api - Does Stripe allow to give money to customers? -


i'm using stripe api on couple of projects.

for first time i've think special case customer registers card (or whatever else if it's possible) , money stripe ; refund there's no payment before ...

i'm conscious risk of such functionality system, has overprotected everywhere.

i'm searching internet , don't find answer it. possible ? if yes how do api ?

it possible issue refunds via stripe api outlined here:

https://stripe.com/docs/api#refunds

... business practice describing disallowed in credit card processing contexts.

when using service stripe or square accept payments, payments flow through merchant account, , within context of credit card processing, merchant account cannot used intent transfer money random cardholders business practice, except refund money paid cardholder part of prior sale.

a merchant account not bank account, instead more line of credit. conceivably attempt send money via refunds in spite of rules, nothing barring trying; transfers flagged, negative merchant account balance business accrues trip sorts of warning flags throughout payment processing chain. eventually, should expect kicked off of stripe if didn't stop. if enroll in own through merchant service provider (braintree, auth.net, etc.), having own merchant account not help. rules not documented why disallowed, short reason there fraud schemes exist possible can cost upstream parties lot of money in short period of time. not in interest allow sort of refund practice. if tried setup own merchant account, knowledgeable merchant service provider reject application if became clear intent issue refunds credit cards.

instead of giving money straight-out customers, if trying offer sort of enrollment or purchase bonus, better offer credit or coupon or other discount doesn't change semantics of accepting payments stripe / merchant account.

if trying create sort of money transfer service on stripe, discourage using credit cards receiving parties , recommend performing ach/wire transfers instead. there no corresponding restriction money transfer in ach system there in credit card processing.


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