Disputes on Connect platforms

You can view all disputes filed against your platform and connected accounts in your Dashboard. When one of your connected accounts receives a dispute against a payment, the charge type and negative balance responsibility determine:

• Whether you or your connected account responds to that dispute to accept or challenge it.
• Which account Stripe debits for the chargeback and fees.

This guide describes how Stripe processes disputes for each charge type and how you can handle them.

Direct charges

For connected accounts that use direct charges, Stripe always attempts to debit disputed amounts from the connected accounts balance. However, if Stripe cant debit the amount, ultimate responsibility depends on whether Stripe or the platform is responsible for negative balances.

For dispute-related fees, responsibility depends on your connected account options. The following table shows whether Stripe debits dispute-related fees from the platform or the connected account:

Destination and separate charges and transfers

For destination charges and separate charges and transfers, with or without on_behalf_of, Stripe debits dispute amounts and fees from your platform account.

We recommend setting up a webhook to listen to dispute created events. When that happens, you can attempt to recover funds from the connected account by reversing the transfer through the Dashboard or by creating a transfer reversal.

If the connected account has a negative balance, Stripe attempts to debit its external account if debit_negative_balances is set to true.

If you challenge the dispute and win, you can transfer the funds that you previously reversed back to the connected account. If your platform has an insufficient balance, the transfer fails. Prevent insufficient balance errors by adding funds to your Stripe balance.

To automate dispute management and handle chargebacks, browse Fraud Stripe Apps on the App Marketplace.

Provide Connect embedded components to allow your connected accounts to respond to disputes

Your connected accounts can use Connect embedded components to manage disputes from within your site.

The following components support dispute management:

• Payments component: Displays all of an accounts payments and disputes.
• Disputes list component: Displays all of an accounts disputes.
• Disputes for a payment component: Displays the disputes for a single specified payment. You can use it to include dispute management functionality on a page with your payments UI.

Smart Disputes

If you use Smart Disputes, you can enable Smart Disputes auto-responses for your connected accounts.