Stripe API and Widholding Funds

Published 1 month ago by PatrickL

I have a question related to the Stripe API for PHP. What I am building is a platform marketplace, quite similar to an e-commerce platform using the Stripe Connect service as a payments provider. One of the requirements for this platform is the application widholds the funds of a customer’s purchase until the seller fulfills said purchase. This is mostly to protect the platform from fraudulant activity.

Is there a way to implement this kind of mechanism or can Stripe handle this automatically?

shez1983

i think this can be done - so when buyer buys something the money goes into YOUR stripe account - after the buyer has recieved and notified you/site you can then transfer money to seller..

you are protecting the buyer but who is protecting the seller? buyer can also fake and say i didnt recieve anything! (just a thought)

PatrickL

@shez1983 I have it set up so that both the buyer and seller have to agree that the transaction is completed. This can be initiated by either party. Additionally, there are other measures in place to deal with users that try to abuse the system.

Am I going to need two separate Stripe Accounts to do this though? Like, one to collect transaction fees and the other to hold these funds?

AlbertLabarento

To handle this automatically, implement a scheduler for Transferring funds from a Successful Charge but only when both parties agree with the transaction.

PatrickL

@AlbertLabarento Alright. That makes sense. Would it be a good idea to use a separate stripe account to handle this, and use my primary one to collect fees (revenue source)? Or is it okay to clump them into one?

AlbertLabarento

@PatricL You can do this for only one account, Stripe is I think flexible enough to any case scenario, in your case you mean revenue source = you application fee?, for example for every transfer there will be an application fee of 10% that will be deducted to the seller. But before the transfer you must assure that both parties resolve their transaction, if not, refund the charge back to the buyer.

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