Destination charge

A destination charge is a Stripe Connect model where the platform creates the charge on the buyer, but the funds route straight through to a single connected seller’s account, with the platform’s fee taken off the top. It is the simplest Connect charge type for a marketplace sale that has exactly one seller.

How a destination charge works

1. The platform creates the charge. The payment appears in the platform’s balance, and the platform is the merchant on the transaction.
2. Part of it transfers immediately. The seller’s share moves to one connected account as part of the same charge.
3. The platform keeps its fee. Either the fee is deducted from the amount transferred, or the full amount is transferred and the fee is collected afterwards.

The platform chooses “whether some or all of those funds are transferred, and whether to deduct an application fee” (Stripe, charge types).

Destination charges vs separate charges and transfers

	Destination charge	Fynex split rule	Separate charges and transfers
Sellers per payment	One (“a single connected account”)	Several, plus partners and fees	Several
Transfer timing	Immediately, as part of the charge	On your release rule	Whenever the platform creates the transfer
Split logic	One fee per charge	A per-seller rule, edited from the dashboard	Your code computes each transfer
Refunds and chargebacks hit	The platform’s balance	Traced back to the original order	The platform’s balance
Integration effort	Low	Configuration	”More complex”, in Stripe’s words
Stripe’s examples	Rideshare apps, home-rental and services marketplaces	—	Multi-seller baskets, delivery apps

Sources: Stripe’s charge types and destination charges documentation.

Why it matters

A destination charge is clean when a sale has one seller and one platform fee: one charge, one transfer, one fee.

It runs out of road the moment a payment owes two sellers, a referral partner and your commission. Stripe’s model for that case is separate charges and transfers, which means writing the transfer logic yourself. Two further limits are worth knowing:

• The platform carries the risk. Stripe debits the platform’s balance for refunds and disputes on destination charges. The platform then reverses the transfer to recover the money from the seller.
• Cross-region flows are limited. Destination charges support cross-region funds flows between platform and connected account only in certain regions, unless the charge is made on_behalf_of the connected account.

On cost, when the platform sets its own pricing, Connect charges $2 per monthly active account and 0.25% + 25¢ per payout in the US, on top of card processing (Stripe Connect pricing).

How Fynex does it

Fynex is built for the multi-party case from the start. One incoming payment is split across many recipients in a single run: each seller, each partner, your own take rate, each in their own currency, by rule or per transaction. Stripe can keep processing the cards; the split, the payouts and the reconciliation back to Xero or QuickBooks run above it. See Fynex vs Stripe Connect and split payments for platforms.