#dimi-connect
hollow hollow
hey 👋
on_behalf_of is to make the payment as by setting the Direct Debit payer to the on_behalf_of account, which isn't the account that's arranging it, is that correct?
for example, we have connect accounts on our platform U1 and U2
if we set a payment from U1 to our platform's stripe account, then we don't need on_behalf_of?
but we do for U1 to U2?
drifting tusk
we set a payment from U1 to our platform's stripe account
I don't follow. U1(a connected account) doesn't pay you(a platform). An end-customer does.
hollow hollow
could this end customer be a user on our platform with a Custom Connect account?
for white-labelling?
drifting tusk
you as the platform P charge a customer C and transfer some of the incoming funds to an account U. By default, the direct debit details use P's settings/statement descriptor etc. Using on_behalf_of lets you make that use U's info instead so the customer sees themselves as being charged by U.
drifting tusk
could this end customer be a user on our platform with a Custom Connect account?
well it's a Customer object cus_xxx in the API that you work with, that's the end-customer. Not an Account acct_xxx.
hollow hollow
oh ok
drifting tusk
you can maybe set up a Customer C and Account U and work with the same underlying human being to collect info for those objects, and in your database, act like those are the same entity.
hollow hollow
I'm working through understanding this, thanks a lot, bear with me.
So, a user registers on our platform and onboards via Custom Connect, then they select that they want to set up a DD payment going to another user U2 on our platform.
- Does the money have to go through our Stripe balance and then we transfer it to U2 (akin to transfers capability payouts)
- Does U2 need to have a Stripe Connect account, or does the DD payment just go straight from U1's bank account to U2's bank account, with the platform's settings/statement descriptor?
drifting tusk
- Yes. You can't transfer from one Stripe account to another directly, only from a platform to a connected account.
2 .The rule of thumb is people paying money are Customers and they don't need Stripe accounts, just API objects you create. People recieving money need Stripe accounts(so they can verify their identity). So yes they need an account. The DD payment always goes to your platform, and then you set things up to transfer some of the money to U2(https://stripe.com/docs/connect/destination-charges#flow-of-funds-app-fee) and then it gets paid out to their bank account later.