What do you think, which is the most exciting yet scariest technical hurdle in launching a business and taking it to the next level? Yes, payments. Most of the large businesses are multi-functional and have a lot of moving parts, due to which it becomes challenging to handle the payments.
Organizations hire highly skilled people to handle all scales of payment, but it consumes a lot of time and money. Besides all this, there are still possibilities of making errors. Well! If you don't want any challenges in accepting payments at any scale, then it's the right time to get familiarized with the easiest way to facilitate payments; and that's where Stripe connect marketplace comes into play.
Now you might be pondering over what exactly Stripe Connect is all about and how you can make the best use of it? Need not fret! In this article, I will share an in-depth about Stripe connect and how you can create a stripe connect marketplace account without any hassle.
What is Stripe Connect?
Stripe Connect is basically a set of APIs and tools that are used to route the payments between recipients, businesses, and customers who need to be paid. It is an unbelievably and enormous process that is ideal for both software platforms and marketplaces. By using Stripe Connect, you don't have to worry about making accurate payments as it will send payouts to recipients on its own.
This powerful money router and payout engine allow you to track balanced amounts in the platform's account. With Stripe connect tool, you can pay your clients directly to their bank accounts with one click.
Now that you know what stripe connect is all about, now, let's take a look at the steps that demonstrate how to accept payments and transfer the funds directly to sellers or service providers' bank accounts. You can use the below-added concept in different applications as per your requirement.
How to Create Connected account with API
Let's get started…
- To begin, create a stripe account by visiting https://stripe.com/.
- It's time to sign up or do Stripe Connect login. After signup is done, you will be redirected to the Stripe Connect dashboard where we will get keys.
- Now, click on API Keys and set these keys in your ENV file.
- Once the setup is done on your system, then it's time to create a connected account. Now just navigate to your dashboard and click on the tab named connected account.
- After clicking on this, you will redirect to the dashboard where you will see all your connected accounts as shown below;
Basically, Stripe Connect offers three different types of accounts, including custom, standard, and express. Organizations choose different Stripe Connect account types as per their needs and requirements.
Now, let's learn how you can create a custom-connected account with API.
Steps to Create Custom Connected Account with API
Most businesses prefer using a custom stripe account as it is totally invisible to the account holder. All the interactions done with the user is visible by you and the stripe Connect platform. Even the account verification information collected is from your end.
With the help of custom accounts, you can easily update the connected account details and settings by using API from payout schedule to bank account management. Now that you know that custom account holders cannot log into Stripe, therefore it totally depends on you to build the onboarding flow, communication channels, and user dashboard reporting functionality.
How to Create a Custom Account?
- For creating a custom account, navigate to the content creation request and set the type to custom. Here you have to provide the country and appropriate capabilities.
- After creating your account, it's time to retrieve your account and update all the required information.
- To indicate Stripe that a connected account has accepted the Stripe Connected Account Agreement, perform an update account call, provide the acceptance date (as a timestamp) and user's IP address. Look at the below-added code to make the update.
- Once your account is updated, you can easily make the payments and perform the transactions.
- Now, click on your account.
- You will redirect to the particular account just like below add screenshot:
- Now, check whether your account is enabled or not. For payment and transfer, your account should enable payout and payments. Say if you see a green tick, then it means that your account is enabled, and you can proceed with another task.
- Now, you need to create an external account for the connected account where the connected account will receive the payment.
Let's have a deeper insight into how to create a connected external account.
How to Create a Connected External Account?
- Once your custom account is enabled, it's time to connect it with an external account where your entire amount will be transferred.
- Here you will notice that the currency is INR. Remember, if you do not define any currency, then it will be updated by default as per your region.
- Congratulations, you have successfully done all the settings and fill in the required information. Now, you are ready to make the payments. Now, you need to make a payment method, after which you can easily make payments and transfer money to all your connected accounts. Just as it is shown in the below-added screenshot-
- Now, with the help of connecting, you can easily make the charges directly on the connected account and process the fees.
- It is vital to make you familiar that direct charges are highly responsible for standard accounts. And the connected account is responsible for chargebacks, refunds, and stripe fees.
Furthermore, if you want to proceed with other types of connected accounts, you can always go through the documentation and proceed with it. His entire process is implemented on the Guest post engine.
You can follow this video and proceed accordingly-
Also, you can get updates on your payment status by clicking on the payment tab added on the left slide of the page.
In a crux
Indeed, setting up a stripe connect marketplace account is not easy, but if you follow the above steps properly, then you can easily do the needful.
Now that you have clear knowledge, it's time to implement and see how it happens with your account. So, what are you waiting for? It's time to make secure transactions without any hurdles.