#odraode17 - Connect
pastel solar
Stripe Connect is the product for any form of multi party payments here. You will want to do separate charges this transfers flow but you will need to create additional transfers when appropriate https://stripe.com/docs/connect/charges-transfers
Is there a specific issue you ran in to when trying to implement transfers that follow your diagram?
past pebble
I have been told that Connected Accounts are like a smaller version of real accounts. Could you confirm that if my supplier already has a Stripe account i can connect to it?
pastel solar
You can connect to pre-existing Stripe accounts, but that can make the seperate charges and transfers flow a lot harder https://stripe.com/docs/connect/standard-accounts
past pebble
yes that is exactly the problem
pastel solar
Is there a reason you need the hierarchy like that? Is Organization 2 one of your organizations or is this someone else that is choosing how much to pay out?
Connected Accounts still do have a lot of the functionality of a full account. Is there something from a Standard account that you need for your integration as well?
past pebble
the Organizations in the diagrams are actually different businesses so Org1 would not know how Org2 splits out payments
Connected Accounts still do have a lot of the functionality of a full account. Is there something from a Standard account that you need for your integration as well?
the problem is that all Orgs are big established businesses so we need to channel in between them, no chance they would move to a new sub account not fully controlled by them, these needs to remain independent Orgs
pastel solar
Gotcha. In that case that would make separate charges and transfers easier but I am not sure if that is the right setup here. I am looking in to what other options you may have here.
past pebble
ok, what would be suboptimal about it? would we be also double charged Stripe the fees?
FYI, the use case is actually a bit broader with more than two splits:
pastel solar
Looking in to the limitations on Standard Connect with this flow.
Also from your platform's perspective, you want to split this payment three ways and then some of the accounts will further disperse those funds but you aren't involved in that, correct?
pastel solar
So it looks like a lot of the issues here come from complications whenever there is a refund, dispute, or chargeback. Though also it is important to note that these payments might not show up to your connected account in the way they are expecting.
For the refunds, part of the issue is that the liability is entirely on your platform and your platform may not have a good way of getting those funds back from your connected accounts. You can try to reverse the transfer but that will not work if the connected account does not have sufficient balance for you to reverse it. That also brings up issues of the Connected accounts not being able to see or control anything related to refunds or disputes so you will have to be able to coordinate with them for those.
https://stripe.com/docs/connect/charges-transfers#reversing-transfers
It also may be important to note that the connected accounts won't see these as payments on their dashboard but as transfers. So they can see the money moving in but it may be hard to give them proper context on the payments programmatically.