On-Behalf-Of

On-behalf-of is a Stripe Connect setting, on_behalf_of, that names a connected account as the settlement merchant on a charge. Even when the platform account creates and processes the payment, on_behalf_of makes the transaction settle as if the connected account were the merchant.

What it changes

Setting on_behalf_of to a connected account affects how the charge behaves and appears:

• Statement descriptor — the seller's business name, not the platform's, can appear on the customer's card statement.
• Settlement region and currency — the charge settles in the connected account's country, which matters when platform and seller are in different regions.
• Fee structure — Stripe's pricing and available payment methods follow the settlement merchant's account.

In fact, when a platform and a connected account are in different regions, Stripe requires on_behalf_of so the payment settles correctly in the seller's country.

Why it matters

On-behalf-of is about presenting the right merchant to the customer and the card networks. For a marketplace where each seller is the real vendor, having the seller as the settlement merchant reduces confusion on statements — a common source of disputes — and keeps the payment aligned with the seller's legal and regional setup.

It's worth distinguishing from a transfer. On-behalf-of decides whose charge it is at settlement; a transfer moves the money afterward. And it's narrower than being a full merchant of record: on_behalf_of sets the settlement merchant on Stripe, but it does not by itself make that account the legal reseller responsible for tax on the sale.