Payment & Reward Flow

This document describes how subscriptions, points, and referee rewards are handled in Peppercheck, focusing on Stripe Connect integration and operational best practices in Japan.

1. Overview

  • Tasker purchases subscriptions and points from Peppercheck.

  • Tasker consumes points to request reviews.

  • Referee completes reviews and earns rewards.

  • Peppercheck handles payments as a marketplace platform using Stripe Connect.

Perspective difference

UX perspective: It appears as if Taskers pay Referees directly.
Legal/Technical perspective: Peppercheck collects payments first and pays Referees as contractors.

2. Conceptual Roles

Role Description

Tasker

Purchases subscriptions and points, requests reviews

Referee

Completes reviews and earns rewards

Peppercheck

Marketplace platform and payment operator

3. Key Design Principles

  • Subscriptions and points break direct Tasker → Referee payment relationships.

  • Peppercheck acts as the payment intermediary (marketplace model).

  • Referee rewards are treated as contractor payments.

  • UX and wording emphasize "Tasker paying Referee", while the backend remains compliant.

4. Stripe Connect Strategy

  • Account Type: Stripe Connect (Express or Custom accounts)

  • Charge Model: Separate Charges & Transfers

  • Payouts: Referee payouts handled via Stripe balances

5. Reward Timing Design

5.1. Reward Transfer Timing (Peppercheck → Referee Stripe balance)

5.1.1. Chosen approach: Review-based (per completed review)

  • When a review is completed:

    • Reward is finalized in Peppercheck DB

    • Funds are immediately transferred to the Referee’s Stripe balance

    • This does not trigger a bank payout yet

5.1.2. Reasons

  • Immediate visibility of earnings for Referees

  • Small, isolated transactions reduce failure impact

  • Aligns with standard marketplace / gig-economy patterns

  • Simplifies monthly settlement logic

5.2. Payout Timing (Referee Stripe balance → Bank account)

5.2.1. Chosen approach: Monthly automatic payout

  • Stripe handles payouts automatically on a monthly schedule

  • No payout API call required per review

  • Minimum payout thresholds can be applied (e.g. ¥1,000)

6. Fees

  • Transfer (Peppercheck → Referee Stripe balance): No fee

  • Standard payout (Stripe → Japanese bank account): No fee

  • Fees apply only to:

    • Card payments

    • Platform fees

    • Instant payouts (generally unavailable in Japan)

7. Platform Balance Management

  • Transfers require sufficient Peppercheck Stripe balance

  • Peppercheck must maintain a safety buffer

  • Recommended safeguards:

    • Balance threshold checks before transfers

    • Temporary pending state if balance is insufficient

    • Admin alerts for low balance

8. Operational Flow

The following diagram illustrates the lifecycle of purchases, point consumption, review rewards, and final payouts.

Diagram

9. UX vs Legal Separation

  • UI and copy:

    • "Your points are paid to the Referee"

    • "You earned ¥X from this Tasker’s request"

  • Backend reality:

    • Peppercheck pays Referees as contractors

    • Stripe Connect manages compliance and payouts

10. What This Design Optimizes For

  • Clean Stripe Connect integration

  • Predictable payouts for Referees

  • Low operational overhead

  • Scalability

  • Compliance with Japanese payment constraints

11. Out of Scope (Handled Separately)

  • Tax handling and withholding

  • Invoice system considerations

  • Annual payment reports