#aalzamora - consultant

1 messages · Page 1 of 1 (latest)

boreal prawn
keen mason
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ah sorry!

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i did read the rules but i must have missed this

boreal prawn
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NP 🙂

keen mason
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im wondering if credit notes are the thing

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basically i'm just looking for issuing a credit to a stripe connect account that can't be withdrawn, but only reduces fees

boreal prawn
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Technically you didn't do anything wrong, we only prohibit the people looking to sell services explicitly

keen mason
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oh right. i updated my post anyway

boreal prawn
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Depending on what youre trying to do, this can be complex, but comes down to sharing your collected fees with connected accounts.

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Is there only a single party involved to transfer to, or more than one?

keen mason
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only 1 party

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so there is a buyer and a seller, and if the 2 parties agree on the transaction, we take a %

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the seller is the one that receives the money paid by the buyer, minus our fees. so id like to issue credit/discounts to the sellers "fees", that they can't withdraw

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because people could abuse that system essentially

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its a marketplace, and everyone can be a buyer and a seller

boreal prawn
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In that case you might be able to simply use application fees with destination/direct charges depending on the type of accounts you use

keen mason
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we use custom stripe connect

boreal prawn
keen mason
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great, thank you very much!

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so once we've set up the application fees

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we'd just need to issue a discount to the application fees right?

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and this would be a separate line item that we could then use to visually show in the app the total "credits" applied to the account. and the discount would only apply to "application fees"

boreal prawn
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I'm not sure what you mean by this part

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discount for what?

keen mason
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so the application fees is a way to "apply fees" to the sellers account

boreal prawn
keen mason
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but we are looking to apply a credit which only applies to the "fees". i.e. we dont want to credit the sellers account and then they withdraw that money

boreal prawn
keen mason
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yeah i saw the flow, so the entire payment goes into the connected account, then fees are applied and taken back into the platform account

boreal prawn
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yep

keen mason
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so id like to apply a credit, credit note, discount specifically to the "applicaiton fees" only

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basically we don't want people inviting users who just sign up so they can withdraw the "credit"

boreal prawn
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Credit to who, for what?

keen mason
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its a referral system

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sorry i should have mentioned that more explicilty

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so we say, we'll credit you $100 for each user you sign up

boreal prawn
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Sure, but are you paying them or not? I'm not sure what you mean by credit here

keen mason
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instead of paying them directly $100 which they can then withdraw

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we are crediting their account with $100 which reduces their application fees only

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so they can't technically withdraw the money, they can just reduce their fees overtime

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it means 1) that the system can't be abused, and 2) we don't spend hundreds of thousands on a referral system

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if the seller is actively using the platform, then they will "get" $100, but they get in the form of reduced fees, not immediately cash to withdraw

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as long as a discount or credit can be applied specifically to the "application fees" part of the process then this works. but if it goes directly in the connected account, then it can be withdrawn

boreal prawn
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That concept doesn't really exist in account balances -- you either transfer them funds or not

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And actually if the share is a small portion, you probably want the transfer amount approach instead

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then if you don't want them to always pay out, you may want to consider manual payouts, and track the eligible withdrawal in your own system:

keen mason
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we collect 20%

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the avg transaction is about $30

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we currently use the manual payouts transfer solution, not the applicaiton fees one

boreal prawn
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application fees are for taking your paltform share, the transfer is what you pay to the conencted account

keen mason
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so we could manually code everything to keep track of "fees" and "credits", but i was hoping there was a way to do it more sensibly

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i think we calculate the fees during the transfer amount, and only transfer the 80% after the transacton takes place

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so the connected account only gets 1 transfer

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which is maybe not the best way to have done it

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thank you for all of yoru time btw

boreal prawn
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Yep, you can e fully in control of that -- if you want to defer the transfer until much later, you can also choose to use separate transfers:

keen mason
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the buyer pays up front, we hold the money in the platform account. if the transaction (a 1:1 call) takes place, then we transfer the amount minus our "fees" to the seller, if not we refund the buyer

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but as long as there is no way to specifically apply some sort of credit, discount, credit note to the application fees and prevent that from being withdrawn. we'll need to code it manually it seems

boreal prawn
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Yea this might be what you want to use to track -- then the amount you transfers is whats available for the account

keen mason
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thx

boreal prawn
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NP!