In Stripe Connect, what is a connected account?

In Stripe Connect, what is a connected account?

• A. The platform's main account
• B. Each business that receives funds from the platform
• C. An account for tax compliance
• D. The merchant's personal account

Answer: (B)

In Stripe Connect, a connected account is the Stripe account that belongs to the party receiving funds from the platform—the business or individual that uses the marketplace to sell goods or provide services. The platform collects payments and then transfers money to these connected accounts, which can be onboarding as different types (standard, express, or custom) depending on how much control the platform and the merchant want. This is different from the platform’s own main account, which is where the platform holds its own funds and processes fees. The connected account represents the recipient in the payment flow, not the platform itself.

In Stripe Connect, a connected account is the Stripe account that belongs to the party receiving funds from the platform—the business or individual that uses the marketplace to sell goods or provide services. The platform collects payments and then transfers money to these connected accounts, which can be onboarding as different types (standard, express, or custom) depending on how much control the platform and the merchant want. This is different from the platform’s own main account, which is where the platform holds its own funds and processes fees. The connected account represents the recipient in the payment flow, not the platform itself.