# Real-Time Allocation of Loopit Invoice Credits via Stripe

When using **Stripe** as your payment gateway through Loopit, a small portion of each transaction is automatically allocated in real time toward your Loopit invoice. This reduces your invoice balance at the end of the billing period and supports a more predictable and transparent billing experience.

## How it works

Each time a Stripe payment is processed through the Loopit platform, a **portion of the transaction (typically 2.5%)** is automatically set aside and credited against your Loopit invoice.

This appears on your **Stripe payout reports** as a line item called **“Loopit Application Fee.”** These allocations are pooled throughout the month and reflected as a **credit note** on your next Loopit invoice.

> For example, allocations collected throughout **July** will appear as a credit on your **July invoice**, issued in **early August**.

This allocation applies only to payments processed through **Stripe via Loopit**. Other payment methods (such as direct debit, EFT or BPay) are not included in this mechanism.



## Purpose of Real-Time Allocation

This real-time allocation approach supports:

* **Reduced end-of-month payments** by offsetting part of your invoice balance automatically
* **Simplified reconciliation**, with clearer visibility into how and when platform fees are collected
* **Operational continuity**, especially during periods of high transaction volume

All other charges on your invoice (e.g. for fleet, checks, telematics or insurance add-ons) will continue to appear in full. The allocated Stripe amounts are applied automatically as part-payment.



## In the case of arrears

If your account falls into **arrears**, the real-time allocation for each Stripe transaction is **temporarily increased**. This consists of:

* The standard **2.5% platform fee**, plus
* An additional **prepayment** to assist in reducing the overdue balance, based on the size of arrears, and typical transaction volumes

Once your account is back in good standing, the allocation reverts to the standard 2.5%.

This process is automated and ensures continued service while supporting gradual recovery of any overdue amounts.



## Frequently Asked Questions (FAQ)

<details>

<summary>When does real-time allocation occur?</summary>

Immediately, each Stripe transaction processed through Loopit has the allocation applied at the time of payment.

</details>

<details>

<summary>What percentage is allocated?</summary>

The standard allocation is **2.5%**. For accounts in arrears, this may be increased temporarily.

</details>

<details>

<summary>When are credits applied to invoices?</summary>

Credits are applied to the invoice corresponding to the month in which the Stripe payments were processed. For example, allocations made in July appear on the July invoice, issued at the start of August.

</details>



