How can I hold all funds in my Stripe Connect platform until a merchant withdraws them?

Below is an approach you can consider along with the relevant documentation links:

Keeping Funds in the Platform Account

You can design your payment flow so that you initially collect all funds into your platform’s Stripe balance. Then, when a merchant requests a withdrawal, you can use Stripe’s Transfers API to move funds from your platform account to the connected (merchant’s) account. This pattern is often implemented using separate charges and transfers. With this pattern, you create a charge on the customer and keep the funds on your platform until you decide to create a transfer to the merchant.

How It Works

1. Charge Creation:
   You create a charge on your platform’s account. The entire amount comes in, which means your platform holds the funds initially.

2. Delayed Payout via Transfers:
   When the merchant opts to withdraw funds, you create a transfer (either full or partial) to their connected account. This gives the appearance (and operational behavior) of “available funds” for the merchant even though they haven’t received the money until you initiate the transfer.

3. Control Over Payout Timing:
   By using separate charges and transfers, you control exactly when money is moved to the merchant, allowing you to show available balances and even apply additional business logic if needed.

Integration Type

• Full Stripe Connect API Integration (Custom or Standard):
  Implementing this payment flow generally requires a full Connect integration because you’ll be using the Transfers API for on-demand fund movement. With a full integration, you get the control needed to trigger transfers when merchants request withdrawals.

• Stripe Express:
  Express accounts are designed to simplify the onboarding and payout experience but offer less control over payout timing. They come with their own payout schedules and managed dashboards. If your goal is to have full control over when funds are transferred to a merchant, a full integration (Custom or Standard Connect) is more suitable.

Documentation Links

• Separate Charges and Transfers:
  https://stripe.com/docs/connect/separate-charges-and-transfers

• Transfers API:
  https://stripe.com/docs/api/transfers/create

These resources will help you understand how to handle both the initial charge and the delayed transfer mechanism.

Summary

Yes, it is possible to collect all funds into your platform account and then move funds to a merchant only when they request a payout. Achieving this requires you to use the separate charges and transfers approach via the full Stripe Connect API. While Stripe Express simplifies much of the onboarding and payout process, it may not provide the level of control you need for on-demand transfers.