#beinggandhi - Connect Statement Descriptors

1 messages · Page 1 of 1 (latest)

next anchor
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Hello! Can you give me the ID of one of the payments in question so I can take a look? A Payment Intent or Charge ID would be fine, or a request ID associated with one of them.

flat holly
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This is the custom connect account : acct_1KiN2fQnrzjCjf1g

next anchor
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I need to look at a specific payment.

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One experiencing the issue you're describing.

flat holly
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This is the payment : pi_3KiNGXQnrzjCjf1g0QnIdv4e

next anchor
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Thanks, taking a look...

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Okay, so what is the statement descriptor you wanted to show up here?

flat holly
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The name of the custom connected account. Riddhis Kitchen in this case.

next anchor
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Also, can you tell me why you're using direct charges with Custom accounts? That is not recommended.

flat holly
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We so far are using standard connect account.

we are about to onboard 25 customers with custom connect and saw that the existing code we had with standard connect is working fine except 2 things : 1) statement descriptor and 2) Disputes.

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for standard connect account, we dont set the statement descriptor but it shows up properly. I guess will set this up for both standard and custom accounts

next anchor
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Are you aware that your platform is liable for fraud and disputes with Custom accounts, unlike Standard?

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Also Custom accounts have no access to any Dashboard, so you need to build every interface they need to function.

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And you as the platform will have to manage all refunds, disputes, etc. on your end with direct charges, which is very challenging with Custom accounts.

flat holly
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Refunds is working as in the case of standard account. We didnt have to change anything here.

next anchor
flat holly
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The money is being refunded from the custom account. eg payment pi_3KbhRUQacMl2U9xy1wNmtClJ

next anchor
flat holly
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Yes we do plan to move to express connect. But we already have all the information we need to create a custom account for these customers we bought from other company. In order to make the transfer as seemless for them we are trying to onboard them as custom on our side.

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What is your recommendation. Seems statement descriptor will be solved. Refund works fine as in the case of standard account.

vapid oriole
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Hey there! Stepping in for @next anchor as he needed to step away. Catching up...

flat holly
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The only issue is if someone disputes . Question on that :
Q1) Will we custom connect account get an email for the dispute ? or will it come to platform.
Q2) Since the dispute is for a direct charge. The reversal will happen from the custom connected account. Can you confirm this.
Q3) The fixed dispute charges, will it applied to custom or platform. If it is applied to platform. Can we charge the custom account in turn.

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Yes we do understand we will have to reply to the disputes.

vapid oriole
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So yeah both disputes and refunds will be a challenge if you are using Custom or Express with Direct Charges. One of the main reasons why Standard + Direct is highly recommended, or Destination + Custom/Express.

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Custom accounts will never get emails from Stripe.

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If you want to attempt to handle this, then you would want to use Connect Webhooks to listen for dispute events.

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Q2: The funds will be pulled out of the Connected Account since that is where the dispute will take place

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I think Q2/Q3 are the same question, really?

flat holly
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So in case of dispute the connected account will be paying the fixed dispute fee charged by stripe and the reversal of the payment being disputed.

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So platform account is fine. Why do you say refund and dispute will be a challenge if you are using Custom or Express with Direct Charges.

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example payment pi_3KbhRUQacMl2U9xy1wNmtClJ from custom account with direct charge where refund happened

vapid oriole
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Because you have to manage balances of your Express/Custom accounts directly and cover their negative balances. You can't easily get reporting. And everything needs to be handled via the API (not sure if this is really a blocker if you aren't planning on using the Dashboard much any way).

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It isn't impossible.

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But it is just more complicated to go this route and we really don't recommend it

flat holly
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you mean dont recommend custom connect with direct charges. Even if we do custom connect with destination charge , all the things you said are still applicable right ?

vapid oriole
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Correct we don't recommend custom + direct. No, the above isn't true for Custom + destination. Then all charges take place on your platform.

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And it is much easier for you to manage everything.

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I also didn't mention that with Custom + Direct you can't customize the Radar rules of your Connected Accounts.

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So you are stuck with the defaults.

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Versus with Destination you can set Radar rules as you prefer for your platform and it will apply to all charges.

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Also, who is going to be the Merchant of Record here?

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Who do the end-customer's expect to see information about?

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Your platform, or your Connected Account users?

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Last question that will also be relevant to this convo: where is your platform located vs. where are your Connected Accounts located?

flat holly
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connected account

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both are in the US

vapid oriole
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Got it.

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Yeah would recommend using Destination + on_behalf_of

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What is the desire for Direct?

flat holly
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no code change from standard connected accounts we are running so far.

vapid oriole
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Okay okay I mean that's fair, but really you should just make the effort to change now or run into headaches later on down the road.

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Are you Connected Account users currently handling all refunds/disputes themselves?

flat holly
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Yes.

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Refunds they do from our portal.

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so custom connect accounts are also taken care of.

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We do plan to move to destination charge. what I am trying to understand is can we go live with these customers and run them for a month or 2 in the current mode

vapid oriole
flat holly
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Will we as platform be able to reply to the dispute on custom connected account through our dashboard , if needed.

vapid oriole
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You technically can, yes. You will "View Dashboard as" each time and find the dispute to add evidence to.

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But this is hard to navigate since you won't implicitly know which account the dispute is on without Webhooks for instance.

flat holly
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Will the platform account get email for dispute on custom account.

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As long as connected accounts are footing the dispute charges we should be good. The customers we have dont see a lot of disputes and even if they see they dont respond as average order size is 30$.

vapid oriole
vapid oriole
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This is a major difference from Standard Connect

flat holly
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Makes sense. I am leaning towards taking that risk as :
Even if the account goes -ve for a brief period , the next sets of orders will bring up the balance. Also dispute/refund rate across all customers is < 0.1%

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Is there a fallacy in this line of thought

vapid oriole
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As long as you don't expect to onboard fraudulent accounts then no you likely will be okay.

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I will still continue to recommend that you invest in Destination + OBO though 🙂

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It really will be worth it in the long-run

flat holly
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Thanks

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Am just going through the custom connect docs. is it just switching :

    application_fee_amount: 10cents,
  },

To

  payment_intent_data: {
    application_fee_amount: 2.9% + 30 + 10 cents,
on_behalf_of: '{{CONNECTED_ACCOUNT_ID}}',
    transfer_data: {
      destination: '{{CONNECTED_ACCOUNT_ID}}',
    },
  },
vapid oriole
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Yep

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That is how you would use Destination Charges

flat holly
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Is there any youtube video or docs you recommend for transition in our case.

can you give a rough estimate of dev effort in our case for the transition to destination charge.

vapid oriole
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I can't really. The bigger dev effort depends on how you ingest data.

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The Stripe code change is relatively simple (as you noted above)

flat holly
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We already have reporting as we manage the sales tax and tips

vapid oriole
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Basically how do you handle your customer data will determine the amount of lift

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And adjusting that to the change of Destination charges, since now the Stripe data will be coming from slightly different places.

flat holly
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Also how do we convert our existing standard accounts to custom or express ?

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can we do that without involving the customer.

vapid oriole
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You would need to re-onboard them. No you can't really do this without involving the customer since Standard Accounts are standalone and don't let you as the platform access their data.

flat holly
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Is there a way can block your calendar for 15 mins to do a screen share and get your inputs.

kind moth
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Hello, I am taking over bismarck and catching up

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Is there any specific difficulty about switching to Destination Charge? I am happy to assist

flat holly
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One thing Bismarck said is if we are using direct charges with custom connect, platform is finally responsible for dispute/refund if connected account has -ve balance.

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To ensure that connected account is finally responsible

kind moth
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That parameter only means Stripe will attempt to debit, in case the connected account is responsible. But in your case (Custom Connected Account), the Platform is responsible in the first place After reading it again I am not sure about it. It does imply this parameter works with Custom Connected

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That's how I understand it, but it's best to confirm with Support, really. They should have the concrete answer about these fund-related questions

flat holly
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What is the difference in dispute process for express vs custom. Would the express connected account see the dispute in their limited dashboard and able to reply to that .