When using platform-first flows, where are the fees deducted from?

When using platform-first flows, where are the fees deducted from?

• A. The connected account
• B. The merchant
• C. The customer
• D. The platform balance

Answer: (D)

In platform-first flows, the platform is the entity that monetizes the transaction by taking an application fee. The customer is charged the full amount, and the connected account receives the remainder after that fee is taken. That application fee is collected into the platform’s own balance. So the fees are effectively deducted from the platform balance, not from the connected account or the customer. For example, if a customer pays $100 and the platform fee is $10, the connected account receives $90 and the platform balance is credited with $10. This setup distinguishes platform-first flows from other patterns where fees might come from the connected account’s payout or are handled differently.

In platform-first flows, the platform is the entity that monetizes the transaction by taking an application fee. The customer is charged the full amount, and the connected account receives the remainder after that fee is taken. That application fee is collected into the platform’s own balance. So the fees are effectively deducted from the platform balance, not from the connected account or the customer. For example, if a customer pays $100 and the platform fee is $10, the connected account receives $90 and the platform balance is credited with $10. This setup distinguishes platform-first flows from other patterns where fees might come from the connected account’s payout or are handled differently.