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Multiple Choice

Which of the following is NOT a characteristic of Destination Charges?

Destination charges occur when the platform charges the customer on behalf of a connected account and then routes the funds to that connected account, with the platform taking a fee. This setup means the charge is issued by the platform and the actual recipient is a specific connected account, with funds transferred accordingly. The customer typically sees a single charge coming from the platform, rather than from the connected account, so they may not know which connected account will ultimately receive the funds. That’s why the idea that “the customer is aware of their transaction” isn’t a defining characteristic of destination charges. What is characteristic is that there is a single destination (one connected account), a direct relationship between the platform and that connected account to move funds, and the transaction is processed through the platform (not directly by the connected account).

Destination charges occur when the platform charges the customer on behalf of a connected account and then routes the funds to that connected account, with the platform taking a fee. This setup means the charge is issued by the platform and the actual recipient is a specific connected account, with funds transferred accordingly. The customer typically sees a single charge coming from the platform, rather than from the connected account, so they may not know which connected account will ultimately receive the funds. That’s why the idea that “the customer is aware of their transaction” isn’t a defining characteristic of destination charges. What is characteristic is that there is a single destination (one connected account), a direct relationship between the platform and that connected account to move funds, and the transaction is processed through the platform (not directly by the connected account).