Collect application fees
Charge merchants a transaction fee for payments through your platform.
Collect fees
As a platform, you can charge your connected accounts a portion of each transaction in the form of application fees. You can set application fee pricing in the following ways:
- Use the Platform Pricing Tool to set and test pricing rules. This no-code feature in the Stripe Dashboard is currently only available for platforms responsible for paying Stripe fees.
- Specify application fees directly in a PaymentIntent. Fees set with this method override the pricing logic specified in the Platform Pricing Tool.
Your platform can take an application fee with the following limitations:
- The value of
application_must be positive and less than the amount of the charge. The application fee collected is capped at the captured amount of the charge.fee_ amount - There are no additional Stripe fees on the application fee itself.
- In line with Brazilian regulatory and compliance requirements, platforms based outside of Brazil with Brazilian connected accounts can’t collect application fees through Stripe.
- The currency of
application_depends upon a few multiple currency factors.fee_ amount
The resulting charge’s BalanceTransaction includes a detailed fee breakdown of both the Stripe and application fees. To provide a better reporting experience, collecting a fee generates an ApplicationFee object. Use the amount property on the ApplicationFee object for reporting.
You can view application fees in the Collected fees section of the Dashboard.
Caution
Application fees for direct charges are created asynchronously by default. If you expand the application_ object in a charge creation request, the application fee is created synchronously as part of that request. Only expand the application_ object if you must, because it increases the latency of the request.
To receive notifications of asynchronously created ApplicationFee objects, listen for the application_fee.created webhook event.
Net settlement
By default, Stripe uses net settlement for payments. That means we deduct your application fees from each transaction before its funds settle in the connected account’s balance. For example, for a charge of 10 USD with a 1.23 USD application fee, Stripe transfers 1.23 USD to your platform account and 8.77 USD to the connected account.
If you process payments in multiple currencies, read how Connect handles currencies.
Next steps
- If you plan to charge a subscription fee for using your platform, learn how to use Billing to charge a service fee.
- When your connected accounts can accept payments and you’ve configured your monetization, set up payouts so your connected account can transfer their Stripe balance to their external account.
- Handle application fee refunds