Stripe Connect & Your Revenue

Stripe Connect is a way to get paid faster for your events, but there are some important reporting and financial implications for using your own payment processing account. Continue to learn more about how Stripe Connect impacts your event payouts. 

This article assumes you are familiar with Stripe and have already connected your Stripe account or are interested in doing so. 

Overview 

Stripe Connect allows event organizers to connect their own Stripe account to the platform to receive their event revenue instantly when each order is placed. However, connecting your Stripe account could impact your true net revenue due to credit card processing fee owed to Stripe. 

Here's some general information about how Stripe Connect works: 

  • Your Stripe account collects 100% of the order total
  • Service Fees are automatically deducted in the form of an ‘application fee’ and paid to the ticketing platform
  • Credit card processing fees are automatically deducted and paid directly to Stripe from the order total
  • Stripe will pay your net revenue to your bank at your specified cadence (daily, weekly, etc) 

When using your own Stripe account, you are responsible for paying the Stripe credit card payment processing fee. A credit card processing fee is collected and paid by your customers to offset the anticipated cost of Stripe's credit card processing. Due to the variation in Stripe's fees, this may impact the true net revenue you receive from Stripe. 

Example Transaction

The easiest way to demonstrate how you'll get paid is through an example. Let’s take a look at an example transaction to demonstrate how Stripe processing affects your net payout. 

An order is placed for a total of $58.00. (Note: A&B will carry into the example transaction in Stripe below)

Now let's see what this order looks like in Stripe: 

A. The full $58.00 transaction is processed in your Stripe account
B. The 'Application Fee' is the service fee paid by the customer. This is paid upon transaction back to the ticketing platform at no charge to you. 
C. The 'Stripe Processing' Fee is the credit card processing fee owed to Stripe. The customer paid $1.80 to help cover this cost and Stripe charged you $1.98. This means you owe the $0.18 difference to Stripe. 
D. Your true net for this order is $49.82

Alternatively, if you were not using your own Stripe account and using the standard platform processor, you would be owed the full $50.00 for the ticket revenue. Since you are responsible for paying Stripe's credit card processing rate when you connect your own Stripe account, your true net revenue might be different than the stated amount on your event dashboards. 

The Stripe processing fee rate is determined by your independent relationship with Stripe and could vary based on processing volumes.