# Managed Risk

Let Stripe protect your platform from losses that result from negative balances on your connected accounts.

Managed Risk allows platforms to assign end-to-end connected account risk operations to Stripe, including responsibility for unrecoverable negative connected account balances. With Managed Risk, Stripe continuously monitors and mitigates credit and fraud risk.

## Managed Risk features

Managed Risk provides the following features:

- **Screening at onboarding:** Stripe runs risk-based onboarding checks to verify compliance and identify fraud and credit risk before an account starts processing payments.
- **Ongoing risk monitoring and mitigation**: Stripe continually monitors risk signals to identify connected accounts that pose credit or fraud risk. In some cases, Stripe might take action to reduce risk exposure.
- **Risk operations and support**: Stripe handles risk reviews and works directly with connected accounts to resolve issues. In most cases, the platform doesn’t take any action.
- **Negative balance liability**: Stripe assumes liability for unrecoverable negative balances on connected accounts. Your platform is only responsible for covering its own balances.
- **Managed Risk visibility**: You can view Stripe’s risk assessments, interventions, and connected account actions in your platform Dashboard.

## Set up Managed Risk

Stripe automatically implements Managed Risk for connected accounts that meet the requirements. To use it, build your integration with the following options:

> #### Platforms with multiple connected account variations
> 
> If your platform has both connected accounts that are compatible with Managed Risk and connected accounts that aren’t compatible, Stripe only implements Managed Risk for the compatible connected accounts.

- **Assign responsibility for negative balances to Stripe**: If you use Accounts v2, set `defaults.responsibilities.losses_collector` to `stripe`. If you use Accounts v1, set `controller.losses.payments` to `stripe`.
- **Request the `card_payments` capability for connected accounts.**
- **Configure compatible payments**: *Direct charges* (A charge type where customers transact directly with a connected account, which is always the merchant of record. With each payment, the connected account pays fees to Stripe and, optionally, to your platform) are automatically compatible with Managed Risk. For *indirect charges* (A charge type where customers transact directly with your platform instead of with a connected account. Indirect charges include destination charges and separate charges and transfers):
  - *Destination charges* (A charge type where customers transact with your platform for products or services provided by a connected account. Your platform pays Stripe fees and immediately transfers funds to the connected account with each payment) with `on_behalf_of` set are in private preview. To request access, contact [Stripe Support](https://support.stripe.com/). (Private preview)
  - Other types of indirect charges aren’t compatible with Managed Risk. If you’re interested in using them, contact [Stripe Support](https://support.stripe.com/) and we’ll let you know if and when they become available.
- **Use compatible onboarding**: Onboard connected accounts using a supported flow:
  - [Stripe-hosted](https://docs.stripe.com/connect/hosted-onboarding.md) or [embedded](https://docs.stripe.com/connect/embedded-onboarding.md) onboarding are automatically compatible with Managed Risk. You can use the Accounts API to prefill data you’ve already collected.
  - Using [API-based onboarding with Managed Risk](https://docs.stripe.com/connect/risk-management/api-managed-risk.md) is in private preview. If you build your own API onboarding flow, you must use [the full Stripe Service Agreement](https://docs.stripe.com/connect/service-agreement-types.md#full). (Private preview)
- **Provide connected accounts with a way to resolve interventions**: Use one of the following options:
  - Provide access to the [full Stripe Dashboard](https://docs.stripe.com/connect/stripe-dashboard.md).
  - Provide access to the [Express Dashboard](https://docs.stripe.com/connect/express-dashboard.md).
  - Provide a [custom interface](https://docs.stripe.com/connect/embedded-risk.md) that includes both the [Notification 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) embedded components, as well as components that allow accounts to add funds and respond to disputes.
  - If using [API-based Managed Risk](https://docs.stripe.com/connect/risk-management/api-managed-risk.md), provide a custom interface that informs connected accounts of interventions and allows them to respond. (Private preview)
- **Use Stripe Radar**: Enable [Radar for your connected accounts](https://docs.stripe.com/connect/radar.md).
- **Treasury for platforms**: If you use Treasury for platforms, you must enable [Prebuilt embedded finance](https://docs.stripe.com/treasury/connect/prebuilt-embedded-finance.md). (Private preview)

When using Managed Risk, you can customize your connected account interface and onboarding flow, subject to certain restrictions. For example, if you provide a Stripe-hosted Dashboard, you can’t remove the ability for a connected account to manage disputes.

### 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.

## How connected accounts interact with Managed Risk

For most connected accounts, Managed Risk operates in the background, rarely requiring direct interaction with Stripe. If Stripe needs additional information, or takes a risk-related action, we notify the connected account and provide clear steps to resolve the issue.

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 to the Express Dashboard

> #### Preview API version required with the Express Dashboard
> 
> Combining Express Dashboard access with Stripe responsibility for negative balances is in [public preview](https://docs.stripe.com/release-phases.md). Use the current preview version string (`2026-09-30.preview`) in your Stripe SDK configuration when you create connected accounts.

Stripe notifies your connected accounts of any risk interventions through email and a notification in their [Express Dashboard](https://docs.stripe.com/connect/express-dashboard.md). Connected account owners can respond directly to interventions in their Dashboard or through email. They can also review and track their outstanding interventions in their Express Dashboard on the home page or the **Tasks and activity** page.
![Express activity page.](https://b.stripecdn.com/docs-statics-srv/assets/express-activity-page.00c5a50b903c4e61b35f6bb9bc3f8762.png)
![Express dashboard form.](https://b.stripecdn.com/docs-statics-srv/assets/express-dashboard-form.c71fc7105af798d46e91f8e1214f03f6.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.

### Connected accounts using API-based Managed Risk

With [API-based Managed Risk](https://docs.stripe.com/connect/risk-management/api-managed-risk.md), which is in private preview, your platform owns communications and Stripe doesn’t email your connected accounts directly. (Private preview) When Stripe identifies a potential risk or compliance concern on one of these connected accounts, it creates a risk intervention. These interventions appear as requirements on the `Account` object and are published through `account.updated` or `v2.core.account[requirements].updated` webhook events. When using API-based Managed Risk, your platform must build systems to monitor these interventions and notify connected accounts to take action.

## Risk monitoring and mitigation

Stripe continually monitors risk signals (KYC, transaction data, and so on) to identify connected accounts that might pose credit or fraud risks. We use both automated processes (AI models) and manual Risk team reviews. We might respond to certain signals (such as elevated losses, spikes in chargeback rates, or refunds) by taking targeted action to reduce risk exposure, possibly including:

- **Changing capabilities**: Stripe might slow or pause payouts, or pause the connected account’s ability to process charges.
- **Holding reserve funds**: Stripe might [hold a reserve](https://support.stripe.com/questions/reserves-frequently-asked-questions) on the connected account’s balance, either a fixed amount or a percentage of transaction amounts.
- **Offboarding**: In the extreme case that a business poses significant risk, Stripe might deactivate the connected account.

## 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 or Treasury, 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.