I am the owner of a platform where users (musicians) can upload and sell their music to other users. All sales proceeds are initially collected in my central Stripe account.
I need to implement a robust withdrawal system that allows musicians to request payouts of their earnings to their own bank accounts. I currently have a ‘bank detail module’ where musicians securely provide their bank account information.
My core challenge is to use the Stripe API to facilitate these payouts.
Specifically, I need guidance on the following:
Which Stripe API features or products are most appropriate for managing individual musician balances and processing payouts from my main Stripe account to their respective bank accounts? I’m looking for the most efficient and scalable solution for a platform business model.
What are the key API endpoints and methods I would use to:Store and manage musician bank account details securely (ideally without directly handling sensitive data on my server).
Initiate a payout to a musician’s linked bank account for a specified amount.
Monitor the status of these payouts (e.g., successful, pending, failed).
Handle any potential fees associated with these payouts.
Are there specific Stripe Connect functionalities (e.g., Standard, Express, Custom accounts) that would be highly recommended for this scenario? If so, how would they integrate with the payout process?
What security considerations and best practices should I keep in mind when implementing this payout system with Stripe?
Could you provide a high-level overview of the typical API workflow for a musician’s withdrawal request, from initiation on my platform to successful deposit in their bank account?
Please provide detailed information, including relevant API documentation links if possible, to help me design and implement this feature effectively.