Disclaimer

Depending on the country, receiving advertising fees from advertisers for charging the Wallet may be subject to value-added tax or other taxes. This aspect needs to be verified and handled by the retail platform. Moloco does not interfere with any tax-related processes required for using the Wallet function.

Introduction

The Wallet function in Moloco Commerce Media provides various features, such as prepaying advertising expenses, granting credits, and viewing advertising expenditure details for each advertising account (Ad account). This enables retail platform users to use a prepaid or the traditional post-payment method for advertising expenses. It also allows providing credits for advertising expenses based on promotions and events.

Concepts

Below are the key concepts and terms necessary to use the Wallet function:

Platform

The platform represents your marketplace using Moloco Commerce Media’s Sponsored Ads. Moloco will provide you with a Platform ID when you onboard an account with us. This ID is required to make API requests to Moloco Commerce Media APIs.

Ad Account

Advertisers who wish to use platform advertising services are provided with an ad account. For more information on ad accounts, please see Solution components.

Wallet

The Wallet is a virtual wallet that holds the advertising expenses for Moloco Commerce Media. Each Ad account is automatically assigned one Wallet. A Wallet has two accounts, and they can be charged, held, and used separately, depending on their purposes:

• Prepaid: This balanced account is for ad budget funds, excluding taxes advertisers procure to run their campaigns.
• Credits: This balanced account is for any funds your marketplace offers your advertisers for purposes including but not limited to promotional events, supporting their ad business growth, and discretionary compensations.

Credits and Prepaid Accounts

When deducting advertising expenses during ad serving, the deduction will start from the Credits account before the Prepaid account. The deduction will be made from the Prepaid account if no funds are in the Credits account.

For example, with $1,000 in Prepaid and $1,000 in Credits, if a deduction of $1,500 occurs during ad serving, the $1,000 in Credits will be used first. Then, $500 will be deducted from the Prepaid account, resulting in a total balance of $500 in Prepaid and $0 in Credits.

For platforms using the Wallet function, if the remaining balance in an advertising account's Wallet is less than a certain amount (BalanceLimit) (the total balance of Prepaid and Credits in the Wallet < BalanceLimit), the advertising account will be automatically deactivated. When the advertising account is deactivated, all campaigns under that account will be suspended, and ads will not be served. If you do not wish to use automatic deactivation, please contact your Moloco representative.

Platforms can also opt-in to set a low wallet balance threshold to send notifications for low-balance ad accounts. Unlike BalanceLimit, ad accounts are not deactivated if their remaining balance is less than the low wallet balance threshold. Instead, these ad accounts will receive warning notifications stating their current low balances. This value is also configurable. Please contact your Moloco representative if you want to use this notification service.

If an advertising account is deactivated due to insufficient balance, even if the Wallet is charged to an amount exceeding the BalanceLimit through the TopUp API, the advertising account will not automatically activate. The activation of the advertising account needs to be done separately by the platform owner.

For example, say the balance limit is set to $2,000, the total balance in the Wallet is $1,900, and the advertising account is deactivated. Even if $10,000 is charged through the TopUp API, resulting in a total balance of $11,900, the advertising account will not automatically activate.

Define Your Policies

Due to the above characteristics, several policy decisions are required to use the Wallet function.

• Setting the BalanceLimit amount.
• Deciding whether to automatically deactivate advertising accounts when the Wallet balance is insufficient (ad account auto-deactivate).
• Deciding whether to use low balance warning notifications for advertising accounts when the Wallet balance is lower than the low wallet balance threshold.
• Determining the timing and method of activating advertising accounts when charging the Wallet (ad account activate).
• Establishing the refund process for the Wallet PRE_PAID account.

Once these decisions are made, please share the details with your Moloco representative.