Disputes on Connect platforms
Learn about the dispute responsibilities on Connect platforms.
Direct charges
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 the connected account’s balance. However, your platform is ultimately liable. If Stripe can’t debit the disputed amount and fee from the connected account, Stripe debits it from your platform account.
Destination and separate charges and transfers
For destination charges and separate charges and transfers, with or without on_
, Stripe debits dispute amounts and fees from your platform account.
We recommend setting up a webhook to listen to dispute created events. When that happens, you can attempt to recover funds from the connected account by reversing the transfer through the Dashboard or by creating a transfer reversal.
If the connected account has a negative balance, Stripe attempts to debit its external account if debit_
is set to true
.
If you challenge the dispute and win, you can transfer the funds that you previously reversed back to the connected account. If your platform has an insufficient balance, the transfer fails. Prevent insufficient balance errors by adding funds to your Stripe balance.
Common mistake
Retransferring a previous reversal is subject to cross-border transfer restrictions, meaning you might have no means to repay your connected account. Instead, wait to recover disputed cross-border payment transfers for destination charges with on_
until after a dispute is lost.
To automate dispute management and handle chargebacks, browse Fraud Stripe Apps on the App Marketplace.