Funding Your Account

Each organization is set up with a redemption account. Organizations then fund that account before using points to purchase products. Like a bank requiring a check to be backed by cash, points on the Awardco platform must be backed with enough cash to fulfill all product redemptions. Awardco does not front the cost of your company’s items or purchases. Each organization is responsible for funding its own redemptions on the Awardco platform. Unfunded orders will not be processed and will remain pending until payment is received.

Your organization's Redemption Account is a non-interest-bearing commercial checking account held by Awardco. Funds deposited into this account are used to process and pay for redemptions made by your authorized users on the Awardco platform. Think of it as a holding place for your company's funds dedicated to fulfilling employee rewards. These funds are treated as a liability by Awardco, reflecting that they remain your property until used for redemptions.

The Redemption Account operates under U.S. GAAP (Generally Accepted Accounting Principles), meaning Awardco accounts for remittances to the Redemption Account as a prepaid asset, with amounts only being expensed once redemptions occur. You can monitor the balance and transactions within your Redemption Account through the "Money Spent" and "Money Account" reports available on the platform. Importantly, the Redemption Account is separate from Awardco's operational accounts, and your funds within it are solely used for your organization's redemptions.

How Should the Redemption Account Be Accounted For?

In line with U.S. GAAP (Generally Accepted Accounting Principles) and the matching principle, Awardco recommends that customers account for remittances to the Redemption Account as a prepaid asset. The amounts are only expensed once redemptions actually occur.

To help you reconcile your prepaid asset account, you can use two reports available on the Awardco platform:

• The "Money Spent" report tracks redemptions.
• The "Redemption Account" report shows both deposits into and redemptions from your account.

Funding Methods

There are two methods by which organizations can fund their points:

1) Customer Managed Invoicing: Admins are able to add points to their platform by first depositing funds to back those points through the Billing Page. There are three ways to add funds:

1. Credit Card - Admins are able to deposit funds on the platform with their credit card. Please note that credit card processing via Stripe on the Billing Page (add funds/pay invoices/etc.) is currently only available for organizations on our US instance using USD currency. Card processing fees are variable based on the dollar amount being paid:
   • $0-$499.99 = 5% fee
   • $500-$999.99 = 4% fee
   • $1000+ = 3% fee
2. ACH - Admins are able to upload their bank information to initiate ACH payments directly on the platform. No fee. Points are available for use when funds are received and deposited into the redemption account, which is typically 3-5 business days.
3. Request Invoice - Admins are able to request an invoice which will be sent within 1-2 business days of the request. Once payment is received and deposited into the redemption account, the points will be available for use. For organizations not on our US instance or using currencies other than USD, this is the primary method for funding your account.

2) Invoice issued monthly on points awarded*: In your admin portal on the Awardco platform, add points weekly, monthly, quarterly, annually, or intermittently as needed. On the first of each month, organizations will be issued an invoice for the amount of points awarded during the previous month. Because there are no initial funds in the redemption account, this option requires an upfront security deposit. The security deposit also serves as an overdraft protection against points added, awarded, or redeemed during the month between invoices. This is to help ensure that redemptions continue to run smoothly throughout the month. Awardco recommends 20% of the organization’s annual estimated budget as a security deposit, but this can be discussed with your account manager. If there are insufficient funds in the redemption account, orders will not be processed and will remain pending until payment is received.

             Awarded Plus Credit Invoicing – If your organization has internally fulfilled items displayed for redemption on your Awardco platform, this billing method will bill for points awarded and credit (subtract) any client fulfilled redemptions from the total amount. A csv report can be provided upon request that displays points awarded from the previous month with a credit line item at the bottom representing the value of points redeemed on internal items. 

NOTE: Please keep in mind that this is not a use it or lose it model. Referring back to the bank analogy, this is your money. The purpose of the redemption account is to simply fund your points and assure that orders go through successfully.

*When using PPP, the amount billed is determined by the base value of the points that are awarded, not necessarily the amount of points awarded. The value of the points at redemption may not align with the amount billed due to potential changes in PPP values from the time of issuance to the time of redemption. An announcement is made when updated PPP values are available, but before any changes are made, giving the opportunity to request not to update the PPP values.

Funding Request Invoices

You might periodically receive "Funding Request Invoices" from Awardco. These are recommendations for estimated funds required to fulfill future redemptions and are designed to help you maintain a positive balance in your Redemption Account, similar to a deposit account at a financial institution.

It's important to understand that these requests (often labeled with file names like "SO#####") are not actual invoices and do not represent a payment obligation to Awardco. They are purely suggestions to ensure uninterrupted redemption processing for your employees. While you are not contractually obligated to pay them, maintaining a sufficient balance is highly encouraged for a seamless platform experience. You can also proactively deposit funds without receiving a Funding Request Invoice.

How to Deposit Funds into Your Redemption Account

Remittance information for depositing funds can be found on any of your invoices or Funding Request Invoices. Currently, Awardco accepts the following forms of payment:

• ACH
• Wire Transfer
• Check
• Credit Card: You can also pay for Funding Request Invoices with a credit card via the billing page in your platform. (Please note that credit cards are not currently accepted for direct invoice payments for subscriptions, professional services, or corporate gifting items).

Important Note: While Awardco uses the same bank account to receive both Funding Request Invoice payments and other invoice payments, the funds are reviewed daily and appropriated to their respective accounts (i.e., the Redemption Account for Funding Request Invoice payments and Awardco’s operating account for other invoice payments).