diff --git a/app/Filament/Resources/UserResource.php b/app/Filament/Resources/UserResource.php
index 71eead622..f451fdc99 100644
--- a/app/Filament/Resources/UserResource.php
+++ b/app/Filament/Resources/UserResource.php
@@ -104,7 +104,8 @@ public static function form(Schema $schema): Schema
                             ->content(fn (User $record) => $record->developerAccount->payouts_enabled ? 'Yes' : 'No'),
                         Forms\Components\Placeholder::make('developerAccount.charges_enabled')
                             ->label('Charges Enabled')
-                            ->content(fn (User $record) => $record->developerAccount->charges_enabled ? 'Yes' : 'No'),
+                            ->content(fn (User $record) => $record->developerAccount->charges_enabled ? 'Yes' : 'No')
+                            ->helperText('Not needed for payouts. Accounts on the recipient service agreement never have charges enabled.'),
                         Forms\Components\Placeholder::make('developerAccount.onboarding_completed_at')
                             ->label('Onboarding Completed')
                             ->content(fn (User $record) => $record->developerAccount->onboarding_completed_at?->format('M j, Y g:i A') ?? '—'),
diff --git a/app/Services/StripeConnectService.php b/app/Services/StripeConnectService.php
index fbe82bdb2..cd23b9554 100644
--- a/app/Services/StripeConnectService.php
+++ b/app/Services/StripeConnectService.php
@@ -252,16 +252,27 @@ protected function createStripeAccount(User $user, string $country): Account
         return Cashier::stripe()->accounts->create($params);
     }
 
+    /**
+     * Buyers pay the platform and we send the developer's share with a transfer, so a
+     * developer's account never takes a charge itself. All we need is for it to receive
+     * transfers and pay them out to the bank. Recipient accounts can't take charges at all,
+     * so charges_enabled is always false for them and mustn't hold them back.
+     *
+     * Capabilities are read as an array because Stripe hands back an account with none as an
+     * empty array rather than an object.
+     */
     protected function determineStatus(Account $account): StripeConnectStatus
     {
-        if ($account->payouts_enabled && $account->charges_enabled) {
-            return StripeConnectStatus::Active;
-        }
-
         if ($account->requirements?->disabled_reason) {
             return StripeConnectStatus::Disabled;
         }
 
+        $transfersCapability = $account->capabilities['transfers'] ?? null;
+
+        if ($transfersCapability === 'active' && $account->payouts_enabled) {
+            return StripeConnectStatus::Active;
+        }
+
         return StripeConnectStatus::Pending;
     }
 
diff --git a/tests/Feature/Commands/ProcessEligiblePayoutsTest.php b/tests/Feature/Commands/ProcessEligiblePayoutsTest.php
index cbeb80f70..b88a6d932 100644
--- a/tests/Feature/Commands/ProcessEligiblePayoutsTest.php
+++ b/tests/Feature/Commands/ProcessEligiblePayoutsTest.php
@@ -3,6 +3,7 @@
 namespace Tests\Feature\Commands;
 
 use App\Enums\PayoutStatus;
+use App\Enums\StripeConnectStatus;
 use App\Jobs\ProcessPayoutTransfer;
 use App\Models\DeveloperAccount;
 use App\Models\Plugin;
@@ -237,6 +238,44 @@ public function test_checks_stripe_and_releases_held_payouts_once_the_developer_
         });
     }
 
+    public function test_releases_held_payouts_for_a_recipient_account_stuck_at_pending(): void
+    {
+        Queue::fake();
+
+        // How a developer on the recipient service agreement was left before charges_enabled
+        // stopped counting: onboarded and able to be paid out, but never marked active.
+        $developerAccount = DeveloperAccount::factory()->pending()->create([
+            'country' => 'MX',
+            'payout_currency' => 'MXN',
+            'payouts_enabled' => true,
+            'onboarding_completed_at' => now()->subMonth(),
+        ]);
+        $payout = PluginPayout::factory()->create([
+            'developer_account_id' => $developerAccount->id,
+            'status' => PayoutStatus::Held,
+            'eligible_for_payout_at' => now()->subDay(),
+        ]);
+
+        $accounts = $this->fakeStripeAccounts(canBePaid: true, serviceAgreement: 'recipient');
+
+        $this->artisan('payouts:process-eligible')
+            ->expectsOutputToContain('Healed 1 held payout(s)')
+            ->expectsOutputToContain('Dispatched 1 payout transfer job(s)')
+            ->assertExitCode(0);
+
+        $developerAccount->refresh();
+
+        $this->assertSame([$developerAccount->stripe_connect_account_id], $accounts->retrieved);
+        $this->assertSame(StripeConnectStatus::Active, $developerAccount->stripe_connect_status);
+        $this->assertFalse($developerAccount->charges_enabled);
+        $this->assertTrue($developerAccount->canReceivePayouts());
+        $this->assertEquals(PayoutStatus::Pending, $payout->fresh()->status);
+
+        Queue::assertPushed(ProcessPayoutTransfer::class, function ($job) use ($payout) {
+            return $job->payout->id === $payout->id;
+        });
+    }
+
     public function test_checks_stripe_for_developers_with_pending_payouts_that_are_due(): void
     {
         Queue::fake();
@@ -340,14 +379,14 @@ public function test_healed_payout_within_holding_period_is_not_dispatched(): vo
         Queue::assertNothingPushed();
     }
 
-    private function fakeStripeAccounts(bool $canBePaid = false, bool $reachable = true): object
+    private function fakeStripeAccounts(bool $canBePaid = false, bool $reachable = true, string $serviceAgreement = 'full'): object
     {
-        $accounts = new class($canBePaid, $reachable)
+        $accounts = new class($canBePaid, $reachable, $serviceAgreement)
         {
             /** @var list<string> */
             public array $retrieved = [];
 
-            public function __construct(private bool $canBePaid, private bool $reachable) {}
+            public function __construct(private bool $canBePaid, private bool $reachable, private string $serviceAgreement) {}
 
             public function retrieve(string $id): Account
             {
@@ -357,12 +396,20 @@ public function retrieve(string $id): Account
                     throw new ApiConnectionException('Could not connect to Stripe');
                 }
 
+                $capability = $this->canBePaid ? 'active' : 'inactive';
+                $isRecipient = $this->serviceAgreement === 'recipient';
+
                 return Account::constructFrom([
                     'id' => $id,
                     'payouts_enabled' => $this->canBePaid,
-                    'charges_enabled' => $this->canBePaid,
+                    // Recipient accounts can't take payments, so Stripe never enables charges on them.
+                    'charges_enabled' => $this->canBePaid && ! $isRecipient,
                     'details_submitted' => $this->canBePaid,
+                    'capabilities' => $isRecipient
+                        ? ['transfers' => $capability]
+                        : ['card_payments' => $capability, 'transfers' => $capability],
                     'requirements' => ['disabled_reason' => null],
+                    'tos_acceptance' => ['service_agreement' => $this->serviceAgreement],
                 ]);
             }
         };
diff --git a/tests/Feature/Filament/UserResourceDeveloperTest.php b/tests/Feature/Filament/UserResourceDeveloperTest.php
index e4982aaee..b4477ae82 100644
--- a/tests/Feature/Filament/UserResourceDeveloperTest.php
+++ b/tests/Feature/Filament/UserResourceDeveloperTest.php
@@ -39,7 +39,8 @@ public function test_developer_account_section_is_visible_when_user_has_develope
         $this->actingAs($this->admin)
             ->get(EditUser::getUrl(['record' => $this->user]))
             ->assertSee('Developer Account')
-            ->assertSee($this->user->developerAccount->stripe_connect_account_id);
+            ->assertSee($this->user->developerAccount->stripe_connect_account_id)
+            ->assertSee('Not needed for payouts.');
     }
 
     public function test_developer_account_section_is_hidden_when_user_has_no_developer_account(): void
diff --git a/tests/Feature/Services/StripeConnectServiceTest.php b/tests/Feature/Services/StripeConnectServiceTest.php
index e5bcda8c0..f69aed4dc 100644
--- a/tests/Feature/Services/StripeConnectServiceTest.php
+++ b/tests/Feature/Services/StripeConnectServiceTest.php
@@ -11,6 +11,7 @@
 use App\Models\User;
 use App\Services\StripeConnectService;
 use Illuminate\Foundation\Testing\RefreshDatabase;
+use PHPUnit\Framework\Attributes\DataProvider;
 use PHPUnit\Framework\Attributes\Test;
 use Stripe\Account;
 use Stripe\PaymentIntent;
@@ -211,22 +212,111 @@ public function refresh_account_status_keeps_the_date_onboarding_was_first_compl
     public function refresh_account_status_marks_a_developer_who_finished_onboarding_as_active(): void
     {
         $developerAccount = DeveloperAccount::factory()->pending()->create();
-        $this->fakeStripeAccounts();
+        $this->fakeStripeAccounts(self::fullAccount());
 
         app(StripeConnectService::class)->refreshAccountStatus($developerAccount);
 
         $developerAccount->refresh();
 
+        $this->assertSame(StripeConnectStatus::Active, $developerAccount->stripe_connect_status);
+        $this->assertTrue($developerAccount->charges_enabled);
         $this->assertTrue($developerAccount->canReceivePayouts());
         $this->assertTrue($developerAccount->hasCompletedOnboarding());
     }
 
-    private function fakeStripeAccounts(): object
+    #[Test]
+    public function refresh_account_status_marks_a_recipient_account_as_active_even_though_it_cannot_take_charges(): void
+    {
+        $developerAccount = DeveloperAccount::factory()->pending()->create([
+            'country' => 'MX',
+            'payout_currency' => 'MXN',
+        ]);
+        $this->fakeStripeAccounts(self::recipientAccount());
+
+        app(StripeConnectService::class)->refreshAccountStatus($developerAccount);
+
+        $developerAccount->refresh();
+
+        $this->assertSame(StripeConnectStatus::Active, $developerAccount->stripe_connect_status);
+        $this->assertFalse($developerAccount->charges_enabled);
+        $this->assertTrue($developerAccount->payouts_enabled);
+        $this->assertTrue($developerAccount->canReceivePayouts());
+    }
+
+    /**
+     * @param  array<string, mixed>  $account
+     */
+    #[Test]
+    #[DataProvider('accountsThatCannotBePaidYet')]
+    public function refresh_account_status_keeps_a_developer_pending_until_stripe_can_pay_them(array $account): void
+    {
+        $developerAccount = DeveloperAccount::factory()->pending()->create();
+        $this->fakeStripeAccounts($account);
+
+        app(StripeConnectService::class)->refreshAccountStatus($developerAccount);
+
+        $developerAccount->refresh();
+
+        $this->assertSame(StripeConnectStatus::Pending, $developerAccount->stripe_connect_status);
+        $this->assertFalse($developerAccount->canReceivePayouts());
+    }
+
+    /**
+     * @return array<string, array{array<string, mixed>}>
+     */
+    public static function accountsThatCannotBePaidYet(): array
     {
-        $accounts = new class
+        return [
+            'recipient account with transfers pending' => [self::recipientAccount(['capabilities' => ['transfers' => 'pending']])],
+            'recipient account with transfers inactive' => [self::recipientAccount(['capabilities' => ['transfers' => 'inactive']])],
+            'recipient account without payouts enabled' => [self::recipientAccount(['payouts_enabled' => false])],
+            'full account with transfers pending' => [self::fullAccount(['capabilities' => ['transfers' => 'pending']])],
+            'full account with transfers inactive' => [self::fullAccount(['capabilities' => ['transfers' => 'inactive']])],
+            'account without the transfers capability' => [array_merge(self::recipientAccount(), ['capabilities' => []])],
+        ];
+    }
+
+    /**
+     * @param  array<string, mixed>  $account
+     */
+    #[Test]
+    #[DataProvider('disabledAccounts')]
+    public function refresh_account_status_marks_a_disabled_account_as_disabled_even_if_it_could_otherwise_be_paid(array $account): void
+    {
+        $developerAccount = DeveloperAccount::factory()->create();
+        $this->fakeStripeAccounts($account);
+
+        app(StripeConnectService::class)->refreshAccountStatus($developerAccount);
+
+        $developerAccount->refresh();
+
+        $this->assertSame(StripeConnectStatus::Disabled, $developerAccount->stripe_connect_status);
+        $this->assertTrue($developerAccount->payouts_enabled);
+        $this->assertFalse($developerAccount->canReceivePayouts());
+    }
+
+    /**
+     * @return array<string, array{array<string, mixed>}>
+     */
+    public static function disabledAccounts(): array
+    {
+        return [
+            'recipient account' => [self::recipientAccount(['requirements' => ['disabled_reason' => 'requirements.past_due']])],
+            'full account' => [self::fullAccount(['requirements' => ['disabled_reason' => 'under_review']])],
+        ];
+    }
+
+    /**
+     * @param  array<string, mixed>|null  $retrieved  What Stripe returns when the account is retrieved.
+     */
+    private function fakeStripeAccounts(?array $retrieved = null): object
+    {
+        $accounts = new class($retrieved ?? self::fullAccount())
         {
             public ?array $createdWith = null;
 
+            public function __construct(private array $retrieved) {}
+
             public function create(array $params): Account
             {
                 $this->createdWith = $params;
@@ -236,13 +326,7 @@ public function create(array $params): Account
 
             public function retrieve(string $id): Account
             {
-                return Account::constructFrom([
-                    'id' => $id,
-                    'payouts_enabled' => true,
-                    'charges_enabled' => true,
-                    'details_submitted' => true,
-                    'requirements' => ['disabled_reason' => null],
-                ]);
+                return Account::constructFrom(['id' => $id] + $this->retrieved);
             }
         };
 
@@ -253,4 +337,60 @@ public function retrieve(string $id): Account
 
         return $accounts;
     }
+
+    /**
+     * An onboarded Express account on the full service agreement, the way Stripe returns it.
+     *
+     * @param  array<string, mixed>  $overrides
+     * @return array<string, mixed>
+     */
+    private static function fullAccount(array $overrides = []): array
+    {
+        return array_replace_recursive([
+            'object' => 'account',
+            'type' => 'express',
+            'country' => 'GB',
+            'charges_enabled' => true,
+            'payouts_enabled' => true,
+            'details_submitted' => true,
+            'capabilities' => [
+                'card_payments' => 'active',
+                'transfers' => 'active',
+            ],
+            'requirements' => [
+                'currently_due' => [],
+                'past_due' => [],
+                'disabled_reason' => null,
+            ],
+            'tos_acceptance' => ['service_agreement' => 'full'],
+        ], $overrides);
+    }
+
+    /**
+     * An onboarded Express account on the recipient service agreement. It only has the
+     * transfers capability, so Stripe never enables charges on it.
+     *
+     * @param  array<string, mixed>  $overrides
+     * @return array<string, mixed>
+     */
+    private static function recipientAccount(array $overrides = []): array
+    {
+        return array_replace_recursive([
+            'object' => 'account',
+            'type' => 'express',
+            'country' => 'MX',
+            'charges_enabled' => false,
+            'payouts_enabled' => true,
+            'details_submitted' => true,
+            'capabilities' => [
+                'transfers' => 'active',
+            ],
+            'requirements' => [
+                'currently_due' => [],
+                'past_due' => [],
+                'disabled_reason' => null,
+            ],
+            'tos_acceptance' => ['service_agreement' => 'recipient'],
+        ], $overrides);
+    }
 }