#baung-diff-cloning-pm-destination-charges

1 messages · Page 1 of 1 (latest)

simple crypt
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Hello 👋
Not sure If I grasp the question fully. Specifically the cloning payment methods part
Can you elaborate? Do you mean using direct charges vs destination?

simple crypt
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@subtle mountain re-opened the thread 🙂

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Yes, are there any differences between cloning payments from our Platform account and doing doing a direct charge vs doing a destination charge?

subtle mountain
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So we've been using Connect for a long time and everything we do has been cloning the card/payment method and doing a direct charge. There are some SCA requirements now that we might have to move away from cloning the card and moving to destination charges. Trying to understand if there is a difference.

rapid lily
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Hi there 👋 taking over for hanzo. So, if you're moving to Destination Charges, then there won't be much of a need for cloning. The Customer object effectively "lives" on the Platform account. The Platform creates the customers and the customers' payments on behalf of the Connect accounts.

subtle mountain
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Got it. We understand if we do destination charges, we won't have to clone, but trying to determine if there are any functional differences we should be aware of?

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Any pros/cons of moving to destination charges? Is the preferred method to do destination charges?

rapid lily
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trying to determine if there are any functional differences we should be aware of?
They're entirely different. One is a payment flow that sends funds through the platform to the connected account (destination charges), and the other is a way of managing customers across connected accounts (cloning customers). They aren't drop-in replacements and the differences are considerable.

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Any pros/cons of moving to destination charges?
That depends on what you're moving from. If you're moving from Direct Charges, then there are tons of pros and cons. I'd recommend reading this if you haven't already: https://stripe.com/docs/connect/charges#types

Is the preferred method to do destination charges?
It depends on what problem you're solving for. We can't really recommend one over the other, because they both do entirely different things.

subtle mountain
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So we are a bit of an odd use case. I've looked at this doc a bit. All our accounts are Standard Connect. We are looking into destination charges with all transactions will use the on_behalf_of flag. I guess I should have mentioned this. In this case, I'm just trying to see if there are any gotchas I should obviously be looking out for.

quasi depot
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@subtle mountain never use Destination charges with Standard

subtle mountain
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Well, that answers my questions.

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For my knowledge, is there a reason why not? I don't think any Stripe doc says never to?

quasi depot
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I wish we did say it clearly on https://stripe.com/docs/connect/charges. But trust me, I work for Stripe, been here for years, I help thousands of platforms like you a year.
You absolutely don't want to do anything but Direct. Main reason: with destination charges you hold liability for all disputes and refunds and have no way to recover the funds from the connected account

subtle mountain
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You've helped me out with other issues, so I know you know what you're talking about. Thank you.