#robertpartfy-reverse_transfer

1 messages · Page 1 of 1 (latest)

stable furnace
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heya @shadow herald, can you share what are your connected account types? i.e. custom/express/standard?

shadow herald
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express

stable furnace
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I can't think of any situation whereby the request to create a refund is able to be created, and the transfer reversal not occur for Express accounts.

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the reason is that you as the platform, are liable for any negative balance for your Express connected account

shadow herald
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well, in case the express account does not have enough balance to reverse the transfer, what happens in this case?

chilly sundial
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Do you have a specific case where this happened? If so, can you share the Transfer ID (tr_xxx)?

shadow herald
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i really haven't tried out whether this happens, i just wanted to check with you guys whether a refund can raise an error when reverse_transfer is set to true

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does this actually happen? or the reversal is not created (and performed) at all?

split bramble
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As @stable furnace explained, the platform is liable for any negative balances accrued on connected accounts (hence Connect Reserves):

When the connected account’s balance goes negative, Stripe will create a reserve_transaction on the platform account. If there are funds in the platform’s available balance to cover the full amount of the reserve_transaction, that is what will fund the reserve. If the available balance is insufficient to cover the reserve_transaction, the platform’s available balance will be drawn into the negative and a debit to the platform’s linked bank account will be initiated to cover the negative balance.
https://support.stripe.com/questions/reserves-for-connect-platforms-and-connected-accounts

shadow herald
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i see. i thought an exception was rised, because when you actually try to create a transfer reversal by yourself (not via reverse_transfer parameter), an error is thrown, therefore i thought this was the case for refunds with reverse_transfer = true .

split bramble
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My guess is there's no Connect Reserve balance on the platform account, hence the error:

It is only possible to reverse a transfer if the connected account’s available balance is greater than the reversal amount or has connected reserves enabled.

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This should be easy enough for you to test with various scenarios

shadow herald
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alright! yes, i'm going to test this out to check what happens