Collab Wallet
how transactions between friends are recorded and used
Instead of using traditional payment gateways like PayPal or credit cards, oSplit utilizes Collab Wallet to avoid payment fees.The Collab Wallet tracks owed and credited amounts (as transactions) between two individuals, typically an organizer and a participant, as a consolidated balance.
It also enables one person to extend a credit limit to another person, allowing them to have a negative balance and ensuring the allocation of reservations without having to pay first.
While reservation payments are tracked automatically, actual cash or transfer payments need to be manually recorded and verified by both the organizer and participant.
Credit Card Fees
Imagine having to pay an additional 52 cents for every $5 sale just to use a payment gateway. That's over 10% of the sale, which can be a significant amount, especially for those who sell a lot of cheap or micro products. And it gets worse for smaller transactions - you would pay 39 cents for every $2 sale, which is almost 20% of the transaction value. Now, think about having to pay over $44 just to use a payment gateway for every $1000 sale. And for even larger amounts, the cost would be even higher. For instance, you would have to pay over $390 for every $10,000 sale.
And to make matters worse, some payment gateways may charge less favorable rates when you pay in a different currency, such as Euros instead of US$. All of these fees can make selling online less attractive, especially for those who deal with multiple currencies or have frequent transactions. Using a payment gateway does come with some conveniences, such as instant order processing, seamless refund handling, and the ability to use refunded funds for future purchases.
Imagine having to pay an additional 52 cents for every $5 sale just to use a payment gateway. That's over 10% of the sale, which can be a significant amount, especially for those who sell a lot of cheap or micro products. And it gets worse for smaller transactions - you would pay 39 cents for every $2 sale, which is almost 20% of the transaction value. Now, think about having to pay over $44 just to use a payment gateway for every $1000 sale. And for even larger amounts, the cost would be even higher. For instance, you would have to pay over $390 for every $10,000 sale.
And to make matters worse, some payment gateways may charge less favorable rates when you pay in a different currency, such as Euros instead of US$. All of these fees can make selling online less attractive, especially for those who deal with multiple currencies or have frequent transactions. Using a payment gateway does come with some conveniences, such as instant order processing, seamless refund handling, and the ability to use refunded funds for future purchases.
One way to avoid using payment gateway is to make manual payments through bank transfers or cash.
Manual Payment
Imagine you participate in three group buys (deals) organized by the same person. Each time you make a reservation, you transfer money to the organizer. Once the organizer verifies your payment, your reservation is used to determine if the deal has enough reservations to proceed. If one of the group buys does not reach the required number of reservations by the end of the group buy period, the organizer refunds your reservation money by transferring it back to you. It is then your responsibility to validate that the organizer has indeed transferred the refund money. No money is lost in this process, as you only pay for the item you will receive, and you get a refund if the deal does not reach the minimum requirement. However, it can be time-consuming to transfer and verify each payment, especially for small transactions. This process may be necessary for large transactions, such as buying a car, where the organizer requires you to transfer the money first and you expect to get your money back (not as a balance) if the deal does not meet the minimum requirement. However, for a smaller transaction, it may seem excessive.
Imagine you participate in three group buys (deals) organized by the same person. Each time you make a reservation, you transfer money to the organizer. Once the organizer verifies your payment, your reservation is used to determine if the deal has enough reservations to proceed. If one of the group buys does not reach the required number of reservations by the end of the group buy period, the organizer refunds your reservation money by transferring it back to you. It is then your responsibility to validate that the organizer has indeed transferred the refund money. No money is lost in this process, as you only pay for the item you will receive, and you get a refund if the deal does not reach the minimum requirement. However, it can be time-consuming to transfer and verify each payment, especially for small transactions. This process may be necessary for large transactions, such as buying a car, where the organizer requires you to transfer the money first and you expect to get your money back (not as a balance) if the deal does not meet the minimum requirement. However, for a smaller transaction, it may seem excessive.
Collab Wallet
Collab Wallet operates as if two users issue virtual credit cards to each other, consolidating their balances into one. Just like a credit card, users can extend credit limits to each other, allowing for negative balances, facilitating reservations without upfront payment.
The virtual credit card is valid only for purchases between these two friends and is maintained by oSplit. The balances are consolidated, so if one person reserves a $5 item from a deal organized by another person, the first person owes the second person. If the initial balance is $0, the first person has a balance of -$5, while the second person has a balance of $5. When the second person reserves a $3 item from a deal by the first person, the first person's debt is reduced by the second person's purchase, resulting in a balance of -$2 for the first person and a balance of $2 for the second person. Negative balances are allowed when a person extends a credit limit to another person, enabling purchases without upfront payment.
When purchasing with Collab Wallet, there is no need to wait for the organizer to verify the transfer, so your reservation can be counted towards the group buy immediately. However, just like credit card, if the value of your reservation causes your balance to exceed the credit limit, the system will not allocate your reservation.
In this case, you will need to make a payment first (e.g., transfer money to the organizer), create a transaction record to notify the system of your payment, and have the organizer verify the transaction. The Collab Wallet has three components:
Collab Wallet operates as if two users issue virtual credit cards to each other, consolidating their balances into one. Just like a credit card, users can extend credit limits to each other, allowing for negative balances, facilitating reservations without upfront payment.
The virtual credit card is valid only for purchases between these two friends and is maintained by oSplit. The balances are consolidated, so if one person reserves a $5 item from a deal organized by another person, the first person owes the second person. If the initial balance is $0, the first person has a balance of -$5, while the second person has a balance of $5. When the second person reserves a $3 item from a deal by the first person, the first person's debt is reduced by the second person's purchase, resulting in a balance of -$2 for the first person and a balance of $2 for the second person. Negative balances are allowed when a person extends a credit limit to another person, enabling purchases without upfront payment.
When purchasing with Collab Wallet, there is no need to wait for the organizer to verify the transfer, so your reservation can be counted towards the group buy immediately. However, just like credit card, if the value of your reservation causes your balance to exceed the credit limit, the system will not allocate your reservation.
In this case, you will need to make a payment first (e.g., transfer money to the organizer), create a transaction record to notify the system of your payment, and have the organizer verify the transaction. The Collab Wallet has three components:
- Transactions
- Balance
- Credit Limit
Transaction
Transactions on oSplit are recorded as a record of monetary exchange, such as when a reservation is allocated or an allocated reservation is cancelled. There are two types of transaction that the Platform will create automatically:
Transactions on oSplit are recorded as a record of monetary exchange, such as when a reservation is allocated or an allocated reservation is cancelled. There are two types of transaction that the Platform will create automatically:
oSplit may not automatically create Transaction records for certain types of transactions, such as when you received cash (or money transfer) from your participant. In these cases, you need to manually create a savings Received Payment Transaction or the recipient needs to create a paid Payment Transaction on oSplit. When you create a savings Received Payment Transaction, your Collab Wallet will be reduced, and once created, your Balance with the recipient will also decrease.
There are other Transaction types that function similarly to savings Received Payment but are categorized differently
There are other Transaction types that function similarly to savings Received Payment but are categorized differently
- hail I Owe which declares that you owe money to another person
- redeem Gift which is categorized as a gift
- toll Refund which is categorized as a refund.
Note: These transactions are just for record-keeping purposes and do not automatically trigger payment or confirmation after receiving payments.
Similarly, when you make a payment by cash, bank transfer, or any other means, the Transaction will not automatically get created. You need to manually create a paid Payment Transaction to the person and have him approve the Transaction. Otherwise, your Balance with that person will remain unchanged. This is different from savings Received Payment Transactions, where approval is not required. The requirement for approval in this case is to prevent anyone from assuming that you owe him money. If someone creates a Payment Transaction record, you will receive a notification from oSplit. You should check your bank to confirm if you have actually received the transfer, and then choose whether to accept or reject the Transaction.
There are other Transaction types that function similarly to paid Payment but are categorized differently:
Additionally, the payer will receive notifications if the payee has rejected or hasn't acknowledged the transaction for an extended period of time.
Similarly, you can also check people Friends → credit_card Transactions → live_help You haven't Responded to see a list of transactions that you haven't acknowledged.
There are other Transaction types that function similarly to paid Payment but are categorized differently:
- touch_app You Owe which serves as a reminder to someone that they owe you money
- payments Request Payment which acknowledges a payment request and signifies that the person has paid, and your acknowledgement will result in a reduction of your Balance with that person.
Collab Wallet's Balance can be trusted, because in order for a debt to be created, it must either be initiated and approved by you, or generated by the platform itself when you make a purchase or receive a refund.
To monitor transactions that haven't been acknowledged or have been rejected, you can navigate to people Friends → credit_card Transactions → do_not_disturb_on Not Accepted. If a recipient has declined a transaction, it is advisable to communicate with them directly to understand the reason behind their decision.Additionally, the payer will receive notifications if the payee has rejected or hasn't acknowledged the transaction for an extended period of time.
Similarly, you can also check people Friends → credit_card Transactions → live_help You haven't Responded to see a list of transactions that you haven't acknowledged.
Note: Usually you match an actual bank transfer by the transfer code given by the sender. Make sure you didn't double acknowledged more than 1 transaction for 1 transfer code.
Balance
The balance is automatically calculated based on transactions. Just like you can use a credit card to make purchases in different currencies, you can use the Collab Wallet to participate in group buys organized by the same friend in different currencies. Purchases from the same friend and currency are calculated separately, giving you flexibility to use an exchange rate that both parties agree upon. Let's say you purchase a 13,000 yen ticket, a 280 yen parking ticket, and a $50 book from your friend, and your friend purchases a $5 pen from you. oSplit will record these as 4 transactions in 2 different currencies, resulting in two separate balances.
So, you owe your friend 13,000 + 280 = 13,280 yen and $50 - $5 = $45. This will be reflected in your balance on oSplit.
The balance is automatically calculated based on transactions. Just like you can use a credit card to make purchases in different currencies, you can use the Collab Wallet to participate in group buys organized by the same friend in different currencies. Purchases from the same friend and currency are calculated separately, giving you flexibility to use an exchange rate that both parties agree upon. Let's say you purchase a 13,000 yen ticket, a 280 yen parking ticket, and a $50 book from your friend, and your friend purchases a $5 pen from you. oSplit will record these as 4 transactions in 2 different currencies, resulting in two separate balances.
So, you owe your friend 13,000 + 280 = 13,280 yen and $50 - $5 = $45. This will be reflected in your balance on oSplit.
Note: Having a balance in multiple currencies provides users with the flexibility to settle their balances in various ways, including paying off in multiple currencies, a single currency, or a combination of both, as long as both parties agree.
Credit Limit
Similar to a traditional credit card, setting a credit limit allows other users (as participants) to reserve without paying upfront, up to the predefined limit, with the trust that they will pay you back at the agreed-upon time (usually when the Deal ends). When a credit limit is assigned to a friend, his balance with you can go into negative territory, within the specified credit limit.
The credit limit can be arbitrarily set by you for your friends, friends of your friends, or non-friends (you can set this up in account_circle → Preference). You can also set different credit limits for each user (go to Friends → view a friend → set the Credit Limit).
Similar to a traditional credit card, setting a credit limit allows other users (as participants) to reserve without paying upfront, up to the predefined limit, with the trust that they will pay you back at the agreed-upon time (usually when the Deal ends). When a credit limit is assigned to a friend, his balance with you can go into negative territory, within the specified credit limit.
The credit limit can be arbitrarily set by you for your friends, friends of your friends, or non-friends (you can set this up in account_circle → Preference). You can also set different credit limits for each user (go to Friends → view a friend → set the Credit Limit).
Note: the credit limit given by one user to another may not necessarily be reciprocal, as it depends on individual trust levels.
Your balance and the credit limit allows you to reserve without having to pay first. However, just like credit card, if the value of your reservation causes your balance to exceed the credit limit, the system will not allocate your reservation.
In this case, you will need to make a payment first (e.g., transfer money to the organizer) to pay the balance of the CollabWallet, rather than for specific purchases. If you're reserving or accepting reservations for multiple friends, you have a separate CollabWallet with each of them. Just as with multiple credit cards, you can't pay all at once - similarly, you can't settle all CollabWallet balances simultaneously, but rather one by one.
In this case, you will need to make a payment first (e.g., transfer money to the organizer) to pay the balance of the CollabWallet, rather than for specific purchases. If you're reserving or accepting reservations for multiple friends, you have a separate CollabWallet with each of them. Just as with multiple credit cards, you can't pay all at once - similarly, you can't settle all CollabWallet balances simultaneously, but rather one by one.
Incorrect Payment
To err is human.
If the payer enters an incorrect amount or payee is entered for a Transaction that does not require confirmation, the payer can request a balance correction from the payee by creating a toll Refund Transaction without actually making a payment. If the payer enters an incorrect amount or payee for a Transaction that requires confirmation, the payer has the option to cancel the Transaction before the payee confirms it. In cases where the payer enters an incorrect amount or payee, or hasn't made the payment, the payee can reject the paid Payment Transaction instead of ignoring it. This approach ensures proper communication and resolution of the issue.
The payee can re-create a new paid Payment Transaction that the payer can then accept, ensuring the transaction can proceed accurately. If the payer claims to have made a payment but has not done so in full, the payer can amend the payment. At this point, the payee can accept the Transaction, ensuring the correct payment amount is reflected.
To err is human.
If the payer enters an incorrect amount or payee is entered for a Transaction that does not require confirmation, the payer can request a balance correction from the payee by creating a toll Refund Transaction without actually making a payment. If the payer enters an incorrect amount or payee for a Transaction that requires confirmation, the payer has the option to cancel the Transaction before the payee confirms it. In cases where the payer enters an incorrect amount or payee, or hasn't made the payment, the payee can reject the paid Payment Transaction instead of ignoring it. This approach ensures proper communication and resolution of the issue.
The payee can re-create a new paid Payment Transaction that the payer can then accept, ensuring the transaction can proceed accurately. If the payer claims to have made a payment but has not done so in full, the payer can amend the payment. At this point, the payee can accept the Transaction, ensuring the correct payment amount is reflected.
What if a participant fails to pay their owed amount?
The system will still record that they owe you. In such cases, you have several options. You can ask the participant for the money when you meet him in person, or you can block him from participating in future deals. Additionally, you can leave a review reflecting the unpaid amount.
It's important to note that the system does not hold any funds on behalf of participants. As the organizer and friend, you are responsible for ensuring that the owed amount is collected.
The system will still record that they owe you. In such cases, you have several options. You can ask the participant for the money when you meet him in person, or you can block him from participating in future deals. Additionally, you can leave a review reflecting the unpaid amount.
It's important to note that the system does not hold any funds on behalf of participants. As the organizer and friend, you are responsible for ensuring that the owed amount is collected.
Norm
When deals are priced in US$, it is assumed that participants will pay in US$. However, if both the organizer and participant agree beforehand, alternative payment methods such as bitcoin for purchases in yen, US dollar cash for purchases in IDR, or yuan transfer for purchases in yuan can be accepted. Unless an alternative payment time has been agreed upon or the outstanding balance is small enough, it should be settled when the deal ends. This may involve returning any unused balance or refunding it back to the participant, or making additional payments if the deal involved a deposit. Once the payment is made and verified, the payee should create a Receive Payment transaction or accept the Payment transaction and let the system handle the rest of the process.
When deals are priced in US$, it is assumed that participants will pay in US$. However, if both the organizer and participant agree beforehand, alternative payment methods such as bitcoin for purchases in yen, US dollar cash for purchases in IDR, or yuan transfer for purchases in yuan can be accepted. Unless an alternative payment time has been agreed upon or the outstanding balance is small enough, it should be settled when the deal ends. This may involve returning any unused balance or refunding it back to the participant, or making additional payments if the deal involved a deposit. Once the payment is made and verified, the payee should create a Receive Payment transaction or accept the Payment transaction and let the system handle the rest of the process.