[caseyf]

This looked exciting at first, but I hadn't heard about "managed accounts" and they (understandably) shift the work to the platform/API user:

  Handling information requests: instead of requesting 
  it directly from the account holder, Stripe will request
  information, such as a social security number or passport
  scan, from you. You must collect this information from
  the user and provide it to Stripe, otherwise Stripe may
  disable transfers to the account.

https://stripe.com/docs/connect/managed-accounts

[bkrausz]

Yup, we saw a lot of platforms looking for a completely customized experience, so we built managed accounts as a way for them to have complete control over the UX. We're currently working on possible middlegrounds, where we can give platforms plenty of control over the experience, while Stripe can help with the burden of onboarding, KYC, and information collection. Stay tuned for more in that area in the coming months!

[gopanache]

@caseyf This is Neal from goPanache. Couple of points about Stripe and Managed Accounts.

1) it didn’t take all that much work to integrate/support instant payouts

2) of course we at goPanache would rather work directly with our clients to collect barber and stylists info, since the whole point is that Stripe is behind the scenes/invisible to our Barbers and Beauty Professionals.

3. Our Clients- The Barbers and Hairstylist love getting paid same day and even on the weekends.

[matthewarkin]

Financial liability is also shifted to the platform / api user.

[swalsh]

If you're a market place, why shouldn't you be responsible for that stuff? Isn't that part of the value you're providing as middle man?

[matthewarkin]

If you use standalone accounts, then the liability is with Stripe. With managed accounts you're collecting all this information, Stripe charges an additional .5% and financial liability switches to you if Stripe cannot debit the merchant. I'm not saying one shouldn't be responsible for it, but it is a difference.

I would argue that the .5% you are paying to use managed accounts would include some sort of "insurance" against fraudulent merchants especially since one would hope Stripe is providing platforms with a similar level of verification compared to standalone accounts.

Ideally platforms would be aware of the differences and make the best decision based on their risk tolerance and UX goals, but after spending a fair amount of time in Stripe's IRC room in the past, people just want to build something and don't always go into the deep documentation listing some of these gotchas.