Which account type is associated with platform liability for negative balances?

Which account type is associated with platform liability for negative balances?

• A. Custom or Express
• B. Standard
• C. Restricted
• D. All types

Answer: (A)

In Stripe Connect, who bears responsibility for a negative balance depends on how much control the platform has over funds. Custom and Express accounts put the platform in charge of the payments flow and the funds involved with the connected accounts. Because the platform handles payouts, holds funds, and guarantees the flow of money to the end recipients, it also bears responsibility for shortfalls or negative balances that arise. In other words, if the connected account runs a deficit, the platform is the party liable to cover that deficit in these account types. By contrast, Standard accounts are more self-contained for the connected account owner; the platform doesn’t guarantee the connected account’s balances in the same way, so the liability for any negative balance does not rest on the platform in the same manner. That makes the “Custom or Express” pairing the correct association for platform liability in this context.

In Stripe Connect, who bears responsibility for a negative balance depends on how much control the platform has over funds. Custom and Express accounts put the platform in charge of the payments flow and the funds involved with the connected accounts. Because the platform handles payouts, holds funds, and guarantees the flow of money to the end recipients, it also bears responsibility for shortfalls or negative balances that arise. In other words, if the connected account runs a deficit, the platform is the party liable to cover that deficit in these account types.

By contrast, Standard accounts are more self-contained for the connected account owner; the platform doesn’t guarantee the connected account’s balances in the same way, so the liability for any negative balance does not rest on the platform in the same manner. That makes the “Custom or Express” pairing the correct association for platform liability in this context.