#stricks - connect disputes

1 messages · Page 1 of 1 (latest)

left token
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I believe typically it is just the platform that gets debited and it is on the platform to reverse the transfer or otherwise get money back from the connected account. I believe we have a doc on this, finding that now

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This sounds like you are using Custom or Express accounts, correct?

trim brook
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Hi Pompey, the way I'm implementing is for Standard connected accounts

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but the charge is being done by the platform

left token
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So you are doing seperate charges and transfers but with Standard accounts connected to your platform?

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If the disputed payment was created through the platform using destination charges or separate charges and transfers with or without on_behalf_of, the platform account is automatically debited for the disputed amount and fee. When this happens, the platform can attempt to recover funds from the connected account by reversing the transfer either through the Dashboard or by creating a transfer reversal.
https://stripe.com/docs/disputes/connect

trim brook
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What I'm doing now is like this: I create a full amount paymentIntent to charge the full amount into the platform, and as soon I receive a success from that intent I do a transfer of partial funds to the Standard connected account. In this transfer I do add the source transaction ID from the charge

left token
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Yes, that would be seperate charges and transfers. Even with the source_transaction, we won't automatically pull funds from the connected account. You would need to do a reverse transfer, get a payment method on file from the user and charge it, or transfer them less money in future until that has been paid back

trim brook
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Hmm what I'm seeing in the doc you shared (thanks for that) the platform is the one held accountable. If I do create a direct charges then it's the connected account that is on hold, correct?

left token
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Correct

trim brook
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But is there a way to hold both responsable for it?

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If just the connected account is on hold, how is the application_fee_amount that was transfer for the platform being covered?

left token
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I don't think there is an automatic way to withdraw funds from both, unfortunately.

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For that second question you are talking about direct charges correct?

trim brook
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No problem, yes, I believe I got the wrong approach then, should change to use a direct charge. Yes the second question is about direct charge

left token
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Gotcha, that makes sense. I think we typically recommend direct charges for standard connect accounts anyways. Still looking up what would hapepn here with a direct charge dispute. To my knowledge, the full charge amount would come out of the connected account's balance and it would essentially be up to you if you transfer the application fee back to them or not. I am still looking to confirm that last part.

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Do you know what behavior you would want at the moment for a direct charge being disputed? Would you want to refund your application fee in that case?

trim brook
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Thanks, yeah if there is a dispute I would like my platform to be held accountable for the fees it received, and the connected account for the remaining amount.

left token
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Gotcha, I think in that case you might want to create a connect webhook and listen to the dispute related events which could tell you when to transfer funds back. I will quickly consult my colleagues on this to make sure that that makes sense as I am a bit out of my depth here https://stripe.com/docs/api/events/types#event_types-charge.dispute.closed

Stripe API reference – Types of events – curl

Complete reference documentation for the Stripe API. Includes code snippets and examples for our Python, Java, PHP, Node.js, Go, Ruby, and .NET libraries.

trim brook
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hmm good it looks a great solution to automatically do it. I'll wait for you to confirm with your colleagues then 🙂

left token
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Thank you for your patience there, my colleagues were a bit busy so it took some time to discuss. So that is definitely a viable way to monitor for disputes if you want to refund your application fee

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One thing we specifically noted is that you may want to wait for the dispute to be resolved before refunding your application fee. If you refund the fee and your user wins the dispute, there is not an easy way to recoup the fee again.

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So yeah, if you want this to be completely automatic, listening to the webhooks would be the way to go. You can of course have the webhooks notify you for some kind of human review for whether you want to refund the fee or not as well