Stripe Connect – building a platform

Stripe Connect Introduction

Stripe Connect enables anyone to start up their online business using “marketplace” business model. That is a model where there is a platform that attracts two or more groups invoved as well in one purchase. Think Airbnb, Uber, eBay or Amazon. Why two or more? Because in case of Uber for instance, you can split the fare among more passengers.

A dashboard for vendors

Going straight into it – integrating with our website

https://stripe.com/docs/connect/standard-accounts#integrating-oauth

Charging

You can choose the way you create charges (https://stripe.com/docs/connect/charges#choosing-approach). It depends, whether platform is involved in the transaction (Lyft, Airbnb) or not (Shopify or Squarespace). Another factor is whether all the sides of transaction are known at the time of charge or not, whether the transfer is done at the time of charge. You can combine the approaches. Here they are:

  • direct
  • destination
  • separate charges and transfers

Destination charges

https://stripe.com/docs/connect/destination-charges

Flow of Funds

This is straight from Stripe’s docs. It’s pretty self explanatory.

Pricing

https://stripe.com/connect/pricing

Glossary

Platform – think Uber, Airbnb, eBay – generally the middle man that hosts the web app and manages the “connected accounts” (see “Connected account“)

Connected account (also “account”) – created usually when a vistor of the platform’s website signs up, used verify the identity of the user and manage the flow of funds from/to the visitor. It is an account that has a unique “id” and it is hosted by Stripe. There are three types of accounts: “Standard, Express, Custom“.

Links to resources concerning Stripe Connect and marketplace sales process

About Stripe Connect

https://stripe.com/docs/connect/accounts – types of accounts that can be created via Stripe

https://stripe.com/docs/connect/charges – create charges using Stripe API. That’s

https://wedevs.com/docs/dokan/modules/how-to-install-and-configure-dokan-stripe-connect/ – an instruction on how to integrate Dokan with Stripe Connect – very visual with a lot of screenshots

https://apiko.com/blog/how-to-integrate-stripe-connect-with-your-marketplace-for-c-c-payments/#6Stripe Connect workflow explained from different POVs

https://stripe.com/docs/connect/destination-chargesthis explains the flow of funds

https://www.indiehackers.com/post/i-work-on-stripe-connect-ask-me-anything-7770395579AMA with a PM of Stipe Connect on Indie Hacker’s – you can hit him up on twitter

Dev Libraries for Stripe Connect

https://github.com/tipsi/tipsi-stripeReact Native library

Taxes and Stripe Connect

https://stripe.com/docs/orders/tax-integration (DEPRECATED API that would apply sales tax or VAT automatically – but shedding light on the problem)

https://www.sharetribe.com/community/t/vat-on-transaction-fee/1808/3 – maybe you can get something out of there

https://paddle.com/ – this service provides sales tax calculation service and “You are indemnified from all your sales tax

Taxes in general

https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers#businesses-established-outside-the-euVAT MOSS and selling digital goods to the EU and outside of the UE

Testing Stripe

https://stripe.com/docs/connect/testing – you can use Stripe before establishing a business first – in a test mode. I’d recommend that you first talk to accountant though.

Invoices and receipts

https://stripe.com/docs/recipes/sending-custom-email-receiptshow to send custom receipts

https://stripe.com/docs/billing/invoices/workflowinvoicing’s workflow

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