What’s the difference between a Connect Standard account and a Connect Custom account?
A Standard Stripe account is controlled by the account holder (i.e., your platform’s user). A Custom Stripe account gives you control over your users’ entire onboarding experience. The custom Stripe account is almost completely invisible to your user, and you’re responsible for all interactions with them.
Can I pay out my vendors, contractors, or service providers with the funds I collect from Stripe?
Yes! Using Stripe Connect, you can arrange payment to third parties anywhere where Stripe is available.
Can I enable my users to receive payments from others?
Yes! We’ve created Stripe Connect for exactly these use cases.
With Stripe Connect, you can accept payments for your users without being involved in the flow of funds. When your users “Connect with Stripe”, they’ll be prompted to connect their existing Stripe account or frictionlessly create their own, and you’ll have access to their account to make API calls for them.
What is the process for verifying Custom accounts?
Every country has its own set of rules about paying out funds to individuals and businesses. These are typically known as “Know Your Customer” regulations, or KYC. These regulations broadly require two things: collecting information, and verifying the information is accurate.
Stripe does a lot of the heavy lifting for you when it comes to KYC and have identified what information usually needs to be collected. However, in terms of exactly when and how to ask for information, Stripe leaves a lot up to you, the platform. After all, you understand the of nuances your particular business better than we do. Click the above link for more details on the verification flow and what information you’ll need.
What controls does Stripe Connect provide for handling refunds and disputes tied to Custom accounts?
If you are using Stripe Connect and Custom accounts, your platform will ultimately be responsible for refunds and chargebacks. This is true whether you charge directly on the Custom account or through your platform using the destination parameter.
We provide a number of tools that let you create refunds on behalf of the Custom account, as well as retrieve funds back from Custom accounts when a refund or chargeback occurs.
Are there best practices for platforms using Stripe Connect?
We provide documentation for best practices here, or you can get started with Connect here