dipeshdulal-Connect | Stripe Developers | Page 1

soft herald Mar 11, 2022, 9:01 AM

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we are planning to use a separate customer (cus_xxxxxxxx), attach a payment method to the customer, and then charge the customer using destination charge with the destination as one of the connect account (acc_xxxx) that we want inter-currency transfers to transfer
This looks like a normal destination charge to me and I don't see a problem with it

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Granted that; we pay double the stripe processing fees
Could you elaborate on this point?

orchid juniper Mar 11, 2022, 9:11 AM

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Basically, we process the transactions in two steps;
At first, we receive funds from all the currencies into our platform account when user's use our platform using separate charges and transfers. (Certain stripe fee is cut here)

After some time (a month or two), we transfer the collected amount to different connect account's connected to our platform using destination charges. (Another stripe fee is cut here)

orchid juniper Mar 11, 2022, 9:32 AM

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Will there be any legal repercussions that we face in the future that you know of if we use this approach?

soft herald Mar 11, 2022, 9:52 AM

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transfer the collected amount to different connected account using Destination Charge?

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I am sorry I didn't follow the last statement

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Why don't you just transfer to them?

orchid juniper Mar 11, 2022, 10:01 AM

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There are two reasons for this approach;
User will not be able to use our platform without actually creating connect account on our platform. (More time to process connect account = more time the user is away from our platform)

Another one is, if there is a small amount of payments being made then stripe charges platform per transaction which will be a cost burden for the company.

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We want to collect the funds for some time and then send them to users at once. If separate charges and transfers were possible with inter-currency(cross-borders) then it would have been straightforward.

tiny kestrel Mar 11, 2022, 10:18 AM

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what do you call an 'inter-currency transfer'?

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and when you say it's not possible, do you have an example of an API request you made that failed?

soft herald Mar 11, 2022, 10:18 AM

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(was about to type in)

orchid juniper Mar 11, 2022, 10:19 AM

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Well the problem we faced was, Japanese platform cannot transfer platform money to other than Japanese connect accounts. But we need to transfer to connect accounts that's outside japan as well.

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We were using; https://stripe.com/docs/api/transfers api.

Stripe API reference – Transfers – curl

Complete reference documentation for the Stripe API. Includes code snippets and examples for our Python, Java, PHP, Node.js, Go, Ruby, and .NET libraries.

tiny kestrel Mar 11, 2022, 10:20 AM

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yep, but I wouldn't say that is anything to do about currency

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it's cross-border and yes, cross-border transfers are generally blocked and are highly regulated

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https://stripe.com/docs/connect/account-capabilities#transfers-cross-border

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that talks about this and what the options/alternatives are

orchid juniper Mar 11, 2022, 10:23 AM

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Yes. I got that.
But using destination charges, I would be able to send cross borders as well, right ?

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Because the transactions are settled using destination account.

tiny kestrel Mar 11, 2022, 10:23 AM

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only if you use on_behalf_of

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so yes

orchid juniper Mar 11, 2022, 10:24 AM

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So we planned to collect funds using separate charges and transfers. and then after some time (a month or two) send the collected amount using on_behalf_of method to avoid this limitation of cross-border transfers.

tiny kestrel Mar 11, 2022, 10:24 AM

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send the collected amount using on_behalf_of method

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what does that actually mean in terms of the API request you'd make? I don't understand.

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on_behalf_of is used while processing a payment

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it's not involved in making a transfer after the fact

orchid juniper Mar 11, 2022, 10:27 AM

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We would be creating a unique customer (cus_xxxx) with our platform's bank account's payment method registered. (It could be any other payment method totally). And make payment through stripe charging zero on our end.

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we would be transferring the amounts but use payment_intents instead of transfers.

tiny kestrel Mar 11, 2022, 10:29 AM

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you should ask our support team if that's allowed

soft herald Mar 11, 2022, 10:30 AM

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If I get your idea right, you plan to create Customer that actually representing your Platform, then charge them (debit your Platform) then do a Destination Charge targeting the Connected Account

tiny kestrel Mar 11, 2022, 10:30 AM

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yes that's what they are saying

orchid juniper Mar 11, 2022, 10:30 AM

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Exactly.

tiny kestrel Mar 11, 2022, 10:30 AM

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you should ask our support team if that's supportable

orchid juniper Mar 11, 2022, 10:30 AM

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But it's hard for support team to actually understand what we are trying to do.

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😢

tiny kestrel Mar 11, 2022, 10:31 AM

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fair, but they should be able to put you in touch with the people at Stripe who know about regulatory issues

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that's not us, we are developers answering coding question

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what you describe seems risky to me since there is no accounting papertrail of where the transfer came from( a link to the incoming payment) , which is why I'd suggest getting advice on it

orchid juniper Mar 11, 2022, 10:32 AM

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Thank You. Sure, I got that.

#dipeshdulal-Connect