In Stripe Connect direct charges, where does the money initially land?

In Stripe Connect direct charges, where does the money initially land?

• A. The connected account
• B. The platform balance
• C. The merchant's main account
• D. The customer

Answer: (A)

In Stripe Connect direct charges, the payment is processed on behalf of the connected account, so the funds land in that connected account’s balance first. The platform doesn’t hold the money by default; if you want the platform to take a fee, you set an application_fee_amount and Stripe transfers that portion to the platform, while the rest remains in the connected account for payout. This setup is different from destination charges, where funds first go to the platform’s balance before being sent to the connected account.

In Stripe Connect direct charges, the payment is processed on behalf of the connected account, so the funds land in that connected account’s balance first. The platform doesn’t hold the money by default; if you want the platform to take a fee, you set an application_fee_amount and Stripe transfers that portion to the platform, while the rest remains in the connected account for payout. This setup is different from destination charges, where funds first go to the platform’s balance before being sent to the connected account.