#rafael-onboarding-portugal
long spear
@remote rapids setting recipient agreement requires approval
You should work with our support team https://support.stripe.com/contact
remote rapids
what u mean?
i'm able to set recipient agreement that's not my question
if you go to https://stripe.com/docs/connect/cross-border-payouts
the doc states that the contries on the list can only use service agreement type recipient
what i'm saying is that i was able to use the full type in the case of Portugal
so what i'm trying to figured out is why was that possible, and if stripe have that list updated or not
long spear
http://stripe.com/global we have supported Portugal for a long time without recipient type
I'm sorry I don't really understand the question
remote rapids
"Cross-border payouts only work with the recipient service agreement"
Portugal its a crossborder country
long spear
no
Portugal is both
You can have a connected account in Portugal with recipient agreement for cross-border payouts. Or you can have an account with full for normal direct charges
remote rapids
so how i can know when a country is a crossborder payout or not
long spear
it's not really how you should be thinking about it though
Usually, as a business you solely want to use cross-border payouts globally because you aggregate all the funds and just want to do payouts. That includes lots of new countries
Does that make sense?
remote rapids
one sec, i'm revviewing that
what i'm trying to understand is what stripe considers a cross-border country
an then the other definition of supported country. If the country is on this list stripe.com/global means that i can use the on_behalf_of, if not i can't
long spear
ah I see, so yes that's a good way to look at it
Cross border countries is basically: all supported countries plus net new countries that can only do cross-border
remote rapids
i«m writing down the points that i need to clarify
1min
i think i didn't understand
For example when stripe charges more fees ? i was wonder the impression that when the country was not supported by stripe exists an extra fee
Also i didnt understand: so a crossborder country is a country that is on that list? and means that is supported by stripe? ( what are the new contries that you mention?)
long spear
I'm sorry you're looking at this quite wrong but I don't seem to be able to put my fingers on why
As a platform, if you create a connected account acct_A with a recipient agreement, you pay the cross-border fee
If you create a connected account acct_B with a full agreement, you do not pay that fee. But the countries that can be used for those "full" accounts are the ones on https://stripe.com/global
remote rapids
Ah ok, so when an account is recipient Stripe charges an extra fee( what is the percentage?)
When i know that the acct need to BE setup was a recipient ? When its not on the stripe.com/global List?
long spear
We cover pricing in details here https://stripe.com/connect/pricing
And we're back to what I said earlier: this isn't really the right way to look at it
you are not supposed to "just use cross-border payouts sometimes" usually. It's more about your business model
but otherwise yes, if a country is not on https://stripe.com/global and you want to send funds to them in that country you have to use recipient for that country
remote rapids
For example on the case of Argentina i cannot use the full because its not suported by stripe
long spear
correct
remote rapids
The problem its i have to have that dinamyc because the platform Will have Multiple contries .. so when onboarding i need to know if i can use the recipient or the full
long spear
not really
in most cases you'd use cross-border payouts ~everywhere when you use it
it's quite rare to use full in some cases and CBP in others since it changes your overall flow of funds
remote rapids
1sec checking some stuff
long spear
sure!
cerulean sparrow
Reopened your thread @remote rapids
remote rapids
ty, give me a second to formulate my questions
Ok, i will start from the begining .. our platform is based in US, and we will be onboarding accounts from different contries like Argentina, UK, US,..
On that note i have a question regarding the diffence of the service agreement types full/recipient. koopjah try to explain but i didnt full understand the differences between both and when one or the other should be used.
note: when talking with stripe they told me this
- Full services agreement = where you can open up a Stripe account, and therefore where you can use On Behalf Of; Includes the card payments capabilities (so they can accept payments) and transfers capabilities (to transfer funds to them)
- Recipient services agreement = for the countries who have an asterisk on the Connect page, where you would use cross-border payouts (and therefore can do payouts only, which _company will be the merchant of record); includes only the transfers capabilities for you to transfer funds to them
cerulean sparrow
Thanks for all the context!
Yes, the decision to use full vs recipient services agreement can be thought of as choosing different funds flows. With the full services agreement you'd have to use on_behalf_of (as you already mentioned) and the connected account would be the merchant of record. With the recipient agreement the platform can be the merchant of record
remote rapids
So that approach is correct? If the country on this list (https://stripe.com/en-pt/connect/pricing) have an astrisk means that i should use recipient, if not i should use full.
On other note: the on_behalf_of is alllways used when we use full (and the contry is supported by stripe?)
cerulean sparrow
Sorry let me clarify - you should not be dynamically deciding your service agreement based on the connect account country. You want to be deciding what you want your funds flow to look like, and then select your approach based on that.
remote rapids
oh understood, but i mention that because is what i was told by stripe (the note that i pasted) so that's why i'm a bit confused on this topic
cerulean sparrow
Yeah i understand why you're confused (it's a complicated topic, and it's easy to mix up a lot of things)
remote rapids
what i dont understand is why then stripe told to use that approach, because from what you are describing the account created on the plaform should allways have the same service agreement type
cerulean sparrow
Was this an approach that was suggested when talking to support? They probably suggested it because switching service agreements based on country is something you could technically do, but as koopajah said it's not really common and it's likely not what you want.
long spear
Well I mean it depends
if you're like Ebay, you want to accept payments on behalf of the seller with local acquiring wherever you can
but you also are fine aggregating funds yourself for countries where we only support payouts
so there are many grey areas and "it depends". But this is 100% about funds flows, regulations and compliance, etc. It's something you would discuss end to end with our support team really
It's up to you which countries you want to handle as cross-border payouts or not mostly and which ones you take the risk on versus others. Talking to support is the best next step instead of this Discord server for questions like this
remote rapids
what is the key difference between the flow of the funds of these two?
long spear
usually with full agreement you use on_behalf_of for destination charges for example
But really, you need to talk to our support team. We focus on the code itself, we know some things about the flow but there are many rules and regulations and compliance requirements. You need to work with the support team to go over in details for your entire business model, international expansion and all that
remote rapids
usually with `full` agreement you use `on_behalf_of` for destination charges for...
but for instance Portugal requires me to use on_behalf_of param for some reason