The Minimum transaction size helps you avoid losing money on small transactions. You can set the minimum transaction size at Transactions > Minimum transaction size.
In practice, the minimum transaction size is enforced by determining the minimum listing price that sellers can add to their listings.
For example, if you set the minimum transaction size in your marketplace as $10, what you are doing is setting the minimum listing price. Providers won’t be able to list an item below this set price of $10, even if the expected or average transaction size would larger. The validation is done at listing creation, and not at the transaction level.
Why do I need a minimum transaction size?
Stripe does not support transactions below a certain amount. The primary reason is that, like most other payment gateways, Stripe will take a fee from each payment on your marketplace. Since the Stripe fees are charged to the marketplace and not the buyer or seller, it is important to set the minimum payment amount allowed to be paid through your marketplace.
It is also important because transaction sizes below a certain threshold could result in you losing money per transaction when Stripe fees are applied. You may choose to lose money on transactions if you wish, still. Stripe will charge your own account to cover any shortfall between your commission earnings and Stripe fees.
What Minimum listing price in cents should I use?
It depends on the currency and country you are operating in, as Stripe fees are country and currency (because of possible conversions) dependent.
Stripe lists what should be the minimum amount for each currency, and you should refer to that list.
In any case, it has to be higher than 0. If you prefer to not to use payments or prices in your listings, use Free messaging instead.
You can also learn more about Stripe fees for your country on Stripe's website here. With Sharetribe, you are using Stripe Connect with Custom accounts.