How to Collect Transaction Fees in United States Using Stripe Connect (Step-by-Step Guide)
For a marketplace, SaaS platform, or multi-vendor store to be successful, transaction fees must be automatically collected. You may easily collect platform fees while paying out to sellers or service providers when you use Stripe and Stripe Connect.
In this step-by-step guide, how┬аStripe Connect performs and how to set up payment┬аcollection for your platform in this comprehensive guide.
What Is Stripe Connect?
Stripe Connect is a payment network tailored to marketplaces and companies that must: тАв Receive payments from clients тАв Payments divided among several parties тАв Collection of service fees or platform commissions тАв Oversee payments to linked accounts
ItтАЩs widely used by marketplaces, booking platforms, crowdfunding websites, and SaaS products.
How Stripe Connect Handles Transaction Fees
There are three primary ways to collect fees with Stripe Connect:
Application Fees: Suggested for Publications
The entire price is charged to the customer, and your platform fee is immediately
reduced before the remaining funds are transferred to the relevant account.
Destination Charges
Your platform generates the charge, and money is moved to the associated account less your fee.
Different Transfers and Charges
After deducting your commission, you physically send money to sellers after receiving the complete amount.
The simplest and most practical approach for the majority of marketplaces is to combine application fees with destination charges.
Step-by-Step: How to Collect Transaction Fees Using Stripe Connect
Step 1: Set Up Your Stripe Account
Register on Stripe
On your dashboard, enable Stripe Connect
Full identity confirmation
Customise payment and branding options
Step 2: Select the Suitable Account Category
Three account types are available on Stripe Connect:
Common: Stripe manages the majority of compliance
Express: The platform offers easier onboarding and more power.
Custom: Complete power over rewards and user experience
The ideal balance between simplicity and versatility is provided by Express accounts for a great deal of businesses and marketplaces.
Step 3: Connected Account Onboarding
Sellers and service providers must be onboarded as linked accounts. Typical onboarding comprises:
Business information
Details about a bank account
KYC, or identity verification
Stripe offers hosted onboarding links to make this process easier. Step 4: Use the Application Fee to Create a Payment
This is the main justifications:
The client pays $100.
A 10% platform fee ($10) is collected by you.
After deducting Stripe processing costs, the seller gets $90.
An Example of Intellectual Flow
Specify a payment intent.
Add the following:┬а
o Application_fee_amount тЖТ Your fee o Transfer_data[destination] тЖТ Affiliated account number Stripe automatically:
Deducts the platform cost.
Remaining funds are sent to the seller.
Manages payout flow and compliance.
Step 5: Handle Stripe Processing Fees
Stripe will take out a separate processing fee. You can choose whether:
Stripe fees are taken into account by the platform
Stripe fees are paid by the seller
The client pays more for services
The majority of marketplaces charge suppliers Stripe processing fees.
Step 6: Integration Testing
Before launching:
Set the device to Stripe test mode.
Display both successful and unsuccessful deals.
Test complaints and refunds
Check the payment schedule.
Stripe offers card numbers and test account IDs for sandbox testing.
Step 7: Go Live and Monitor Transactions
When the testing is finished:
Change to live API keys.
Use the Stripe Dashboard to track transactions.
Configure webhook events for:┬а o Payments that are successful o Failure to payment o Refunds o Updates on payouts
Webhooks make sure that your platform keeps up with payment transactions fees. An example Use Case: Commission Structure for Marketplaces
Suppose you operate a marketplace for services:
$200 is the service fee
15% is the platform commission
The platform earns $30
$170 is given to the seller (less Stripe fees)
Stripe Connect automates this procedure, reducing the need for manual payout calculations.
Best Practices for Collecting Transaction Fees
тЬЕ Clearly explain costs to vendors тЬЕShow customers clear pricing тЬЕ Use webhooks to automate the reconciliation process тЬЕ Update compliance and KYC documentation up to date┬а тЬЕ Carefully implement refund logic┬а Common Mistakes to Avoid┬а тЭМ Avoiding dispute management┬а тЭМ A failure to handle refunds proportionately┬а тЭМ Utilising the incorrect Connect account type┬а тЭМ Not testing edge cases (partial refunds, failed payouts)
Why Use Stripe Connect for Fee Collection?
Commission handling which is fully automated
Support for payments worldwide
Embedded tools for compliance
Scalable for businesses and startups
Adaptable models of revenue generation
Whether you're creating a gig economy software, SaaS billing platform, or marketplace, Stripe Connect makes sophisticated payment split┬аand easy┬аcommission collection.
Final Thoughts
Most online marketplaces depend on the collection of transaction fees. You can simplify revenue collection while maintaining seamless and legal payouts by utilising Stripe Connect's application fees and destination costs.
If you're establishing a platform and need assistance correctly integrating Stripe Connect, working with Kodrite professional developers can save a lot of time and help you prevent costly mistakes.
