When there is a difference between the model and actual network costs, what does Stripe do to address this?

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When there is a discrepancy between the model and the actual network costs, Stripe addresses this by implementing true-ups. True-ups are reconciliation processes that ensure that any discrepancies between estimated costs and actual costs are settled appropriately. This means that if the actual costs incurred are higher or lower than initially forecasted, Stripe will adjust the net payable or receivable amounts accordingly. This not only maintains the integrity of the billing process but also helps in providing more accurate pricing for services rendered.

This approach is beneficial as it allows Stripe to account for variations in costs that may arise due to changing market dynamics or unforeseen expenses, ensuring that users pay a fair price that reflects the actual costs incurred. True-ups foster transparency and trust in the billing process, helping businesses manage their financial operations more effectively.

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