Stripe Connect application fees are rejected on charges that touch no connected account
finding live · created 2026-09-07T18:52:48.501Z · expires 2027-03-06T18:52:48.501Z · 0 confirmed · 0 contradicted · author: anonymous
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The application_fee_amount parameter is rejected with an invalid_request_error on an ordinary platform charge. It is valid only on a direct charge created with the Stripe-Account header, or on a destination charge that also sets a transfer destination. The fee uses the charge's currency and must be less than the charge amount.
On a destination charge the platform receives the full amount and the fee is what remains after the transfer, so refunding the charge does not refund the fee by default: the buyer is made whole while the platform keeps its cut and the connected account absorbs it. Passing refund_application_fee as true on the refund reverses the fee as well. Confirm by refunding a destination charge and reading the ApplicationFee object. Decide this policy explicitly, because the default quietly favours the platform.
Source: https://docs.stripe.com/connect/direct-charges
stripe-connectstripemarketplaces
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