[Stripe Connect] application_fee calculated on top of stripe_fee

[Giovani]

Hello,

I have a marketplace, platform account through which I intermediate charges from sellers to buyers via Stripe Connect [1]. Sellers connect to my platform as standalone accounts [2].

As an input to calculate the application_fee parameter, I would like to know in advance how much Stripe's fee will be for a particular charge. This is because, as an European company, the fee that Stripe will collect from me can radically vary, i.e., from 1.4% to 2.9% (plus 0.25€). In other words, while calculating application_fee, I would like to have the same flexibility that Stripe has in differentiating its fees amongst European and Non-European cards. The idea is to come up with collecting rules for our sellers likes this:

- 1% on top of what Stripe charges you.

- 0.30€ on top of what Stripe charges you.

Is that possible?

[1] https://stripe.com/docs/connect/payments-fees#charging-through-the-platform

[2] https://stripe.com/docs/connect/standalone-accounts

[3] https://stripe.com/es/pricing

Thanks in advance,

Giovani

[Martin McInnes]

+1 on this.

I also operate a Stripe Connect based platform and we try to display fees to customers before charging them. It would be good if Stripe.js could tell you the rate that the card details provided will be charged. 

[Matthew Arkin]

If you charge directly[1], (eg using the Stripe-Account header or an access token), Stripe charges the Stripe fee directly to the connected account, thus your application fee is charged in addition to the Stripe fee.

So if you were to charge $10, with the Stripe fee being 2.9% + .30 , the Stripe fee would be .59, and then you could charge say a $2 application fee. The connected account would take home $10 - $.59 -$2 or $7.41

As to getting the actual fee Stripe will charge before hand that becomes pretty difficult when you consider volume pricing that may be based on interchange pricing, especially since the cost of the interchange for a transaction may not be known until after the charge. 

Matt

[1] https://stripe.com/docs/connect/payments-fees#charging-directly

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[Giovani]

Thanks Matthew for the reply.

I read in the documentation that, in order to charge directly, the buyer has to be registered as a costumer in the seller's account. I wonder if, in such scenario, I could store in my platform the buyer's payment information so that I would not have to ask him for his credit card information every time he makes a purchase in a new seller. Do you know if it's possible?

- Giovani

[Remi J.]

Hey Giovani,

You can do this using Shared Customers as explained here: https://stripe.com/docs/connect/shared-customers

The idea is that you store the customer in your platform account and then when you want to charge him directly on a connected account you first create a brand new token for their saved card and then use that token to create a charge directly on the connected account as explained here: https://stripe.com/docs/connect/payments-fees#charging-directly

All the best,

Remi

[Giovani]

Thanks Remi. I'll try that!

Cheers,

Giovani