Delivery modes

How Local Pass Delivery, Pickup, and Vendor’s Own Delivery affect wallet fields and payouts.

Overview

Local Pass supports three fulfilment modes. The mode determines which wallet fields are populated when an order completes, which in turn affects the net transfer amount at payout time.

The delivery mode does not change the payout transfer formula — it determines which fee fields (particularly merchantSubsidy) are present in the wallet at settlement time.

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Mode comparison

Local Pass Delivery

Local Pass Delivery

A customer places an order and selects standard delivery. Local Pass dispatches a driver from its network to collect the order from the vendor and deliver it to the customer.

How it works:

• Customer pays for delivery at checkout
• Local Pass assigns a driver from its network
• Driver collects from the vendor’s location
• Vendor is not involved in the logistics

Wallet impact:

Field	Populated?	Notes
Total	✅ Yes	Order subtotal
Tax	✅ Yes	Customer-paid tax
Platform fee	✅ Yes	Local Pass service fee
Merchant subsidy	⚠️ Conditional	Populated if vendor contributes to driver costs
Cancellation fee	⚠️ Conditional	Only if vendor cancels the order
Discounts	⚠️ Conditional	Only if vendor applied a promotion

Merchant subsidyis deducted after the Stripe transfer completes, not from the transfer amount itself. It is tracked separately for driver cost accounting purposes.

Pickup

Pickup

The customer places an order and collects it directly from the vendor’s location. No driver is dispatched.

How it works:

• Customer selects pickup at checkout
• Order is prepared by the vendor
• Customer arrives and collects their order
• No delivery logistics involved

Wallet impact:

Field	Populated?	Notes
total	✅ Yes	Order subtotal
tax	✅ Yes	Customer-paid tax
Platform fee	✅ Yes	Local Pass service fee
Merchant Subsidy	❌ No	No driver involved
Cancellation Fee	⚠️ Conditional	Only if vendor cancels the order
Discounts	⚠️ Conditional	Only if vendor applied a promotion

Vendor's Own Delivery

Vendor’s Own Delivery

The vendor uses their own vehicle, staff, or courier to deliver the order. Local Pass handles the order placement and payment, but not the physical logistics.

How it works:

• Customer selects vendor delivery at checkout
• Local Pass processes payment as normal
• Vendor arranges delivery using their own resources
• No Local Pass driver dispatch

Wallet impact:

Field	Populated?	Notes
Total	✅ Yes	Order subtotal
Tax	✅ Yes	Customer-paid tax
Platform Fee	✅ Yes	Local Pass service fee
Merchant Subsidy	❌ No	Vendor handles their own delivery costs
Cancellation Fee	⚠️ Conditional	Only if vendor cancels the order
Discounts	⚠️ Conditional	Only if vendor applied a promotion

Fee summary by mode

Fee field	Local Pass Delivery	Pickup	Vendor’s Own Delivery
Platform fee	✅ Always	✅ Always	✅ Always
Merchant subsidy	⚠️ If configured	❌ Never	❌ Never
Cancellation Fee	⚠️ If cancelled	⚠️ If cancelled	⚠️ If cancelled
Discounts	⚠️ If promotion active	⚠️ If promotion active	⚠️ If promotion active
Driver payout	Handled outside vendor wallet	N/A	Vendor’s own cost

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Merchant subsidy explained

The Merchant subsidyfield appears in the vendor wallet only for Local Pass Delivery orders where the vendor contributes toward driver costs.

What is it?

When a merchant uses their own fleet of drivers and offers free delivery, the customer pays $0 at checkout. In this case, Local Pass covers any outstanding balance owed to the driver at the end of the billing cycle, and the amount is then deducted from the merchant’s wallet.

How is it deducted?

Merchant subsidyis not subtracted from the Stripe transfer amount. It is instead decremented from the wallet balance fields after a successful transfer. This keeps the driver cost accounting separate from the money-in-transit calculation and ensures the Stripe transfer record reflects only the vendor net.

Is it shown to vendors?

Yes. When Merchant subsidy > 0, a “Driver payouts: −$X.XX” line item is shown in the Payment Breakdown section of the Wallet page, along with an info button explaining the subsidy.

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