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
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:
- separate charges and transfers
Flow of Funds
This is straight from Stripe’s docs. It’s pretty self explanatory.
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/#6 – Stripe Connect workflow explained from different POVs
https://stripe.com/docs/connect/destination-charges – this explains the flow of funds
https://www.indiehackers.com/post/i-work-on-stripe-connect-ask-me-anything-7770395579 – AMA 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-stripe – React 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-eu – VAT MOSS and selling digital goods to the EU and outside of the UE
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-receipts – how to send custom receipts
https://stripe.com/docs/billing/invoices/workflow – invoicing’s workflow