Implementing Fund Segregation in Stripe Connect
AI Summary
An exploration of fund segregation in Stripe Connect using allocated balances to separate seller funds from platform operational revenue. The article covers the motivation behind fund segregation due to upcoming PSD3 regulations, how to configure PaymentIntents and transfers using the allocated_funds parameter, and handling edge cases like refunds, disputes, and transfers.
Key Takeaways
- Set allocated_funds: { enabled: true } during PaymentIntent creation to isolate funds at capture time.
- Use the source_transaction parameter on transfer objects to explicitly draw funds from a specific payment's allocated balance.
- Refunds automatically draw from remaining allocated balances first before touching the main platform account balance.
Why it matters
As regulations like PSD3 and FCA client money rules tighten, platforms and marketplaces must demonstrate that customer and seller funds are properly safeguarded and segregated from operational capital to maintain compliance and eliminate systemic financial risks.
Conversation 0
Be the first to share your perspective.