#xxxxx-reversal-transfer

1 messages · Page 1 of 1 (latest)

split willow
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Hi there, yes the reversal transfers the amount from connected account to the platform.

real mason
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what does this reverse_transfer: true do in the refund api?

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what's its use?

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And if in case the connected account does not have sufficient balance then will it not create a negative balance?

split willow
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it indicates whether the refund should be reversed. i.e.
reverse_transfer: false -> the connected account keeps the fund -> platform account to cover the negative balance from the refund
reverse_transfer: true -> to pull back the funds from the connected account to cover the refund

real mason
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what about this - if in case the connected account does not have sufficient balance then will it not create a negative balance

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if we perform reversal transfer.

split willow
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if the connected account has insufficient balance then it's a negative balance that the platform needs to cover.

real mason
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But in our system we are not holding the funds we are directly sending the funds to the connected account. Will if i perform refund and do reverse transfer it will create a negative balance in my connected account. Then how it will be managed?

split willow
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I see, then you can use reverse_transfer: true in this case to pull back the funds from the connected account to cover the refund.

real mason
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and negative balance?

split willow
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Since the fund is transferred back to your platform account, this refund won't result a negative balance.

real mason
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How, if in case the connected account does not have sufficient balance and we perform reverse transfer , will it not create a negative balance in my connected account?

split willow
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OK, so you are referring to the connected account here, yes your connected account will have a negative balance if there is insufficient balance.

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Do you have a specific problem that you want us to solve?

real mason
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In our system we have a function to send refunds , in that we are first calling the refund api to send refunds back to the buyer then we are calling the reverse transfer to send money back from connected account to the platform . My question is that if in case the connected account doesn't have sufficient balance and if we perform reverse transfer it will create negative balance. How this will be managed? and what should be the best strategy to handle refunds.

split willow
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Got it, how how performing the reverse transfer later when your connected accounts have sufficient funds?

real mason
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As refund use our stripe balance so we goes on performing refund and do not perform reverse transfer ,will it not create negative balance in our platform account?

split willow
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My shrift is over and my colleague will join this thread to help you soon!

versed lily
real mason
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that means it will be covered in future transactions. Right?

versed lily
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Can you clarify your question? Also what type of connected account are you using?

Ultimate responsibility for negative balances depends upon the relationship between your platform and the connected account. A connected Standard account is always ultimately responsible to cover negative balances. For Express and Custom accounts, the platform is ultimately responsible to cover negative balances.

real mason
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I am using Connect

versed lily
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But is it Standard, Express, or Custom?

real mason
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Custom

versed lily
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Got it, so your platform account is responsible for the negative balance of your Express accounts.

real mason
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So how it will cover the negative balance?

versed lily
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I recommend reading the link I shared earlier. It mentions this:

To ensure funds can be covered, Stripe holds a reserve on your platform account’s available balance to cover any negative available balances across your Custom and Express accounts.

real mason
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Yes. My question is that what's the best way to handle refunds , as in my case it is creating a negative balance?