- Identity is verified
- Bank account is checked
- Platform manager approves the crowdfunding campaign
- Platform manager approves the payout after the deadline
- A possible service fee will be deducted
- Check if payout succeeded
1. Identity is verified
When creating a crowdfunding campaign, members are required to follow the “Know Your Customer” (KYC) process. Our payment service provider (Stripe) includes a number of steps to obtain and check the identity of an individual or an organisation and to establish whether they are potential risks for fraud or illegal intentions. Uploading identity documents is part of this process. If the identity is (not) verified, the initiator will receive an email to inform him or her of this.
2. Bank account is checked
Based on the bank account that an initiator fills out, the form will automatically know what country that bank account belongs to and will ask a number of verification questions accordingly.
Thus, for example in the Netherlands, the form will require a Chamber of Commerce number but for Canada, it will also require a BIC/SWIFT account.
Upon creating an initiative, the bank details submitted at that time will be used by Stripe for verification.
3. Platform manager approves the crowdfunding campaign
The platform manager separately approves the crowdfunding campaign in the backoffice. If the identity of the initiator is already verified the campaign can be approved. If the identity isn't verified yet, the platform manager can't approve the campaign yet. Read here how it can be that the payout account is not verified.
4. Platform manager approves the payout after the deadline
As soon as a campaign reaches the deadline the platform will automatically create a payout.
In the backoffice they see these in the widget "Payouts ready for approval":
The Platform manager clicks on 'Approve' and the status will change to 'Started'
As soon as the payout is approved, it is no longer possible to change the status of the campaign.
If there is a legitimate reason why the funding shouldn't be paid out, GoodUp Support can be contacted for assistance. Then the complete crowdfunding campaign can be refunded.
5. Service fee
A service fee is charged directly or indirectly to the initiator. This is based on the agreements that the platform has with GoodUp.
Thus, if the platform has opted to charge the service fee directly to the initiator, this will automatically deduct the fee of the amount raised prior to transferring the funds.
If the platform opted to receive an invoice for the total service fee of all funding activities of a set period, Stripe will pay out the full amount to the individual/organisation and GoodUp will send an invoice.
Every transaction is charged by Stripe with variable costs depending on the payment method.
For European cards, this is 1.4% + €0.25 per transaction. For non-European cards 2.9% + €0.25
and for IDEAL payments this is €0.29.
For example, a $500 donation made with a non-European card is charged with a $14,75 service fee.
To prevent charging the supporter and initiator with these transaction costs, these are paid from a general GoodUp wallet. This wallet is paid with the service fee.
6. GoodUp will take care of the rest!
Once the payout is approved we’ll take care of the rest! We strive to transfer payouts every week but at least once a month.
7. Check if payout succeeded
In the backoffice, click in the side menu on 'Funding' and click 'Payouts' to see the status of all payouts.