Example use
Let's say we have a customer with their first visit at a FencyPay merchant (Merchant A) and they spend $50. The customer earns $2.50 and we bill Merchant A $1.25 for their half to create it on the network and transfer it to the customer.
The customer continues to shop at other merchants. Let's assume they spend at three other merchants:
- $25 at Merchant B ($1.25 bonus; 62.5 cents billed to that merchant)
- $40 at Merchant C ($2.00 bonus; $1.00 billed to that merchant)
- $50 again with Merchant A ($2.50 bonus; $1.25 billed to merchant)
At this point the customer has $8.25 in their wallet. They check their map and see that their rewards are valid at a new used bookstore they have been wanting to try (Merchant D).
They buy a used book for $6.00 and elects to use their FencyCoins. We verify the transaction with the merchant, deducting $6.00 from the customer balance (they'll have $2.25 remaining). We'll add the $6.00 to the merchant's wallet and bill them $3.00
At that point the $6.00 in Merchant D's have been full paid for by the 4 merchants and are fully funded on the network. If the customer returns to Merchant D and spends $12.00 on another book, they will earn 60 cents as a bonus and we pull that from Merchant D's wallet AT NO COST and transfer it to the customer. Those rewards will live on in the system and move around from merchant to merchant with NO FURTHER TRANSACTION FEES.
If Merchant D needs cash and wants to turn in $50 in rewards they have redeemed we will transfer the funds to their bank account minus a 6.5% fee (they'll get $46.75). Those coins will be removed from circulation and destroyed. More coins will be created again when consumers make purchases and the cycle repeats itself.
The best scenario is that merchants keep as many FencyCoins in the system as possible to move around the economy with NO TRANSACTION FEES.
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