If you opt for a stripe connect account, can you enable other businesses to accept payments directly?
It seems stripe offer this function but wasn’t sure if you can integrate into Tradly as only pay-outs are mentioned in your documentation.
If it is possible, can platforms deduct commission and special fees? or just commissions?
I understand a bonus of this is the platform isn’t responsible for chargebacks or handling refunds, but also the platform is powerless to intervene in disputes?
Correction - This looks to be available on connect and standard stripe not just connect.
When using Standard accounts, Stripe recommends that you create direct charges. Though uncommon, there are times when it’s appropriate to use direct charges on Express or Custom accounts. With this charge type:
You create a charge on your user’s account so the payment appears as a charge on the connected account, not in your account balance.
The connected account’s balance increases with every charge.
Your account balance increases with application fees from every charge.
The connected account’s balance is debited for Stripe fees, refunds, and chargebacks.
I managed to connect my stripe account and it works. However at the moment, I take the payment then it transfers to the seller on delivery I believe. I want to know how to change this to direct payments as per above.
Added to the complexity, Stripe have uploaded new page layouts so they look very different to your screenshots. Just something to consider for new clients.
Yes this is what im enquiring if it is possible. Above it shows you can still take marketplace commissions with this direct model - the benefit is the marketplace is not liable for chargebacks or processing refunds.
Stripe set up pages are really unclear - I believe i’m on a standard account but it doesn’t state this clearly anywhere, it only has recommendations.
My current stripe set up means I get the payment, then the seller gets a pay-out using ‘transfer’. I understanding with this set up, if a buyer wants a refund, I have to get the seller to refund to my stripe account and then I have to refund back to the buyer (two step process) as the seller cannot refund direct to the buyer. Also i’m guessing (cant really test this) that if a buyer does a fraudulent chargeback, my marketplace will pay this and it would be my challenge to try recoup this back from the seller. Below demonstrates my current workflow
I cannot see any information on if standard plan with direct payments is possible and if it is how to set this up.
This could open another offering for Tradly for another type of marketplace and benefit many platforms such as mine as it offers some major differences to the other two set ups:
No platform liability for chargebacks
No administration of refunds
Can still operate a referral commission based platform
Lower fees for platform from stripe making a business more viable.
My comparison has unknown information marked in blue. Do you know the information for these sections?
For anyone using Standard or Express with destination payments, the major negatives can be:
Platforms are liable for chargebacks and chargeback fees
Platforms must be involved in refunds
The transfer/pay-out to seller on standard has no meta data (unlike the original transaction to the platform). This makes the tracking/ record keeping of refunds hard for the seller and platform as it needs to be managed outside of tradly.
Is the meta data passed on when the platform uses Stripes express plan?
Can express plan offer refunds initiated on tradly by the seller or do they also have to initiate a refund from stripe dashboard like on a standard plan?
Your support is much appreciated on this complex issue.
