What is the Connect fee for managed accounts?
Connect platforms are charged 0.5% of the amount transferred from a managed account’s balance to its associated bank account or debit card. This fee is not immediately deducted from your platform’s Stripe balance. Connect fees are calculated based upon the gross monthly transfer volume across all managed accounts and deducted on a monthly basis in the currencies of your managed accounts. If you would prefer to pass along the Connect fee to your managed account holder, you can do so by implementing (or increasing) a Connect application fee.
Connect fees appear as adjustments in the platform’s balance history. A separate Connect fee monthly report is also available from the Dashboard to aid with reconciliation.
Why does the Connect fee cost 0.5% of funds paid out from a managed accounts’ balance to their bank account?
It takes a lot to successfully manage a marketplace, such as seller verification, getting payouts right, and tax reporting. These requirements often come at the cost of hiring more teams with specific expertise, and spending additional resources and time to implement the right processes and support structures. With managed accounts we’ll take care of all of that for you, so that you can focus on your business.
Managed accounts offer the following features:
Identity verification: Our process takes the burden of identity verification off of the platform, in a way that’s localized to all of our supported countries. Just fill out the information fields we surface to you and we’ll take care of the rest! To help platforms maximize conversions, we provide a flexible on boarding model which allows you to collect information incrementally from your users. That way, you can get them set up with minimal information and only ask for the remainder once they’ve started processing on your platform.
Custom branding: Our process allows for you to fully control and brand the connected accounts experience from on boarding to the dashboard.
Transfers: Our international bank transfer infrastructure allows payouts in any of the countries we support. You have fine grained control over transfers details like setting flexible payout timing, initiating refunds, and utilizing one-off transfers to handle unique situations (e.g. bonuses).
Locally optimized: If you’re a platform based in, for example, the US with connected accounts in Europe, we’ll route everything through local rails in a way that helps minimize declines and maximize conversions. You no longer have to set up your own legal entities to enable sellers internationally.
Reporting: Our reporting and reconciliation tools help you manage the full flow of funds through your platform and monitor the health of the platform. In the US, we’ll even help you take care of 1099-K’s for all eligible sellers on your platform.
Please don’t hesitate to contact us if you have any questions about this or other aspects of our pricing!