Refunds with Split Pay Accounts

Overview

In a situation where you have a split account, your partner takes a certain percentage of the sales or a certain percentage of the revenue that is left after the FastSpring fee. We often get asked what happens when a refund happens in this circumstance. To answer this question, we will use two examples, based on the way you have asked us to set up your split accounts.

Option 1: Fixed Percent of Sale Price

Let us say that the customer paid $100 for your product and that your partner gets a 70% split.  $100 will go into your account, and then part of it (8.9% or 5.9% + $.95) comes out for the FastSpring fee. If the former, $8.90 comes out of your account, leaving your account with $91.10. Then $70.00 (70% of $100) goes into the partner's account, leaving your account with $21.10. If there is a full refund, the $70.00 is removed from the partner's account and put back into your account. The FastSpring fee of $8.90 is put back into your account. The $100 is returned to the customer, and there is a $3.50 fee assessed to your company as a return fee.

Option 2: Fixed Percent of the Revenue

Let us say that the customer paid $100 for your product and that your partner gets a 70% split.  $100 will go into your account, and then part of it (8.9% or 5.9% + $.95) comes out for the FastSpring fee. If the former, $8.90 comes out of your account, leaving your account with $91.10. Then $63.77 (70% of $100 - $8.90) goes into the partner's account, leaving your account with $27.33. If there is a full refund, the $63.77 is removed from the partner's account and put back into your account. The FastSpring fee of $8.90 is put back into your account. The $100 is returned to the customer, and there is a $3.50 fee assessed to your company as a return fee.

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