Im hoping someone knows how the Patreon payment processing system works, as Im creating a similar type of site but am not clear on how it works.
I can see there are 2 types of users:
There is Patreon the site (outlet provider) who charges its Users a percentage fee (5%, 8%, etc…)
Then there are the Patrons who donate a monthly fee to the Patreon Users
Who takes care of the payment processing of the donations?
Does Patreon (the outlet provider) take care of this for the Patreon Users or does Patreon only collect fees from the User and the User is responsible for handling processing payments for the Patrons who donate?
To me it almost makes the most sense to handle payments on behalf of the users from their donators but Im struggling to figure out how its done… and if I went that route I would also need to provide users the ability receive itemized reports of payments made unless stripe does this?
My Stripe Integration course covers all aspects to a setup that would work for this use case.
Essentially the course goes into details the two ways in which payments could be processed. Either as a one time fee or a recurring fee (subscription).
In your use case the Pateons would be able to either provide a one-off donation or subscribe for a monthly donation. The course goes into details for how you can allow your application sellers (the Patreon User) to create subscriptions to sell directly to their ‘subscribers’.
The way it is setup in the course is that the application (Patroen) takes a percentage fee of the subscription charge, which is automatically processed and handle by Stripe every month, so the percentage fee is applied to each monthly payment on the subscription.
If you were to give a one-time donation options the application fee would be applied to that one time charge.
The Patreon User Stripe Account gets the money from the payments, however, automatically the percentage fee applied is transferred to your application’s Stripe Account, and all Stripe processing fees are paid for by the Patreon User Stripe Account.
You can do that if you’d like. Just be aware of the implications
Your app pays Stripe processing fees
Your app is liable for any chargebacks and refunds and associated fees/penalties
You can do this no matter which method you’d take. This can be done from within your application, however, Stripe does do this already and ‘why recreate the wheel’ when you can spend more time developing other features for your application.