For a standard connected account, how can refunds for direct charges be issued?

For a standard connected account, how can refunds for direct charges be issued?

• A. Listen for the charge.refunded event
• B. Use the automatic refund toggle in Stripe dashboard
• C. Email support to process refund
• D. Create a payment management portal

Answer: (D)

Refunds on direct charges in Stripe Connect must be issued by the owner of the connected account, since the charge actually lives on the connected account’s Stripe balance. A payment management portal is designed to give connected accounts a secure, dedicated interface to review transactions and issue refunds themselves, while the platform can enable and support that workflow without needing to perform refunds directly from the platform’s own account. This approach keeps refunds properly associated with the correct account and provides a clear, auditable process for both sides. Webhooks like charge.refunded only notify you after a refund has occurred; they don’t perform the action. An automatic refund toggle in the Stripe dashboard isn’t a standard, universal control for issuing refunds, and emailing support to process refunds is manual and not scalable for typical business needs. The payment management portal directly addresses the need for a supported, self-service refund workflow for direct charges.

Refunds on direct charges in Stripe Connect must be issued by the owner of the connected account, since the charge actually lives on the connected account’s Stripe balance. A payment management portal is designed to give connected accounts a secure, dedicated interface to review transactions and issue refunds themselves, while the platform can enable and support that workflow without needing to perform refunds directly from the platform’s own account. This approach keeps refunds properly associated with the correct account and provides a clear, auditable process for both sides.

Webhooks like charge.refunded only notify you after a refund has occurred; they don’t perform the action. An automatic refund toggle in the Stripe dashboard isn’t a standard, universal control for issuing refunds, and emailing support to process refunds is manual and not scalable for typical business needs. The payment management portal directly addresses the need for a supported, self-service refund workflow for direct charges.