Common prctices for receiving tips
Disclaimer: Nothing contained herein constitutes scientifically proven information, financial, tax, or legal advice, and should always be verified with a certified accountant and legal expert
Automatic Tip Confirmation (Stripe)
Tip Confirmation by the Artist (IRIS)
Automatic Tip Confirmation (Stripe)
How it works
The artist enables Stripe and forwards the connection link to their employer. The employer create an acount to Stripe, if they have not, and connects it with the platform. If the artist operates their own business, they connect their own business account.
Process
During the show, tips are transferred directly to the connected account and confirmed automatically by our system. This prevents the artist from being distracted by manually confirming tips, while the tipper feels secure that their contribution was recorded.
Payouts & Accounting
The employer pays 100% of the tips to the artist as sent by the audience, without deducting Stripe's processing fee. Stripe fees are recorded as business expenses for the business, just as with POS tips for service staff.
Important Note
Posting a tip does not guarantee that the transaction has been completed. A user might change their mind, make a mistake, or request a refund/chargeback through Stripe, where applicable. Sfougara follows recommended technical practices to verify tip transfers. The owner of the connected account should always verify the realization and total amount of tips directly within Stripe.
Tip Confirmation by the Artist (IRIS)
How it works
The law in Greece also allows artists to receive tips directly into their personal account while working. When enabling IRIS payments, the artist must enter and select the mobile phone number connected to their personal bank account.
Process
When an audience member chooses to send a tip, they receive the artist's phone number along with a unique transfer reference. Since IRIS transfers are not confirmed automatically, the artist manually checks and verifies payments during the performance using the unique reference generated by the platform.
Payouts & Accounting
Tips arrive directly in the artist's personal bank account, and the artist is responsible for declaring them to the tax authorities as tip income.
Important Note
Posting a tip does not guarantee that the transaction has been completed. A user might change their mind, make a mistake, or request a refund where applicable. The owner of the connected account should always verify payments directly, through is account's bank.