# Managed Risk Let Stripe protect your platform from losses that result from negative balances on your connected accounts. Managed Risk is an end-to-end business risk management solution for platforms where Stripe provides ongoing monitoring and mitigation for credit and fraud risk. Stripe also assumes risk of loss in the event of unrecoverable negative balances on connected accounts. When Stripe manages risk for connected accounts, we monitor risk signals, apply risk interventions in response to observed signals, and seek to recover negative balances. You aren’t liable for unrecoverable negative balances on your connected accounts. ## How it works Managed Risk uses the following core components: - Screening and detection - Monitoring and mitigation - Stripe negative balance liability ### Screening and detection When you onboard new connected accounts to your platform, Stripe conducts up-front risk-based onboarding checks to verify adherence to our compliance and regulatory standards and help identify fraud and credit risk signals. You can implement additional onboarding verifications to meet relevant regulations for products or services you or your connected accounts offer. ### Monitoring and mitigation We perform ongoing monitoring of risk signals (KYC, transaction data, and so on) to identify connected accounts that might pose credit or fraud risks. We use automated processes, such as AI models and Stripe risk team manual reviews. We automate interventions against risky businesses to reduce fraud and risk of loss. For example, Stripe processes might flag a risky connected account in response to a number of signals such as elevated losses, spikes in chargeback rates, or refunds. In response, we might take targeted action on that account to reduce risk exposure, including: - **Changes to capabilities**: Stripe might slow or pause payouts, or pause a connected account’s ability to process charges. - **Reserves**: Stripe might hold a reserve on the connected account balance. It can be a fixed amount or a percentage of transaction amounts. - **Offboarding**: In the extreme case that a business poses significant risk to Stripe or your platform (ToS violations, fraud, and so on), Stripe might deactivate the connected account. ### Stripe negative balance liability When you use Stripe negative balance liability for connected accounts, Stripe assumes the risk of losses from unrecoverable negative balances on those connected accounts. In particular, Stripe doesn’t deduct unrecoverable negative connected account balances from your platform account. ## Availability You must meeting the following requirements to use Managed Risk: - **Radar**: You must use Radar on connected account transactions. (For users who pay Stripe’s listed prices for payments processing, Radar is included at no additional cost.) - **Charge type**: You must use [direct charges](https://docs.stripe.com/connect/direct-charges.md). - **Connected account onboarding**: You must onboard connected accounts using Stripe-hosted onboarding or the embedded onboarding component. - **Connected account dashboard**: Some risk interventions require connected accounts to update their business information. You must provide connected accounts where Stripe is liable for negative balances with either: - Access to a Stripe-hosted Dashboard - The Stripe [Notifications Banner](https://docs.stripe.com/connect/supported-embedded-components/notification-banner.md) and [Account Management](https://docs.stripe.com/connect/supported-embedded-components/account-management.md) components embedded in your interface. - **Connected account capability and service agreement**: When creating connected accounts, you must request the [card_payment](https://docs.stripe.com/connect/account-capabilities.md#card-payments) capability and the [full](https://docs.stripe.com/connect/service-agreement-types.md#full) Stripe Service Agreement type. ## Configuration Define how your connected accounts interact with Managed Risk by configuring their onboarding flow and their dashboard or other platform interface. ### Connected account onboarding flow You can onboard connected accounts using any of the following methods: - [Stripe-hosted onboarding](https://docs.stripe.com/connect/hosted-onboarding.md) - [Embedded onboarding component](https://docs.stripe.com/connect/embedded-onboarding.md). - [Stripe APIs](https://docs.stripe.com/connect/risk-management/api-managed-risk.md) In all cases, Stripe collects the required information for risk management. You can also prefill any information that you’ve previously collected in your onboarding flow using the Accounts API, even if you use the hosted or embedded onboarding options. ### Connected account dashboard or platform interface Most connected accounts are likely to have few, if any, interactions with Stripe risk management. However, in the event that Stripe requires additional risk-related information from one of your connected accounts, Stripe notifies your connected account and provides a pathway for them to respond to and resolve the intervention. To resolve an intervention, a connected account owner might provide additional KYC information, complete a form, or provide other documentation. Stripe reviews their response to assess whether to lift, revise, or continue the intervention. ### Connected accounts with access to the full Stripe Dashboard Stripe notifies your connected accounts of any risk interventions through email and a notification in their Stripe Dashboard. Connected account owners can respond directly to interventions in their Dashboard or through email. They can also review and track their outstanding interventions on their Dashboard home page. ![Account review page.](https://b.stripecdn.com/docs-statics-srv/assets/account-review.20b7ec073604c84aa00ea051deaafc5b.png) ![Public business information page.](https://b.stripecdn.com/docs-statics-srv/assets/public-business.4b4f2f2fe1a4343c4be5704a21c98626.png) ### Connected accounts with access only to embedded components Stripe notifies your connected accounts of any risk interventions through [a notification in the Notifications Banner embedded component](https://docs.stripe.com/connect/supported-embedded-components/notification-banner.md) and a co-branded email that links to your embedded component. Connected account owners can respond directly to interventions through the Notifications Banner. They can also review and track their outstanding interventions using the Notifications Banner. ## Fees for Managed Risk The fees for Managed Risk depend on the economic model: - **Revenue share**: For connected accounts where the platform uses a revenue share economic model for payments processing, including Standard accounts, we include Managed Risk at no additional cost. - **Buy rate**: For connected accounts where the platform uses a buy-rate economic model, Managed Risk fees depend on the pricing arrangements: - **Listed pricing**: For platforms that pay listed pricing for payments processing and Connect fees, we include Managed Risk at no additional cost. - **Negotiated pricing**: For platforms with negotiated pricing for either payments processing or Connect fees, Managed Risk incurs additional fees. For more information, contact Stripe Sales.