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Stripe Connect - Marketplace
  • Introduction
    • 👋Welcome
    • Key use cases
    • Key features
  • Getting Started
    • Activating Stripe Connect
    • Adding your icon and branding
    • Installing the plugin
    • Configuring API keys
  • Implementing Key Features
    • Onboarding merchants
    • Checkout Sessions & Payment Forms
    • Splitting one-off payments
      • Autofill customer details
    • Saving down details of a transaction
      • Expiring Checkout Sessions
    • Processing Refunds
      • Insufficient Merchant Account Balance
    • Give merchants access to Stripe Express dashboard
      • Set custom descriptions for charges
      • Allow merchants to set their own payout schedule
    • Splitting subscription payments
      • Allow customers to cancel subscriptions via the Stripe Billing Portal
      • Updating Subscriptions
      • Viewing and downloading invoices for subscription payments
    • Embedding Payment Forms in your app
    • Invoices
      • Creating invoices
      • 'On behalf of' parameter
    • Promotion Codes (Discounts)
    • Integrating Stripe Tax
      • Tax for marketplaces
      • Using a Stripe Webhook to transfer tax to the platform account
  • Common Payment Flows
    • Overview
    • Delayed Payments (escrow-like)
      • Retrieving information on a transfer
      • Canceling an Authorized Payment
    • Shopping Cart Payments with Multiple Sellers
    • Charge a customer using saved payment details
  • Deploying to live
    • Checklist
  • Useful Tips
    • Debugging errors
    • Support
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  1. Implementing Key Features
  2. Processing Refunds

Insufficient Merchant Account Balance

PreviousProcessing RefundsNextGive merchants access to Stripe Express dashboard

Last updated 9 months ago

When a refund occurs, Stripe will first try to recover the funds from either the Connected account’s Stripe balance or their linked bank account.

If this fails (because there are not sufficient funds in either), Stripe will take the funds from the platform account.

So ultimately, it is the platform that is responsible for ensuring customers are made whole. Please note that this applies to Stripe Express accounts (which are typically those used with this plugin and recommended for most marketplaces), but not standard Stripe accounts.

You can read more about this at the link below:

https://support.stripe.com/questions/reserves-for-connect-platforms-and-connected-accounts