# Fee behavior on connected accounts

Understand how to configure the billing behavior for new connected accounts when using direct charges.

The [controller.fees.payer](https://docs.stripe.com/api/accounts/object.md#account_object-controller-fees-payer) property on the `Account` determines the set of billing behaviors you can expect when using [direct charges](https://docs.stripe.com/connect/direct-charges.md) with a connected account. This doc details the behavior of the different values it can have.

> Any activity occurring at the platform account level is billed to your platform regardless of the entity responsible for fee collection. For example, Stripe charges the platform directly for destination charges (with or without `on_behalf_of`) and card account updates for cards stored on your platform account.

## Selecting billing behavior

You can specify the fee payer only when you create an account.

The following sections describe the behavior of each value.

### account 

Stripe collects fees directly from your connected account. We don’t charge any [Connect fees](https://stripe.com/connect/pricing) to it or to your platform.

Any application fees that your platform bills to the connected account are in addition to Stripe fees.

You can set the fee payer when you create connected accounts. Accounts created with `type=standard` also have this value.

### application

The platform pays payment fees for direct charges and fees for Stripe products like Radar, Card Account Updater, and Instant Payouts. For complete details, see [the table below](https://docs.stripe.com/connect/direct-charges-fee-payer-behavior.md#fee-payer-behaviors).

The platform also pays [Connect fees](https://stripe.com/connect/pricing) for these accounts .

We recommend that you monetize payments and Stripe products where the platform is billed by collecting fees from your connected accounts.

You can set the payer type to `application` when you create connected accounts.

Platforms that pay Stripe payment fees for direct charges can access dedicated reports.

See [Platform Reporting for direct charge payment fees paid by platform](https://docs.stripe.com/connect/direct-charge-buy-rate-reporting-overview.md).

### application_custom or application_express

`application_custom` and `application_express` are assigned to accounts created with `type=custom` and `type=express`, respectively. Their billing behaviors for direct charges and connected account usage of Stripe products matches the historical behavior of Custom and Express accounts. For complete details, see [the table below](https://docs.stripe.com/connect/direct-charges-fee-payer-behavior.md#fee-payer-behaviors).

We recommend that you monetize payments and Stripe products where the platform is billed by collecting fees from your connected accounts.

You can’t set the payer type to `application_custom` or `application_express` when you create connected accounts. They only apply to accounts created with `type=custom` or `type=express`.

## List of fee behaviors for payer values 

| Product Category                       | account           | application | application_custom | application_express |
| -------------------------------------- | ----------------- | ----------- | ------------------ | ------------------- |
| **Stripe payment processing fees**     | Connected Account | Platform    | Connected Account  | Connected Account   |
| **Interchange Plus Payment Fees**      | Connected Account | Platform    | Platform           | Platform            |
| **Dispute fees**                       | Connected Account | Platform    | Connected Account  | Connected Account   |
| **Instant Payouts**                    | Connected Account | Platform    | Platform           | Platform            |
| **LPM Payment Failure Fees**           | Connected Account | Platform    | Connected Account  | Connected Account   |
| **Premium Payouts**                    | Connected Account | Platform    | Platform           | Platform            |
| **Faster Payouts**                     | Connected Account | Platform    | Connected Account  | Connected Account   |
| **Invoicing and Subscriptions**        | Connected Account | Platform    | Platform           | Platform            |
| **Radar**                              | Connected Account | Platform    | Varies             | Varies              |
| **Terminal Add-ons**                   | Connected Account | Platform    | Connected Account  | Connected Account   |
| **Stripe Tax**                         | Connected Account | Platform    | Platform           | Platform            |
| **3D Secure**                          | Connected Account | Platform    | Varies             | Varies              |
| **Adaptive Acceptance**                | Connected Account | Platform    | Platform           | Platform            |
| **Card Account Updater**               | Connected Account | Platform    | Platform           | Platform            |
| **Checkout Add-ons**                   | Connected Account | Platform    | Platform           | Platform            |
| **Instant bank account verifications** | Connected Account | Platform    | Platform           | Platform            |
| **Stripe currency conversion fee**     | Connected Account | Platform    | Connected Account  | Connected Account   |