Platforms using Stripe's Custom or Express Connect product should typically utilize which of the following?

Utilizing destination charges and separate transfers is a best practice for platforms employing Stripe's Custom or Express Connect products. This method allows the platform to charge its customers while simultaneously directing funds to the connected accounts of service providers or vendors.

With destination charges, the platform can create a flexible payment structure. It can charge the customer and then automatically allocate a portion of the funds to the connected accounts, thereby simplifying the payment flow. Additionally, separate transfers enable the platform to manage payouts more effectively by scheduling transfers to the connected accounts based on the platform’s internal logic or business model.

This approach is particularly advantageous for platforms that offer varied pricing strategies or need to accommodate different payout schedules for their users. By using destination charges along with separate transfers, platforms can maintain control over the payment process, ensuring that the correct amounts are charged and disbursed accordingly, while also providing transparency and clarity for both customers and connected accounts.

The other options do not align with the flexibility and control that destination charges and separate transfers offer. Standard charges only focus on straightforward transactions without the intricacies needed for a platform model, while monthly subscriptions and fixed fees limit the financial strategies that can be implemented within a platform’s operations.