Answers
Direct answers
Short pages giving complete answers first — written so the first sentence stands alone whether it arrives via search or an assistant quoting us. Detail follows; padding does not.
Refunds & transfers
Why did my Stripe Connect refund lose money?
Refunding a destination charge returns the buyer’s money from your platform balance while the seller’s transfer stays put unless code asked for it back. Nothing errored.
Does Stripe warn you when you leave money behind?
No. A refund without reverse_transfer is a valid instruction and Stripe executes valid instructions silently. No error, warning, or dashboard flag exists.
Who is liable for a refund on Stripe Connect?
On destination charges and separate charges & transfers, the platform is merchant of record and absorbs refunds mechanically. Direct charges debit sellers directly instead.
How long do I have to reverse a Stripe Connect transfer?
There is no Stripe-imposed expiry — the real limit is whether the connected account still holds reachable balance. Each payout cycle converts retrieval into claims.
The platform paid the refund and the seller kept the money — what is that called?
It is usually an unreversed transfer: the refund omitted reverse_transfer, so buyer money left the platform while the connected account retained the original transfer.
Can Stripe automatically reverse transfers on refund?
Stripe reverses automatically only when the refund request includes reverse_transfer: true. Without it — the default — nothing returns. No account-level setting flips this globally.
Fees & balances
What is an application fee on Stripe Connect?
An application fee is the platform’s cut of a Connect transaction — collected at charge time atop funds destined for the connected account. It is how take rate becomes code.
Is keeping the application fee on refunded orders legal?
Depends on jurisdiction and seller terms — this is not legal advice. Operationally: common, defensible when disclosed, risky when sellers never agreed.
Why is my Stripe balance negative?
Balances go negative when obligations exceed inflows: post-payout dispute debits, stale reversals, oversized refunds, fee refunds on empty balances. Stripe recovers from future volume.
Models & mechanics
What is a destination charge?
Created on the platform with transfer_data[destination] pointing at a connected account: funds land on the platform, fee skims off, remainder transfers immediately.
What is FX slippage in payments?
FX slippage is the gap between the exchange rate you expected and the rate actually applied when money crossed currencies — spread made visible by measurement.
How should a marketplace handle refund liability?
Most destination-charge marketplaces absorb refunds mechanically and recover from sellers deliberately: reverse inside payout windows, net the rest, write off what neither reaches — under written terms.