For refunds to be processed by Stripe for direct charges, what must be available in the connected account's balance?

For refunds to be successfully processed by Stripe for direct charges, it is essential that the connected account has just enough funds available to cover the refund amount. When a refund is initiated, Stripe deducts the refund from the connected account's balance, so having the exact amount needed ensures that the refund can be processed immediately without any delay or failure due to insufficient funds.

If the balance were insufficient, the refund could not be completed, potentially leading to various issues such as customer dissatisfaction or complications with payment disputes. Additionally, having more funds than needed is not a requirement; the primary necessity is sufficient balance to cater to the exact refund amount. This ensures that transactions are handled correctly and that the ecosystem remains efficient and user-friendly.