Provide and reconcile reportsPrivate preview

The following transaction types are related to financing for your connected accounts, including merchant cash advances and loans:

• Payout: payout
• Paydown: payment
• Reversal: reversal

Payout

Each financing payout has a Financing Transaction object with the type payout. After a payout Financing Transaction is created, Stripe sends a capital.financing_transaction.created webhook. It might take several business days for the ACH funds to arrive in a connected account’s bank account.

Listen to the webhook event and when received, update your custom payout reports to show the financing amount sent to the connected account’s external bank account.

Paydown

To display withholding transactions in your UI:

1. Retrieve Financing Transactions and filter by transaction type.
2. Provide the account ID of the connected account in the Stripe-Account header.

curl -G https://api.stripe.com/v1/capital/financing_transactions \
  -u "
sk_test_BQokikJOvBiI2HlWgH4olfQ2
:" \
  -H "Stripe-Account: 
{{CONNECTED_ACCOUNT_ID}}
" \
  -d type=paydown

If the retrieval of the Financing Transactions list is successful, you receive a response similar to the following:

{
  "object": "list",
  "url": "/v1/capital/financing_transactions?financing_offer=financingoffer_1NAdVWJQ3aJgxqz5nh90Zqrs&charge=ch_1HoZftJQ3aJgxqz50EbvL8zU",
  "has_more": false,
  "data": [
    {
      "id": "cptxn_1NAdVWJQ3aJgxqz5FSScvJaF",
      "object": "capital.financing_transaction",
      "account": "acct_1HLGiXJQ3aJgxqz5",
      "created_at": 1684780258,
      "details": {
        "advance_amount": 10000,
        "currency": "usd",
        "fee_amount": 1000,
        "linked_payment": "ch_1HoZftJQ3aJgxqz50EbvL8zU",
        "reason": "automatic_withholding",
        "total_amount": 11000,
        "transaction": {
          "charge": "ch_1HoZftJQ3aJgxqz50EbvL8zU"
        }
      },
      "financing_offer": "financingoffer_1NAdVWJQ3aJgxqz5nh90Zqrs",
      "livemode": true,
      "type": "payment",
      "user_facing_description": "Paydown of your loan"
    },
    {...},
    {...}
  ]
}

The response contains information describing how this particular paydown affected the outstanding financed amount. If the paydown occurred because of "details.reason": "automatic_withholding", it also contains a reference to the original Stripe payment in the details.transaction field.

Reversal

Each reversal has a Financing Transaction object with the type reversal. A reversal can occur because of a failed ACH transaction, financing cancellation, or a manual reversal request. Providing reversal transactions serve two purposes:

• They can indicate canceled financing. If you included the original financing payout in your reports, include any reversals. This way connected accounts can see that both transactions cancel each other out.
• They can return previously withheld funds to a connected account’s balance. Omitting reversals from your reports can cause reconciliation problems for connected accounts, because the reports might reflect inaccurate financing.

Destination Charges

If your platform processes payments using Destination Charges and you want to reconcile the Financing Transaction paydown with the original charge which occurred on your platform, extract the charge ID in the Financing Transaction’s details.transaction field. This is set to the payment ID which occurred as a result of the automatic Transfer to the connected account:

{
  "id": "cptxn_1NBJQR2eZvKYlo2CBUy2GQ1S",
  "object": "capital.financing_transaction",
  "details": {
    "reason": "automatic_withholding",
    "transaction": {
      "charge": "py_1NBJI62c99H72o8MUEN0fIZx"
    },
    ...
  },
  "type": "payment",
  ...
}

You can then use the Retrieve Charge API to get the charge object:

curl https://api.stripe.com/v1/charges/py_1NBJI62c99H72o8MUEN0fIZx \
  -u "
sk_test_BQokikJOvBiI2HlWgH4olfQ2
:"

{
  "id": "py_1NBJI62c99H72o8MUEN0fIZx",
  "object": "charge",
  "source_transfer": "tr_3NBJGW2eZvKYlo2C1jQOxNwF",
  ...
}

Because this is a Destination Charge, the source_transfer is populated with the Transfer ID. Use the Retrieve Transfer API to get the Transfer object:

curl https://api.stripe.com/v1/transfers/tr_3NBJGW2eZvKYlo2C1jQOxNwF \
  -u "
sk_test_BQokikJOvBiI2HlWgH4olfQ2
:"

{
  "id": "tr_3NBJGW2eZvKYlo2C1jQOxNwF",
  "object": "transfer",
  "source_transaction": "ch_3NBJGW2eZvKYlo2C17oDFajw",
  ...
}

The source_transaction field contains the ID of the Charge which occurred on your platform, triggering a Transfer to the connected account.

You can display paydowns in any list of financing transactions or equivalent models you have in your platform’s UI. For example:

• Existing reports: For existing reports that show a connected account’s individual transactions (including the application fee or interchange costs), consider adding a withholding amount to the report.
• New reports: For new reports, show all withholding amounts for a specific time period. This helps your connected accounts see how much of their sales processing is being applied toward their financing. For payout reports, you might want to include a sum total amount withheld. This is so connected accounts can reconcile their total incoming sales processing, minus the withholding (and any application fees you charge), to arrive at the payout amount they expect to see in their external bank account.