How to handle Stripe application fees from US platforms to connected accounts in India and other unsupported countries? Answered

Post author
Govind Madan

The problem is that Stripe currently doesn't support taking application fees by a US platform from a connected account in India. I have talked to both Stripe and Memberstack support, stripe says they cannot do anything in this matter whereas Memberstack support says there was a similar ticket raised 3 months ago and there may be a workaround, but they don't know about it. If anyone is aware of that workaround, please let me know.

Comments

14 comments

  • Comment author
    Duncan from Memberstack

    Hi Govind Madan đź‘‹

    The workaround is to remove the application fee from the account. This means Memberstack would not charge a 4% or 2% fee.

    I'm happy to apply this workaround to your account, but we'd need to negotiate a new fixed subscription fee. If that sounds good to you, please send an email to duncan@memberstack.com. Please share your current revenue, member count, and your expected growth for the next year or so. 

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  • Comment author
    Vinicius null

    I'm having a similar problem but for Brazil. Dont know exactly what to do next:

    2
  • Comment author
    Duncan from Memberstack

    I'll follow up with by email 👍 I will remove the % fee and then we can negotiate pricing from there. 

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  • Comment author
    Cristian

    Hi Duncan Hamra đź‘‹

    I am having the same problem. Recently, I have been having difficulties completing payments on my website due to the fees applied. Curiously, this situation did not occur last month.

    I would like to know if there is any solution to resolve this impasse. The fees have been an unexpected obstacle and I would like to find a way to finalize the payment without these inconveniences.

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  • Comment author
    Vinicius null

    the fastest way you can resolve this is to email him directly. In my case, I had to upgrade from the $29 plan to the $49 because he had to remove the percentages.

    2
  • Comment author
    Enzo Farias

    Duncan from Memberstack Hey Duncan I'm having the same problem. 

    My client and I are going to launch a course platform in a few days and when updating our plan on memberstack I was no longer able to make payments due to fees, can we negotiate like you did with the others? I sent you an e-mail
     
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  • Comment author
    Memberstack Team
    • Edited

    Hi Enzo 👋 For sure! Just send an email over to duncan@memberstack.com with your App ID and we'll get you taken care of. 

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  • Comment author
    Rahul Tyagi

    Does memberstack provide their own payment gateway? (Stripe doesn’t support new accounts onboarding in India)

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  • Comment author
    Raquel Lopez

    Memberstack is natively integrated with Stripe to handle payments.

    But still, there are other workarounds in case you want to use a different payment processor like Paypal for example. The only limitation is that you won't be able to use "Premium Plans" in Memberstack. But you can create an integration in Make/Zapier, for example, to assign your user a "Free plan" after a successful payment in the platform of your choice. You can make free plans to act as your premium plans in terms of gating content. The downsize is that you would have to take the long way 🙂

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  • Comment author
    Rahul Tyagi

    But we cant automatize the process.

    I mean that with Stripe it is automated that when the user pays the subscription he/she logs in directly to the subscription that belongs to him/her instantly.

    if we integrate another payment method, we lose that attribute or not? because I thought about that alternative (I am argentinian) and the only thing I deduce is that once they pay manually I put them in the plan they should, but it is not scalable.

    Stripe doesnt work here :/

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  • Comment author
    Raquel Lopez

    I see. I'll try to respond to your concerns one by one.

    Firstly, in order for a user to pay in Memberstack (using Stripe checkout) he/she must be already be logged in so they can access checkout and pay.

    The steps would be as follows for a user without an account

    1. User clicks sign up
    2. User fills sign up fields
    3. User gets redirected to checkout (applying some logic in the page)

    So, to the second question, if the user is already logged in you would be automating the process to assign the plan without the user having to wait for you to assign it manually. You technically are able to process the payment first and later create the user (signup scenario) if you use the automated (custom) route, since your are responsible of creating the logic, not Memberstack.

    And for last, I know Stripe doesn't work in some countries, but if the merchant is "based" in one of the unsupported countries. You can create a LLC in USA and start accepting payments in Stripe while still being in Argentina. https://ezfrontiers.com/como-usar-stripe-en-latinoamerica/

    The difference between Premium Plans and Free plans in Memberstack is basically the name. Their main functionality is the same. To segment users and gate content. Premium plans would handle the hassle of having to deal with the payment and collecting money yourself.

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  • Comment author
    Rahul Tyagi

    Thanks raquel!!

    We have Any documentation for how i can build the process of payment with paypal or other payment process. Cheers!

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  • Comment author
    Raquel Lopez

    Uhm, not really, nothing official. Since using non-native payment providers is outside of the scope of Memberstack documentation, you might have to rely on community posts, blogs or forums. Using a different provider is really an edge case. It is not the easiest solution, and also not the cheapest.

    There exists a lot of different ways to tackle the same problem. The most popular solution, or the one that I would recommend you to try first would be to use Make (or Zapier) to connect each services. You'll have to create a few scenarios:

    • Scenario when user signs up and assign a plan
    • Scenario when user is logged in and assign a plan
    • Scenario to cancel plan when user cancels
    • Scenario to cancel plan when plan expires
    • Scenario to upgrade/downgrade plan

    And maybe a couple more scenarios that would depend on the specific business logic.

    Btw @Boggan here's the official article from Memberstack team that talks about the subject. https://docs.memberstack.com/hc/en-us/articles/7406268771611-Is-It-Possible-to-Integrate-With-Another-Type-of-Processor-Not-Stripe
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  • Comment author
    Rahul Tyagi

    awesome, thanks!

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