Which capability is required on the Custom connected account for separate charges and transfers?

Which capability is required on the Custom connected account for separate charges and transfers?

• A. Transfers
• B. Payouts
• C. Refunds
• D. Settlements

Answer: (A)

Separating charges and transfers relies on moving funds from the platform to the connected account. That requires enabling the transfers capability on the Custom connected account. With transfers enabled, Stripe can actually move the money to the connected account after you issue a charge on the platform. Without this capability, the transfer step cannot occur, so the flow can’t be completed. Refunds handle returning money to the customer, payouts move funds from a connected account to a bank, and settlements isn’t a separate capability you enable for this flow. The transfers capability is the one that makes the fund movement to the connected account possible.

Separating charges and transfers relies on moving funds from the platform to the connected account. That requires enabling the transfers capability on the Custom connected account. With transfers enabled, Stripe can actually move the money to the connected account after you issue a charge on the platform. Without this capability, the transfer step cannot occur, so the flow can’t be completed.

Refunds handle returning money to the customer, payouts move funds from a connected account to a bank, and settlements isn’t a separate capability you enable for this flow. The transfers capability is the one that makes the fund movement to the connected account possible.