Stripe may recommend the use of Destination Charges (or Separate Charges and Transfers) or Direct Charges depending on your particular use case.

Using Direct Charges means payments occur across various connected accounts, they are not centrally located on your platform account. As a result, it becomes more difficult to handle common needs that arise with increased volume. Issues include the following:

• Addressing disputes can only be self-served by a connected account in the Stripe Dashboard: The Express Dashboard does not offer the ability to address disputes, so it has to be done by the platform. If your platform wants to give connected accounts who do not have access to the Stripe Dashboard the ability to self-serve their disputes, you will need to build your own dashboard UI.
• Platforms have to cover for negative balances of accounts in which they are liable for losses: Refunds for Direct Charges come from the connected account’s balance and Stripe fees (which are paid by the connected account for Direct Charges) are not returned, making it more likely for a connected account to have a negative balance. When a platform is responsible for the negative balances of an account and a negative balance occurs, Stripe will hold a reserve from your available balance.
• Not all charge types are compatible with Radar: Your platform’s Radar rules only apply to charges created on your platform, not to charges directly created on your connected accounts. Direct charges are subject to your connected account’s rules, but accounts without Stripe Dashboard access cannot set their own Radar rules.
• Platforms can’t easily get any metrics (like decline and conversion rates) that represent payments across all connected accounts: It takes more work to gather this data because this information is distributed across many accounts. Metrics are much easier to calculate and track when you can access the information in one centralized place.
• Email receipt customization is limited: Email receipts that are sent for Direct Charges reflect the settings of the connected account. As a result, you can’t make changes, such as opting to include a support phone number in the receipt, as this setting is not available for connected accounts.