How to properly integrate Stripe Connect

Hey there.

I am building a booking system where my users will have properties with accommodations. The guests will be charged when making a booking. I will implement stripe connect in order to charge the guests the booking price and then send the money to the users.

I see in the stripe docs there are 2 ways of doing so:

- A: Collect payments then pay out

- B: Enable other businesses to accept payments directly

In case someone has experience in this or a similar situation
Which one is the best for my use case?
What are the main things the connected account can do in each case?
What should I take into account if I choose one or the other?
Can I move from one to another later?

There's a bunch of members using Stripe Connect. If you don't get an answer here, I recommend reaching out to them.…

I did this, for 2 different clients. My advice would be to have a fallback option as not all the property managers/owners are willing to have a Stripe account

Thanks Rod for the tip. We already have a "Pay at the property" fallback 😉

Not financial advice:
If it were me, I'd do option B. The reason is that since you don't have full understanding of the types of businesses booking events and how their financial work, you can put your stripe account at risk using option A. My understanding is that stripe can suspend your account if you think that your client is violating their standards.

Obviously if clients need help or for some reason don't want to create a stripe account, perhaps you could create one for them for extra $$ or something. I would just be very careful about money passing through your company unnecessarily. Even if everything is above board. You still can have payment delays, charge-backs and build up large short-term assets and liabilities.

To keep it simple I like businesses where I help facilitate a service X and get paid Y after everyone is happy.

Thanks @closedloop for that great comment. I 100% agree and think will opt for B to abstract my business from the issues of the accounts connected :)