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Proper way to implement stripe connect

by Ramón Morcillo Cascales

Hey there.

I am building a booking system where my users will have properties with accommodations. The guests will be charged when making a booking. I will implement stripe connect in order to charge the guests the booking price and then send the money to the users.

I see in the stripe docs there are 2 ways of doing so:

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Which one is the best for my use case?
What are the main things the connected account can do in each case?
What should I take into account if I choose one or the other?
Can I move from one to another later?

Ramón Morcillo Cascales's avatarRamón Morcillo Cascales
on May 7, 2023
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    I realize this is super late - You can use either charge types. Key things to keep in mind.

    1. Pay then pay out -> You are responsible for losses from refunds and chargebacks on your connected account. Commonly used when you are a marketplace, platform is the merchant of record.
      1. Platform's name shows up on the receipt
      2. Platform provides customer service for the purchase
    2. Enable biz to accept payment directly -> If you use standard account Stripe will assume any chargebacks and refund losses from your connected account. Connected account is the merchant of record.
      1. Connected account's name shows up on the receipt.
      2. Connected account provides customer service for the purchase

    More details in here on charge types - https://docs.stripe.com/connect/charges

    nkskalyan's avatar nkskalyan
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    2 years ago
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