#xxxxx-refund-fee
floral frost
so that means we should not return the stripe fee back to our buyer ?
sharp geyser
Say you process a charge for $10 which as a $1 fee. You then refund the original payment, so $10 will be returned to the buyer and your net will be -$1
floral frost
that means i shouldn't return the stripe fee back to the buyer i should only return the product_cost + restocking fee.
Right?
sharp geyser
Well, it's up to you
But default behaviour is to refund the full charge amount, which leaves the Stripe merchant with a negative net amount
sharp geyser
You process a charge for $10 which has a $1 fee.
You then refund the original charge, so the full $10 will be refunded to the buyer (assuming you don't pass the amount parameter).
The processing fee ($1) is not returned to the Stripe account if the charge is refunded.
$10 - $10 (refund) - $1 (fee) = -$1
floral frost
how it is like that like i have a product of $10 and $1 stripe fee so the amount collected is $10 + $1 = $11. Now at the time of refund i just refund the $10 only . so $11-$10=$1 how it is creating a negative balance?
sharp geyser
The Stripe fee isn't collected on top of the charge amount. It's deducted from the charge amount
floral frost
sorry i didn't understand.
sharp geyser
The example I outlined explains this
floral frost
while calling the api stripe.paymentIntents.create under the amount we are passing the product selling price and under the application_fee_amount we are passing the stripe fee + platform fee , so this is collected from the buyer card and send to the seller stripe account right?
floral frost
then at the time of refund we are just refund only the selling price of product.
Then i am not getting how it will create negative balance?
sharp geyser
You didn't specify you were charging to cover the Stripe fee
floral frost
means?
sharp geyser
Can you state your original question please, I'm very confused
floral frost
Yes sure, like my buyer purchase a product of $10 so we charge him $1[stripe fee] + $2[ platform fee] , so the total amount charged is $13. Now our buyer cancel the order , now we have to give him refund - so we just give him $13 - $1[restocking fee].
we also have to deduct the stripe fee as well? when we are refunding $13 - $1[restocking fee]-$1[stripe fee] .
if i don't deduct the stripe fee while refunding will it impact anything?
Is it clear now?
sharp geyser
That's entirely up to you/your business. But Stripe will not return the processing fee following a refund
floral frost
will it create negative balance?
sharp geyser
In your example, the net amount would be $0
floral frost
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will in this case if i remove the stripe fee , will it create a negative balance?
can you please check it out?
sharp geyser
Have you tested it?
floral frost
yes , as my client is saying that we should only deduct the restocking fee from the product selling price , not the stripe fee also.
Will it not create a negative balance?
sharp geyser
It depends. What's the Stripe fee for the particular transaction?
So in that particular instance, no. If you refunded the Stripe fee you'd be left with US$0.50
floral frost
i am asking if i do not return the stripe fee then?
sharp geyser
Is it not clear from that screenshot?
floral frost
basically how can i check for the negative balance?
Amount: $9.68
Refunded: $8.91
Fee: $0.58
Net:$0.19
If i do not deduct the stripe fee. Can you please tell from where this $0.58 is coming.
stripe is charging?
sharp geyser
That's the Stripe processing fee calculated according to our pricing on the basis of the $9.68 charge
floral frost
That means stripe also charge for refunds?
sharp geyser
No, we don't charge for refunds:
There are no fees to refund a charge, but the fees from the original charge aren’t returned.
https://stripe.com/docs/refunds