What is an 'Over Refund' item displayed in our financial reports?

Overview

An 'Over Refund' occurs where a refund has been issued to INCLUDE fees - which is money never received to the account - and needs to be reclaimed on a subsequent transaction.

The 'Why?'

The Stripe payment gateway in Sport:80 is part of a 'Custom Connect' solution which enables, for example:

1. An Organizational Hierarchy on each National Federation site, involving Clubs, Regions and other body types
2. Single payments to be able to be split, such as where a single Individual Membership transaction covers both National Federation and Club Membership portions
3. Accounts to be able to incur negative balances without detrimental impact with Stripe

This last point also covers when refunds are issued to the full amount of the original transaction, as that includes fees that have not flowed through the Stripe Account itself.

The 'How?'

It is important to understand the fundamental behaviour of transactions in the connected environment that is the Sport:80 Platform, namely:

All fees are charged and taken at source (both Stripe & Sport:80), so an Organization only receives the net amount to their bank account.

Example:

• Event Entry = £40
• Net Received = £37.92

If the Event Host Organization then decides to process a refund for the 'Full Amount' that was originally charged to the entrant (£40), Sport:80 provide the difference between the original fee and the net received (£2.08) out of our own funds. Sport:80 then recovers that back from the Organization on the NEXT ELIGIBLE TRANSACTION and this is displayed on their financial reports as 'Over Refunds' (and on their payments page in the Finance Admin > Stripe section of the platform).

Organizations aren't charged any fees twice, rather Sport:80 recovers the money at a later date when the Organization chooses to refund someone in full.

Note: When Organizations process their refunds, they can select to only refund the net amount (it defaults to this amount). So they don't have to 'Over Refund'.