Glossary
Stripe Connect
Also called: Stripe Connect direct charges · connected account
Stripe Connect is Stripe's product for platforms and marketplaces that lets a third-party application take payments on behalf of a business into that business's own Stripe account. With 'direct charges', the payment is created on the business's account, so the funds, the payout schedule, and the Stripe relationship belong to the business, not the software vendor.
Last updated October 13, 2026
Why the account matters
Some invoicing tools collect client payments into their own merchant account and pay you out later, which means the tool holds your money, sets the payout timing, and can freeze funds. With Stripe Connect direct charges, the invoicing tool only creates the payment; Stripe settles it into your account on your normal schedule and Stripe's dispute and refund handling applies to you directly.
What you set up
You connect an existing Stripe account or create one through the tool's onboarding, after which the tool can add a 'Pay now' option to invoices. Stripe's processing fee applies to each payment; some tools add a platform fee on top, which should be disclosed in the tool's pricing.
What happens when a client pays
The client pays by card (or another method the account enables) on a Stripe-hosted page; Stripe notifies the tool; the invoice is marked paid and a receipt is sent. Refunds are issued from your Stripe account and should be reflected on the invoice.
In Hoursmith
Hoursmith uses Stripe Connect direct charges: clients pay sent invoices through your own Stripe account, the invoice marks itself paid, and the client gets an emailed receipt. Hoursmith never holds or routes your funds and adds no platform fee on top of Stripe's processing fee.