Keeping funds where they belong: Implementing fund segregation in Stripe Connect

Summary

Marketplaces using Stripe Connect’s separate charges and transfers can pool seller funds with platform revenue, exposing them to payouts, unrelated disputes, fees, refunds, and operational mistakes. In response to anticipated PSD3 changes and tighter Commercial Agent Exemptions, Stripe introduced Segregated Separate Charges and Transfers, which places captured payment funds in an allocated balance that cannot fund payouts and can only be transferred to connected accounts. The integration enables allocated_funds on PaymentIntents, transfer_group tracking, source_transaction-linked transfers, and application fees collected from the same allocation; balances are inspected through the API. The post also details split transfers, refund and reversal ordering, dispute handling, prerequisites, and limitations including card-only support, preview-header requirements, and sandbox-only testing, presenting segregation as a way to make fund flows traceable and operationally safer.

Takeaways

1. 1

   Captured allocated funds remain outside the platform’s available balance, cannot be used for payouts, and can only be transferred to connected accounts. The API exposes per-payment allocated and transferred amounts through the PaymentIntent’s latest charge.

2. 2

   A transfer can use source_transaction to draw from one payment’s allocated balance and application_fee_amount to collect a platform fee. The fee is additive to the transfer amount, and multiple transfers can share an allocation without exceeding the original charge.

3. 3

   Refunds first consume any remaining allocated balance, while transfer reversals return funds there. Dispute fees always debit the platform balance; allocated funds can be moved back to the seller or to the platform depending on the outcome and currency match.