How Stripe Transfers Work

Platform vs Connected accounts#

Stripe Connect uses a two-tier account model. Understanding this model is key to understanding how Split Pay works.

• Platform account — This is your Stripe account. It's the account connected to your Stripe gateway adapter (the official WooCommerce Stripe Payment Gateway, Payment Plugins for Stripe, or FluentCart's built-in Stripe module) that processes customer payments. When a customer checks out, the charge is created on your platform account, and Stripe deducts its processing fees from this account.
• Connected accounts — These are Stripe accounts belonging to your vendors, suppliers, partners, or anyone else you need to send money to. They are linked to your platform through Stripe Connect. Each connected account has its own Stripe Dashboard, balance, and payout schedule.

Think of it this way: your platform is the hub, and connected accounts are the spokes. Money flows from customers into the hub, and your transfer rules determine how much flows out to each spoke.

Payment flow#

Here's what happens when a customer completes a purchase on your storefront (WooCommerce or FluentCart) with Split Pay configured:

Let's walk through a concrete example. Suppose a customer buys a $100 product, and you've configured Split Pay to transfer 70% to a vendor:

1. Customer pays $100 at checkout via Stripe.
2. Stripe charges $100 to the customer and places it in your platform's pending balance.
3. Stripe deducts its processing fee (e.g., $3.20 for a 2.9% + $0.30 standard US fee) from your platform account.
4. Split Pay creates a transfer of $70 (70% of the $100 product total) from your platform's pending balance to the vendor's connected account.
5. Your platform keeps $26.80 ($100 − $3.20 fee − $70 transfer).

The transfers API vs direct & destination charges#

Stripe Connect offers three ways to move money between accounts. Split Pay uses the Transfers API (also called "separate charges and transfers"). Here's how it compares to the other two approaches:

Why the transfers API?

The Transfers API is the most flexible approach for WooCommerce and FluentCart stores because:

• Decoupled from the charge. Transfers happen after the payment succeeds, which means your e-commerce platform handles checkout normally. There are no changes to the customer-facing payment flow on either WooCommerce or FluentCart.
• Multiple recipients. A single charge can fund transfers to multiple connected accounts — ideal for orders with products from different vendors.
• Platform controls fees. Your platform absorbs Stripe's processing fees, so you have full control over your pricing and margin calculations.
• Flexibility. Transfer amounts can be calculated dynamically based on product rules, percentages, fixed amounts, or custom logic via developer filters.

Use cases#

The Transfers API is well suited for a variety of business models. Here are the most common scenarios:

Marketplace commission

You sell products on behalf of vendors and keep a commission on each sale. The vendor receives their share automatically after the payment is processed.

Example: You sell a concert ticket for $50. You want to keep a 15% commission and send the rest to the event organizer.

• Customer pays: $50.00
• Stripe processing fee (2.9% + $0.30): −$1.75
• Transfer to organizer (85% of $50): −$42.50
• Your platform keeps: $5.75 ($7.50 commission minus $1.75 in Stripe fees)

Vendor & supplier payouts

You sell your own products but need to pay a vendor or supplier a fixed amount per sale — for manufacturing, fulfillment, drop-shipping, or licensing.

Example: You sell a custom phone case for $35. The manufacturer costs $12 per unit, so you configure a fixed $12 transfer.

• Customer pays: $35.00
• Stripe processing fee: −$1.32
• Transfer to manufacturer (fixed): −$12.00
• Your platform keeps: $21.68

Partnerships & revenue sharing

You and a business partner co-run a store and split revenue. You can configure percentage-based transfers to divide the proceeds.

Example: You co-sell an online course for $200. Your partner created the content and receives 60%.

• Customer pays: $200.00
• Stripe processing fee: −$6.10
• Transfer to partner (60% of $200): −$120.00
• Your platform keeps: $73.90

Fundraising & donations

You accept donations or fundraising payments through WooCommerce and forward the funds to the receiving organization.

Example: A supporter donates $25. You transfer 100% to the nonprofit's connected account (absorbing the Stripe fee yourself as the platform operator).

• Donor pays: $25.00
• Stripe processing fee: −$1.03
• Transfer to nonprofit (100% of $25): −$25.00
• Your platform covers: −$1.03 (the Stripe fee)

Region restrictions#

Stripe Connect transfers require your platform and connected accounts to be in the same country or region. However, Stripe supports cross-border transfers between the US, Canada, UK, EEA, and Switzerland. Transfers outside this corridor (e.g., US to Australia) will fail.

Best fit for the transfers API#

The Stripe Transfers API — and by extension, Split Pay — works best in scenarios where:

• Your platform processes the payment and then distributes funds to other parties.
• You need to split a single payment across multiple recipients.
• You want full control over how much each party receives, independent of Stripe fees.
• You're paying vendors, suppliers, or partners rather than having customers pay them directly.

Now that you understand how transfers work, you're ready to configure your first transfer rule.

How to Transfer Payments ›