Disputes on Connect platforms

For connected accounts that use direct charges and where your platform isn’t liable for negative balances (including Standard accounts), those accounts handle their own disputes. The disputed funds are taken from their balance, not the platform’s.

For connected accounts where your platform is liable for negative balances (including Custom and Express accounts), you’re ultimately responsible for any disputes involving those accounts.

For direct payments on connected accounts where your platform is liable for negative balances, Stripe debits disputed amounts and fees from that account’s balance. However, your platform account is ultimately liable. If Stripe can’t debit the disputed amount and fee from the connected account, Stripe debits it from the platform account.

For destination charges and separate charges and transfers, with or without on_behalf_of, Stripe debits dispute amounts and fees from the platform account. When that happens, the platform can attempt to recover funds from the connected account by reversing the transfer through the Dashboard or by creating a transfer reversal.

If there is a negative balance on the connected account, Stripe attempts to debit its card issuer account only if debit_negative_balances is set to true.

In case of a won dispute, your platform might want to transfer the funds back to the connected account because the transfer was reversed earlier. If your platform has an insufficient balance, the transfer fails. To prevent an insufficient balance error, you can add funds to your Stripe balance.

To automate dispute management and handle chargebacks, browse Fraud Stripe Apps on the App Marketplace.