#Andrew - connect accounts
wooden notch
Hi there. One moment
Yeah so using direct charges with anything other than standard accounts is highly discouraged actually due to a number of issues. I recommend going with destination charges if you have to use custom accounts
smoky jungle
Yea i originally was doing transfers but switched to direct because of concerns of chargebacks but realized later on that given the industry (beauty appointments etc,) the chargebacks fear wasn't justifiable enough. So i plan on switching back. I guess i liked the idea of having charges separated from the platform. But thanks for the heads up/reply. Also would you mind giving a couple of reasons why it's discouraged?
wooden notch
Sure thing. Here's a few (and I can expand on them if you need): addressing disputes becomes increasingly difficult through the dashboard, platforms have to cover for negative balances of their Custom accounts, these charges aren’t compatible with Radar, which is a major blocker for European accounts, platforms can’t easily get any metrics (like decline and conversion rates) that represent payments across all their connected accounts, email Receipt customization is limited, and it can be difficult to predict expected fee behavior.
smoky jungle
Transfers is also simpler in that i don't have to clone payment methods anymore that were created on the platform.
Wait i thought negative balances had t be covered by the platform in both scenarios?
But those are good reasons.
opaque ferry
Hello! Taking over and catching up...
With Standard accounts fraud and dispute liability rests with the Standard account holder, not your platform.
smoky jungle
Yea this is providing some clarity.
opaque ferry
Yep!
smoky jungle
The second paragraph is confusing though.
It mentions payments created on the platform and stripe will try to debit the connect account first. But the second paragraph mentions that payments created using destination charges is my responsibility?
I guess the better question is do i need destination charges really? or will transfers and application fees be sufficient?
Will on_behalf_of make Stripe debit the platforms account for a dispute? Or does that parameter only effect the Statement descriptor?
Also i might be mixing dispute vs refund.
opaque ferry
Let's back up a bit; what connected account type are you using? Standard, Express, or Custom?
smoky jungle
custom
opaque ferry
Okay, so with Custom accounts you should be using destination charges, period.
Not direct.
If you have a destination charge on your platform account with a connected account specified and that charge is disputed then the connected account will be debited first.
smoky jungle
Ah gotcha. And this clears up on_behalf_of
Only capability i need is transfers then.
opaque ferry
Yep!
smoky jungle
Alright this clears up my questions. Thanks for the help!