In which instances should direct charges be utilized?

Direct charges are particularly appropriate for Express and Custom accounts, as these account types provide platforms with more flexibility and control over how they handle payments. In the context of platforms using Stripe, direct charges allow the platform to charge directly on behalf of the connected accounts, which can be advantageous for making transactions seamless for users.

Using direct charges with Express accounts enables platforms to leverage Stripe's simplified onboarding processes while retaining control over certain payment aspects, thereby ensuring a user-oriented experience. This facilitates easier reconciliation and management of funds coming in and out of the connected accounts.

Moreover, for Custom accounts, direct charges offer even more flexibility as developers can build highly tailored experiences that meet the specific needs of their marketplace or application. Custom accounts allow for full control over the payment flows and user interactions, which aligns well with the capabilities of direct charges.

In instances with Standard accounts, direct charges are not applicable because Standard accounts typically do not integrate as deeply with Stripe's API, limiting the platform’s ability to manage payments directly on behalf of users. This is why the use of direct charges is specifically recommended for Express or Custom accounts when the specific requirements of the platform and its business model align appropriately.