What best describes a direct merchant?

What best describes a direct merchant?

• A. A merchant whose payments are processed directly by Stripe
• B. A merchant who uses cash only
• C. A merchant who issues refunds via bank transfer
• D. A merchant who sources goods

Answer: (A)

Direct merchant refers to a merchant whose card payments are processed directly by Stripe for that merchant’s account. In Stripe Connect terms, this means the merchant (often a connected account) handles the charge itself with Stripe handling the authorization, capture, and settlement, while the platform can still take a separate fee if using direct charges. This setup is what makes the description match “a merchant whose payments are processed directly by Stripe.” The other options describe unrelated things—using cash, issuing refunds through bank transfers, or merely sourcing goods—which don’t define how Stripe processes payments for the merchant.

Direct merchant refers to a merchant whose card payments are processed directly by Stripe for that merchant’s account. In Stripe Connect terms, this means the merchant (often a connected account) handles the charge itself with Stripe handling the authorization, capture, and settlement, while the platform can still take a separate fee if using direct charges. This setup is what makes the description match “a merchant whose payments are processed directly by Stripe.” The other options describe unrelated things—using cash, issuing refunds through bank transfers, or merely sourcing goods—which don’t define how Stripe processes payments for the merchant.