> ## Documentation Index > Fetch the complete documentation index at: https://whalescorp.mintlify.site/llms.txt > Use this file to discover all available pages before exploring further. # Billing & Accounting — Executive Summary > **Audience**: CFO, COO, platform owners\ > **Purpose**: Alignment on the billing business model, commercial terms, and operating processes\ > **Status**: Concept under review — prior to implementation\ > **Technical documentation**: `BILLING.md` (for the development team) ## 1. What the Billing Module Is PostCash is a platform for issuing and distributing digital cheques (prepaid instruments) in USDC. The billing module is responsible for end-to-end accounting of financial flows within the platform, from collecting merchant fees to invoicing instance operators and generating settlement documents for distribution relationships. The module serves three purposes: 1. **Accounting** — every fee charged and collected by the platform is recorded in an immutable ledger. 2. **Invoicing** — monthly invoices are issued to instance operators for infrastructure usage. 3. **Merchant settlements** — agency reports and settlement documents are generated for distribution transactions. ## 2. Business Model: Platform Revenue Sources The platform generates revenue on two levels. ### Level 1 — Infrastructure Fees (already implemented) The platform charges a fee for each issued cheque. The fee is collected automatically from the merchant’s wallet when the cheque is funded. | Fee Type | Charged To | Collection Method | | :- | :- | :- | | Issuance fee | Merchant | Collected automatically when the cheque is funded (blockchain) | | Redemption fee | Recipient | Deducted from the cheque value upon redemption | | Exchange markup | Recipient | Embedded in the FX rate | | Fiat on-ramp fee | Recipient | Added to the bank transfer amount | Pricing plans are configured individually for each merchant through the fee tier system. The default rate is 2% plus a fixed component, with a minimum of 0.25 USDC per cheque. ### Level 2 — Distribution Model (agency structure) The instance operator (the Issuer) distributes physical cheque batches through merchant distributors. In this model, the cheque is treated as a product with a face value. **Key principles of the model:** * The merchant takes a batch of cheques **on consignment**, rather than purchasing it outright. * The merchant sells the cheque to the end customer and immediately **activates** it, for example at the point of sale. * The merchant settles with the Issuer for the face value of activated cheques **once per settlement period**, typically monthly. * Unfunded or unsold cheques that are not sold within the allowed period are **returned**, and the merchant’s obligation is cancelled. ## 3. Distribution Model: Merchant Economics ### Merchant compensation structure The merchant receives income in two forms, intentionally separated for tax optimization purposes. **Form 1 — Agency commission (upfront, paid by the customer)** The merchant adds a small markup to the cheque face value when selling to the end customer. This is the merchant’s declared revenue and taxable base. *Example:* a \$100 USDC cheque → the customer pays €92.46 (at the FX rate plus a 0.5% markup) → the merchant remits €92.00 to the Issuer and keeps €0.46. **Form 2 — Retroactive bonus (post-settlement, paid by the Issuer)** After successful settlement for the period, the Issuer pays the merchant a bonus based on settled transaction volume. This bonus is a payment from a foreign legal entity and typically benefits from a more favorable tax treatment. *Example:* settled volume of \$10,000 USDC → 1.5% bonus → \$150 USDC. **Combined merchant economics:** | Item | Amount | | :- | :- | | Cheques sold | 100 × \$100 = \$10,000 USDC | | Collected from customers | €9,246 (at FX rate + 0.5%) | | Remitted to Issuer | €9,200 | | Agency commission | €46 (declared revenue) | | Retroactive bonus | \$150 USDC | | **Total merchant income** | \~\$200 equivalent (\~2.0% of turnover) | | **Taxable base** | €46 (agency commission only) | ### Legal structure The model is structured as an **agency agreement** (principal — Issuer, agent — Merchant). * The merchant sells **on behalf of the Issuer**, not in its own name. * The merchant’s revenue equals only the agency commission, not the full sale price. * The Issuer is incorporated in an offshore jurisdiction (UAE / BVI / Singapore) and is not a tax resident in the merchant’s operating countries. * This is a cross-border B2B supply model: VAT in the merchant’s jurisdiction applies only to the agency commission under the reverse charge mechanism. * **The merchant remains fully responsible for its own local tax compliance.** The platform assumes no liability. ## 4. Document Flow ### Platform level (Platform → Instance Operator) | Document | Content | Frequency | | :- | :- | :- | | **Platform invoice** | Total infrastructure usage fees for the month | Monthly | | **Fee ledger extract** | Detailed breakdown by transaction | On demand / CSV | Invoice statuses: Draft → Issued → Paid / Overdue / Voided ### Distribution level (Issuer ↔ Merchant) | Document | Prepared By | Content | | :- | :- | :- | | **Settlement statement** | Issuer → Merchant | Amount due for activated cheques during the period | | **Agency report** | Merchant → Issuer | Sales report and remitted amounts | | **Bonus notice** | Issuer → Merchant | Retroactive bonus amount payable | ## 5. Billing Modes The platform supports two fee collection modes. | Mode | Description | Status | | :- | :- | :- | | **Automatic (on-chain)** | Fees are collected immediately for each transaction via blockchain | Live | | **Invoice-based** | Fees are accumulated and invoiced monthly | Planned | The mode is configured separately for each instance. Invoice-based billing is designed for large merchants with established settlement processes, removing the need to keep funds in the platform wallet at all times. ## 6. Access Control Each billing function has a configurable access level. Permissions are assigned by role. **Platform-level roles**: Owner, Administrator, Finance, Developer\ **Instance-level roles**: Owner, Administrator, Finance, Viewer **Default principle**: the **Finance** role has full access to all billing functions. Administrators can selectively restrict or expand access for each function through the permissions editor. **Financial actions requiring re-authentication** (additional passkey confirmation): * Invoice finalization and voiding * Payment confirmation * Changes to merchant credit limits * Changes to merchant credit rating * Manual credit freeze / unfreeze ## 7. Controls and Compliance ### Immutability of financial records The fee ledger is **append-only**. Historical records cannot be modified or deleted. This ensures integrity of the financial history and supports audit requirements. ### Audit trail Every administrative action involving financial data is logged: who made the change, when it was made, what was changed, and the before/after values. The log itself is not editable. ### Reconciliation The platform produces monthly reconciliation snapshots to compare actual collected fees with expected fees. Any discrepancies are flagged for manual review. ## 8. Current Implementation Status | Function | Status | | :- | :- | | On-chain fee collection | Live | | Fee ledger | Live | | Invoices (generation, draft, issuing) | Basic version live | | PDF invoice | In development | | Invoice email delivery | In development | | Invoice payment confirmation | In development | | Invoice-based billing mode | In development | | Merchant settlement documents | Planned | | Bonus notices | Planned | | CSV export for accounting | Live | ## 9. Open Questions for Approval **9.1 Pricing plans**\ Are the baseline fees approved? (Default: 2% + 0.25 USDC.) Are special terms needed for certain merchant categories? **9.2 Settlement period**\ The standard period is 30 days. Should exceptions be supported for major partners? **9.3 Retroactive bonus rates**\ What is the base bonus rate, and what volume tiers should apply for higher rebates? (The draft documentation assumes 1.5%, with a \$50k/month threshold.) **9.4 Payment delinquency**\ What should be considered overdue? What is the collection procedure? Should shipment of new cheque batches be blocked automatically? **9.5 Issuer jurisdiction**\ Has the Issuer’s incorporation jurisdiction been confirmed? This affects the legal structure of the agency agreements. **9.6 Settlement currency**\ Which currencies will merchants use to settle with the Issuer? Who sets the FX rate, and as of what date? This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.