Fee Charging per Configured Subaccount
The Escrow Account allows funds received by a subaccount to be temporarily held until the conditions for their release have been met. To use this feature, it must be enabled individually for each subaccount that will participate in the fund retention flow.
This page explains how the Escrow Account monthly fee is charged after activation, who can be responsible for paying this fee, and how the feature's billing cycle works.
When this fee is charged
The Escrow Account fee is charged only for subaccounts that have the feature enabled.
When configuring a subaccount to use the Escrow Account, you can choose whether the monthly fee will be charged to the subaccount itself or to the main account.
Subaccounts that do not have the Escrow Account enabled are not charged the monthly fee.
To view the current pricing for the feature, access the pricing page using a user with permission to view the account fees.
Billing cycle
After enabling the Escrow Account for a subaccount, the first monthly fee will be charged on the day following activation.
After the first charge, subsequent monthly fees will follow a recurring monthly billing cycle as long as the feature remains enabled.
The party responsible for paying the monthly fee is defined during the Escrow Account configuration through the isFeePayer attribute.
Example
Consider the following scenario:
- 07/10: the Escrow Account is enabled for a subaccount;
- 07/11: the first monthly fee is charged;
- 08/11: the next monthly fee is charged;
- 09/11: the following monthly fee is charged, provided the feature remains enabled.
As long as the feature remains active, this billing cycle will continue to repeat every month.
Attention
If the feature is disabled after the Escrow Account fee has been charged, re-enabling it will cause the next charge to occur in the next billing cycle, one month after the last fee was charged.
If more than one month has already passed since the last charge, the new monthly fee will be charged on the day following reactivation.
Best practices
Before enabling the Escrow Account for a subaccount, it is recommended to:
- define who will be responsible for paying the monthly fee (
isFeePayer); - consider the impact of this fee on the financial reconciliation of both the platform and the subaccounts;
- notify the subaccounts in advance if the cost of the feature will be passed on to them;
- avoid repeatedly enabling and disabling the feature unnecessarily, as this may affect the billing cycle behavior.
To learn how to configure the Escrow Account and define the party responsible for paying the monthly fee, see the Configuring the Escrow Account for Subaccounts page.
Updated 17 days ago