Stripe Connect Direct Charges

Hi All,

I'm hoping someone can help me out. I'm using MV Plus v4.10.4SP2 and I'm wary about upgrading to 4.11.x due to some comments here about errors and bugs, etc. (the usual stuff)

Anyway my question is about Stripe Connect. Stripe recommended I use Express Account but it seems CS Cart's Stripe Connect Add-On is set up for only Standard Accounts. I guess that works too however the CS Cart documentation states the add-on is set-up with direct charges, i.e. admin receives commission amount and vendor is responsible for fees.

I'm testing this and this is not the case. My testing shows that the admin receives commission and the fees are split between vendor and admin (so admin pays a portion of fees corresponding to commission amount and vendor pays the remaining fees).

So why does CS Cart documentation state (https://docs.cs-cart.com/latest/user_guide/addons/stripe_connect/index.html):

The vendor is responsible for the cost of Stripe fees, refunds, and chargebacks.

when this is clearly not the case? Does anyone here use MV4.11.x with Stripe Connect and does it work as it should per CS Cart documentation. If so, I will need to upgrade.

Please confirm? Thanks in advance.

1 Like

I too would like a response to this please.

Me too please

I too would like a response to this please.

Me too please

Hi both, I figured it out. It's explained in the Configure tab of Stripe Connect payment method :mrgreen:

Basically, if you enable 3D-Secure, the money splits between admin and vendor and the total stripe fee is split so both admin and vendor pay a portion depending on amounts received.

If you disable 3D-Secure, the money is split so admin receives commission (called application fee in stripe dashboard) and vendor receives the rest of the money minus stripe fee. So vendor pays stripe fee if 3D-Secure is disabled.

The downside is if 3D-Secure is enabled, admin will have to manually apply the stripe fee to the vendor by reversing a portion of the transfer in the dashboard.

For example if customer pays £21.70 and admin commission is £18 and shipping is £3.70, total stripe fee is £0.83.

With 3D secure enabled

£21.70 recorded in admin dashboard as customer receipt with below action:

Stripe will give admin £18.00 - £0.69 = £17.31 (in admin dashboard)

And transfer £3.70 - £0.14 = £3.56 to vendor (in admin dashboard)

(total stripe fee £0.83 split between admin and vendor)

Admin will have to manually reverse vendor's transfer amount from the admin dashboard, i.e admin reverses £0.69 to receive full £18.00 and £2.87 is then auto-transferred by stripe to vendor from admin dashboard per transfer payout schedule

If 3D secure is disabled

£21.70 recorded in vendor dashboard as customer receipt with below action:

Stripe will give admin £18.00 (application fee / commission in admin dashboard)

And transfer £3.70 - £0.83 = £2.87 to vendor (in vendor dashboard)

Both admin and vendor receive money instantly (no transfer schedule)

Hope this explanation and examples help!

I apologize for resurrecting this, but this really helped me today because I could not find out why the amounts being transferred were being transferred. My only question is “why” having 3D-Secure enabled would change the way the stripe fees are assessed? 3D-Secure seems to only have to do with further authentication for the buyer, not with how the funds flow or how the Stripe fees would be paid (or at least I would think).

Anyway, thank you and I hope CS-Cart can address some of the documentation on this.

1 Like

Hi!

This behavior is described in the payment’s settings:

Does disabling 3D Secure mean there is a loss of protection?