In separate charges and transfers, where does money initially land?

• A. The merchant
• B. The customer
• C. The platform
• D. The connected account

Answer: (C)

In this flow, the money lands on the platform’s balance first. When you use separate charges and transfers, the charge is created on the platform, so funds are deposited into the platform's account initially. From there, you can apply an application fee if needed and then execute a separate transfer to the connected account to pay out the seller.

This arrangement gives the platform control over the funds—holding them so fees can be collected and payouts can be timed or staggered as needed—before sending the remainder to the connected account. The recipient isn’t the merchant yet at the moment of the initial landing, and the customer is the payer, not the recipient, so the platform is the correct landing point.