9th Dec 2021

Exploring Stripe Connect


Written By, Maitri Patel


There are many third-party payment gateways available for automated transactions, and Stripe Connect is one of them. It is highly secure and provides instant split payments charging a fixed percentage of money per transaction.
When using Stripe Connect, you need to create an account for each user that receives money on your platform.
In Stripe Connect, we do not have to worry about whether the payment is accurate or not, Stripe Connect itself sends the payouts to recipients on its own.

What is Stripe Connect?

  1. We can use Stripe Connect in different types of marketplaces like eBusiness, online retails, etc for authorized transactions. Stripe Connect operates tons of confidential data like credit card details, personal data, payment details, etc.
  2. eCommerce software like A-listers, Lyft, Shopify, Woocommerce, Kickstarter, and many more are successfully using Stripe Connect. By the flexibility of their functionality, all these solutions have the special feature of using Stripe.

How does Stripe Connect work?

  1. For using Stripe Connect each user needs an individual Stripe account ( a connected account) for doing transactions in any marketplace.
  2. When new orders are placed using a stripe account, the Stripe Connect Split Payment API instantly splits the amount of orders between sellers and the admin.
  3. All the payment histories of specific stripe accounts are maintained both in the admin/seller panel.

Account types

There are three types of account you can use with Connect, each are designed for different use cases:

  • Standard
  • Custom
  • Express

There are many requirements to consider when choosing an account type, as listed below.

User can access the Dashboard?Yes, full DashboardYes, Express DashboardNo
Integration effort Lowest Low Significantly higher
Integration method API or OAuth API API
Platform can specify payout timing? Yes, with Platform controls YesYes
OnboardingStripeStripePlatform or Stripe

Standard Accounts

  • Standard account holders can access the full dashboard, which allows them to log into the Stripe Dashboard, process charges, and can also disconnect their account from your platform.
  • Standard accounts can use direct charges where buyers transact directly with the seller’s account. Therefore sellers are responsible for Stripe fees, refunds, and chargebacks.
  • Know Your Customer” (KYC) identity verification needs to be done on their own for Standard Accounts, they can do this via their dashboard.

Custom Accounts

  • Most businesses prefer using a custom stripe account as it is totally invisible to the account holder. All the interactions done with the user are visible by you and the Stripe Connect platform. The account verification information is collected from your end.
  • Custom account holders can not access the Dashboard, and Stripe can not contact them directly.
  • Sellers can not log in to their Stripe Connect account and need to provide their platform with their banking details and need to identify the documents.
  • Custom account holders can use destination charges where buyers transact with the platform, but products or services are delivered by the seller account. Payments (after deduction of commission or transaction fees) are automatically split into seller accounts.
  • “Know Your Customer” (KYC) information of user accounts is collected by the platform and submitted via the Stripe API. Collected information may vary based on the capabilities of each account.

Express accounts

  • Express account is a mix option that allows owners to do customisation at some level while Stripe handles the onboarding, verification and account management. It is quicker to implement and also applies the platform fees.
  • Express works best with destination charges or separate charges and transfers.
  • The platform is responsible for handling charges and refunds, which is similar to a Custom account.


  • Instant verification – For approving new users Stripe Connect API follows dynamic Know Your Customer (KYC) checks, real-time screening, and other consents.
  • Smart payouts – Collect commissions, schedule payouts, and automatically transfer funds from buyer to seller immediately. We can track transfer funds manually.
  • Secure – The payment method is globally licensed, complies with PCI DSS Level 1 certification, and tracks technology with instant disablement to prevent fraud users.


  • No mass payments – At a time the admin can not pay to multiple sellers at once in Stripe Connect. Only the admin can pay one seller at a time.


Now you have an overview of stripe connect and different types of accounts. Using stripe connect you can do payment with multiple users and give the functionality, every transaction payment is split between user and admin.

Written By,

Web Developer at Yudiz Solutions Pvt. Ltd