Reimbursement Mechanics

Payment Architecture & Fees

FairSplit uses Stripe Connect to process reimbursements. Money transfers directly between parents, and FairSplit never possesses or controls user funds.

Direct Transfer Flow

How Reimbursement Money Moves

1. Log Expense

Parent A (Payer)

Logs $100 medical co-pay with receipt. Requests 50% ($50) reimbursement.

2. Browser Approval

Parent B (Reimburser)

Receives email payment link, reviews receipt in browser, and approves payment.

3. Direct Processing

Stripe Connect

Stripe processes $50 transfer directly from Parent B to Parent A's connected bank account.

4. Bank Payout

Parent A Bank

Funds settle in Parent A's bank account in 1–3 business days via ACH payout.

Fund Security Guarantee: FairSplit is not a bank or escrow agent. Funds are transferred directly via Stripe Connect. FairSplit never holds user money in proprietary intermediary accounts.

Transparent Fee Structure

  • Monthly Subscription: No monthly subscription.
  • Platform Withdrawal Fee: FairSplit charges a 3% platform withdrawal fee when a parent pays out reimbursed funds to their bank.
  • Stripe Processing Fees: Standard Stripe processing fees (2.9% + $0.30) apply to credit card / ACH payments and are paid by the sender.

Payment Authorization & Timing

When Parent B approves a reimbursement request, payment authorization occurs immediately through Stripe checkout. Card payments process instantly; ACH bank transfers typically settle in 1–3 business days depending on standard banking rails.

Failed Payments, Refunds & Disputes

If an ACH transfer fails due to insufficient funds or invalid bank details, Stripe notifies both parties. If a charge is disputed or reversed through a card issuer, the transaction status is logged automatically in the FairSplit connection ledger for legal transparency. External payments made via Zelle, CashApp, or cash can also be logged manually with mutual confirmation.

Identity & Bank Verification

Before receiving payouts, parents complete standard Stripe Connect onboarding, including identity verification (KYC) required by federal banking regulations.

Prelaunch Access

Clear, transparent co-parenting payments.

Learn more about FairSplit's reimbursement tools and prelaunch features.

Join Early Access →

Questions? hello@fairsplit.live