New AutoPay / PartnerPaySystem Overview

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1. Payment Transfers

Old System:

• Payments moved from "pending balance" to "available" the next day, with deposits occurring on the following banking day.

New System:

• Batching: Funds are stored in the DeliverLogic Stripe escrow account.

• Day 1 (Banking Day): Funds are held for processing.

• Day 2 (Banking Day): Funds are distributed to appropriate Stripe accounts:

  • Restaurant Partners

  • Drivers

  • Merchant of Record / Client

• Day 3 (or as scheduled): Funds are deposited to bank accounts, minus escrow-held amounts for issuing cards (Pay on Pickup or Pay Online).

• No more "pending balance."

2. Simplified Payment and Refund Processing

• Eliminates: Partial deposits and cross-pay issues.

• Refunds: Processed directly from the escrow account, avoiding pullbacks from partners (Drivers, Restaurants, etc.).

3. New Reporting Feature

The Comprehensive Ledger Report Tracks:

• Credit Card Totals

• Gift Card Totals

• Refund Totals

• Dispute Totals

• Pay-on-Pickup Usage

• Platform Fees

• Corporate Payments

• Driver Earnings and Payouts

• Restaurant Earnings and Payouts

• RDS Remaining Funds (after deductions)

• We are also tracking any balance brought forward by an entity associated with your business, including your business (more information about this in the FAQ section at the bottom)

Reconciliation:

• Seamlessly reconcile balances with payouts for accurate bookkeeping.

4. Flexible Payout Options

• Daily Payouts:

  • Reserves funds for operational needs (e.g., Pay-on-Pickup).

  • Configurable to hold specific amounts.

• Weekly Payouts:

  • Funds are distributed every Friday, covering the previous week.

  • Deposited the next banking day if Friday is a holiday.

• Monthly Payouts:

  • Funds delivered before the 10th of each month.

Actionable Steps For Upgrade

Preparation for launch week:

1. If you are using Stripe Issuing Cards for Pay online/pickup.

   1. Set payment schedule to MANUAL on Sunday before your switch on Tuesday night. This will allow funds to be held in your account and eliminate any potential Pay on Pickup and/or Pay Online card issues.

   2. Choose your long-term payout schedule (Manual or Daily only).

      1. Manual - Holds all funds in your available Stripe balance until you choose to deposit at any time.

      2. Daily - Set up your Escrow balances for each day using the data from the past.

         1. Run your Pay on Pickup / Online Usage report for Monday, Tuesday, Wednesday, Thursday, Friday, and Sunday. We suggest doing this for three random weeks in the past three months to get an average usage of Pay on Pickup / Online cards.
            *** MAKE SURE FRIDAY HAS BALANCE TO COVER FRIDAY/SATURDAY/SUNDAY!!!

2. Be prepared for a change in cash flow. See the yellow box below.

Using the Ledger Report

1. Navigate to: Financials > Ledger Report (Beta).

2. Filter by: Specific date ranges or transactions.

3. Review Key Sections:

   • Credit Card Totals

   • Pay-on-Pickup Usage

   • Platform Fees

   • Driver and Restaurant Earnings

   • Remaining Balances

Notes for Pay-on-Pickup Card Users

• Orders for the current day won’t cover immediate purchases.

• Build a reserve balance in the account to ensure uninterrupted operations:

  • Example: Hold $600 on Tuesday, $700 on Wednesday, etc., as per operational needs.

Adoption Timeline

• Testing Phase: August 2024 (tested with multiple clients).

• Global Rollout: February 2025.

FAQ

How will this affect my cash flow?

• Funds will no longer be “pending” in your account

• You will receive deposits 1 day later than your current schedule

Why are you holding funds for an extra banking day?

• We have to hold them because, with this new flow, it takes an extra day for them to clear through the stripe. We went back and forth with them for months to try and expedite, but they did not have a faster option.

• This short delay yields a massive improvement on both partner pay and reporting accuracy.

Why is balance brought forward by an entity associated with my business, including my business?

• This is when you do not have enough in escrow to cover all payments required to your partners (restaurants & drivers).

  • EX. You take a large percentage of non-credit card orders in a day. Some corporate, some cash, and some portal. The amount owed to drivers or restaurants exceeds the credit card balance, so the escrow pot cannot cover all payments.

• This also happens when drivers or restaurants carry negative balances for cash orders.

If we are short on funds how do you decide who gets paid from my ledger?

• We pay Platform fees, Drivers, Restaurants, and you, The merchant of record.

What happens if a holiday delays payouts?

• Funds will be deposited on the next available banking day. For example:

  • If Friday is a holiday, deposits occur on Monday.

  • If both Friday and Monday are holidays, deposits occur on Tuesday.

How does this system handle refunds?

• Refunds are processed directly from the escrow account. This ensures no adjustments or disruptions to distributed funds.

Will this affect my restaurant partner's payouts?

• Yes. Restaurants will be defaulted to weekly payouts. This means they will receive deposits every Friday for the full prior week, Monday through Sunday.

• Restaurants can select monthly payouts and receive all funds on or before the 10th for the entire prior month.

• Restaurants will receive an automatic email with the payouts showing all orders and the total payment amount.