Member club credit balance management

Every user linked with the club may maintain their own credit balance with the club. The user does not have to be a member. In most circumstances, the sum of all linked users credit balances represent monies received and held in the club's bank accounts. It represents a liability for the club as this is money not actually spent (yet) on goods or services provided by the club.

ManageMyMatch extends useful capabilities to users; For example they can transfer part or all of their outstanding balance to another user. Or a user can set up their own Stripe account through which funds can be extracted from their club credit balance back into their bank account. When transferring credit from one user to another they do not have to be from the same club.

Inter club transfers are not as simple as intra club transfers. For the latter, it's simply a matter of debiting one club account and crediting the other. The net effect from the club's perspective is zero movement of funds. But transferring an amount from one club to another is another matter. There must be a physical movement of money from one club to another. ManageMyMatch achieves this transparently for a club without having to transact against the club's bank accounts as follows (see the attached schematic).

ManageMyMatch maintains its own account with each club. This account can be either positive (the club owes ManageMyMatch money) or negative (ManageMyMatch owes the club). When an inter-club user transfer takes place the following transactions are made (£X going from club A to club B):

• Club A user account debited by X
• Club A ManageMyMatch account credited by X
• Club B user account credited by X
• Club B ManageMyMatch account debited by X

Another example is where a user takes £X out of their club credit account back to their bank account (via their personal Stripe account):

• Club user account debited by X
• Club A ManageMyMatch account credited by X
• ManageMyMatch pays the user

These scenarios leave us in a position where ManageMyMatch may owe or be owed funds from a club as recorded on ManageMyMatch's club account. This situation is kept under control by diverting subsequent user payments as necessary to settle  monies owed. This is achieved using a "balancing out" procedure as follows:

All payments made by users via ManageMyMatch to their club are controlled by ManageMyMatch. In normal circumstances they are diverted directly to the Club's Stripe account. If, however, ManageMyMatch's club balance is equal to or greater than the incoming payment it is used, instead, to "pay off" this amount owing to ManageMyMatch. In this case the payment is directed into ManageMyMatch's Stripe account and the user's club balance is credited and ManageMyMatch's club account is debited.

At the same time, the amount now directed into ManageMyMatch's account is used to payoff any negative balances ManageMyMatch may have with other clubs. This is done by transferring the necessary funds from ManageMyMatch's Stripe account into the club's Stripe account and simultaneously crediting ManageMyMatch's balance with the club.

When this is done the clubs involved do not pay the Stripe and ManageMyMatch fees in the normal way (from their own Stripe account). Instead, ManageMyMatch will deduct the relevant fee portion from the amount transferred to the club's Stripe account.

Refer to the attachment for a diagram showing the main flows as described above.