Implementing Stripe Connect for Multi-Vendor Marketplaces

Connect Account Types

Stripe Connect offers two account types: Express (simpler, Stripe handles compliance) and Custom (more control, you handle compliance). For most marketplaces, Express accounts are the right choice.

Onboarding Flow

Create Connect accounts for vendors, then use Account Links to guide them through Stripe's onboarding. This collects tax information, bank details, and identity verification.

// Create Connect account
const account = await stripe.accounts.create({
  type: 'express',
  country: 'US',
  email: vendor.email,
});

// Generate onboarding link
const accountLink = await stripe.accountLinks.create({
  account: account.id,
  refresh_url: 'https://yourapp.com/reauth',
  return_url: 'https://yourapp.com/success',
  type: 'account_onboarding',
});

Payment Flows

Use destination charges for direct payments to vendors, or separate charges and transfers for escrow. Destination charges are simpler but less flexible. Escrow gives you more control over when vendors get paid.

Payouts and Fees

Stripe handles payouts automatically, but you can trigger manual payouts. Application fees are collected separately and transferred to your platform account. This keeps marketplace revenue separate from vendor payments.

Compliance and Tax

Stripe Connect handles most compliance requirements, but you're responsible for 1099-K reporting in the US. Track vendor earnings and issue tax forms when thresholds are met. Our Marketplace template includes this tracking.