Caddie at a Private Club
An organizer at the club like the caddie master or the Head Pro must use Circuit Caddie to email a secure
invitation to each caddie in order to use Circuit Caddie at the club. Once the caddie has clicked the
secured link in the email invite and entered all of the required information, then they are ready to get
paid through Circuit Caddie. (Soon, organizers will be able to enter cell phone numbers for caddies to
receive their secure invite via text message.)

Member at a Private Club:
An organizer at the club like the caddie master or the Head Pro must use Circuit Caddie to email a secure
invitation to each member in order to use Circuit Caddie at the club. Once the member has clicked the
secured link in the email invite and entered all of the required information, then they are ready to pay
caddies using the Digital Chit quickly and easily. (Soon, organizers will be able to enter cell phone
numbers of members into Circuit Caddie in order to receive their secure invitation to use Circuit Caddie
via text message.)

Club:
Once a club has signed up for Circuit Caddie, it is as easy as copying and pasting a list of the caddies’
email addresses and the members’ email addresses into the “add users” section of the application.
Circuit Caddie will individually email each person a secure link to create their new Circuit Caddie account
underneath the club. (Soon, organizers will be able to enter cell phone numbers for members or caddies
into the “add users” section of the application so that the users may receive their secure invites via text
message.)

Nothing. All of the fees associated with using Circuit and any credit card processing fees are paid by the
member at the time of each transaction.

No. If the member has uploaded their ACH Banking information into Circuit and uses ACH for payment,
then Circuit Caddie pays Stripe’s ACH and active user fee out of the Circuit fee.

Yes. The fees charged by the credit card companies are charged on top of the Circuit fee. For members
who choose to use a credit card instead of uploading and choosing their ACH banking information, they
will see a separate line item for the credit card fees.

Stripe is one of the most respected and secured payment processing companies in the world. Stripe
processes payments for companies like Google, Amazon, Spotify, Lyft, Fitbit, Pinterest and many more.
To learn more about why Circuit chose Stripe to process our payments, please visit
https://stripe.com/customers#b2c-marketplaces.

Specifically, Circuit chose to partner with Stripe
because of their security, the cost of their fee structure relative to the payment processing industry and
because of their development friendly platform for application development. Circuit will continue to
develop user friendly features to enhance user experience because of Stripe’s developer friendly
environment.

Yes to both. Stripe handles all of the financial and payment processing compliance related to the Circuit
application, so all users will be directed by Circuit into Stripe to seamlessly enter their information.

Members will need only one payment method on file. Credit cards are the easiest to enter and validate
but are the most expensive option to the user. ACH banking information is way less expensive to
process but takes a few days to get set up.

Circuit chose to allow either payment methods or both payment methods to be saved into Stripe.
Typically, users will initiate the ACH process and at the same time enter their credit card information in
order to make payments right away. So, for the first few payments through Circuit, they might have to
pay more fees to use their credit card until the ACH process is completed. Once their bank information
is confirmed by Stripe, users can save on some unnecessary expenses.

If members have both ACH and credit card information in their Stripe account, Circuit will ask which
method the user would like to use in order to process the payment for that specific transaction.

Yes, using ACH payments by inserting banking information is by far the least expensive way to use
Circuit. Unfortunately, it just takes a little longer and requires a little bit more effort to validate the bank
account.

After inserting the user’s banking information into Stripe, Stripe will make two micro deposits into the
user’s bank account within the next two business days. After the user sees the deposits in their bank,
they are required to enter those two specific amounts back into Stripe to fully validate that bank
account.

Credit cards are far easier to enter and validate inside of Stripe; however, the credit card processing fees
are far greater than the ACH fees. Circuit suggests entering both, and as soon as the ACH banking
account is validated, Circuit recommends choosing to process payments through the ACH account in
order to reduce fees.

Yes, Stripe will ask caddies for additional information from time to time. Since Stripe monitors and
demands full legal compliance within the financial regulations. When certain earning levels are reached,
Stripe may ask for more information to further validate them as they become relevant to different
earning levels. Circuit and Stripe both fully and openly comply with all financial regulations in order to
process all payments legally and ethically.

Members should not be asked for more personal information unless Stripe notices something has
changed in the user’s profile versus publicly available data.

No. Circuit is merely a passthrough of all private information. Because Stripe is so secure, Circuit trusts
Stripe with all of our users’ critical information and does not hold onto any of it.

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Stripe has been audited by a PCI-certified auditor and is certified to PCI Service Provider Level 1. This is
the most stringent level of certification available in the payments industry. To accomplish this, Stripe
makes use of best-in-class security tools and practices to maintain the highest levels of security. To
learn more about Stripe security, please visit: https://stripe.com/docs/security/stripe.

Circuit is connected to the Stripe accounts of both the member and the caddie. Once all payments are
confirmed by all of the members in a loop in Circuit, Stripe immediately initiates payments for the
caddie out Circuit’s account balance in Stripe. At the same time, Stripe initiates the debit from their
respective ACH or credit card accounts of the members. When Stripe receives the payment from the
member, it replenishes Circuit’s Stripe account.

Yes. All users must be 18 years old. (Circuit is currently developing a process through Stripe to allow
parents of children over 13 years old to create a Stripe account on their children’s behalf. Please expect
children over 13 years old to be able to use Circuit by the Spring of 2021.

No. All fees are paid for by the member with each transaction. (At some point soon, Circuit will be
introducing “Instant Pay” for caddies to be able to receive their pay within 2 hours of the closed loop.
Circuit will pass the fees associated with expediting payment along to the caddies who choose to use
that service.)

For the second use of Circuit and after, the caddie will receive the money in their accounts within a 48-
hour time frame. Unfortunately, for the first transaction, Stripe typically takes 2-7 days after the loop
payment has been approved by the members for the money to appear in the caddie’s bank account.

Yes! Our data suggests that when being paid digitally, users are much more generous. Caddies stand to
earn 10-20% more than they would when being paid with cash.

Circuit Caddie charges the member a fee which is the greater of 5% or $2.50 per transaction.
If the member uses ACH, the Circuit fee is their only fee on top of the amount that they choose to pay
their caddie.

If the member uses a credit card to process payment, there is an additional 3.5% charged to cover the
credit card processing fees.

For information about how much Stripe charges Circuit, please click here
https://stripe.com/connect/pricing and look under the Express and Custom sections.

Because Circuit Caddie is the digital payment processing marketplace that brings together the members
and the caddies, using Circuit Caddie eliminates the responsibility of the club or the member from
having to issue a 1099-MISC to any caddie who is paid more than $600 in a given year.

Instead, Circuit Caddie and/ or Stripe will issue a 1099-K if any caddie meets all three of these criteria: 1.
The Caddie is based in the US. 2. The caddie earns $20,000 through Circuit Caddie in a given year 3. The
caddie is involved with 200 transactions in a given year.

Caddies should consult a tax expert about taxable income. (Although the information is currently
available in Stripe, Circuit is in development on a self-serve tax reporting service for any caddie who may
desire to get access to tax documents at any level, even if they do not meet the stated thresholds
above.)

The default setting is for all users to be able to see the email addresses of all of the other users. If you
should want to make it so that caddies cannot see the members email addresses, please just let us know
during set up.

No, the opposite actually.

Using Circuit Caddie reduces the amount of time wasted handling cash,
processing chits, distributing member surveys, compiling survey data and reconciling accounting
records. Circuit aims to provide the club with a quick and easy way to manage their caddie program,
providing employees with more time to conquer other tasks at the club.

Yes. Caddies would be classified as independent contractors and would not be considered employees of
Circuit Caddie, the club, or the member.

Most clubs tell the caddies that they are independent contractors, but at the same time, they do not
follow the official IRS guidelines that differentiate a true independent contractor relationship versus an
employee relationship. Unfortunately, justified or not, clubs like Garden City in New Jersey, Streamsong
Resort in Florida and Southampton Country Club in New York have all had caddies bring lawsuits against
them.

For information about how to properly classify independent contractors versus employees and the risks
associated with misclassification, please go to https://www.irs.gov/newsroom/understanding-
employee-vs-contractor-designation.

Ideally, yes. Circuit Caddie aims to create a marketplace and a contractual relationship between the
caddie and the member one round at a time. The caddie must accept any and all terms and conditions
as determined by the club and their legal representatives prior to starting each round. By highlighting
the specifically important aspects of the relationship prior to the loop, the member and the club
significantly reduce their liability and exposure.

Members are still able to pay their caddies with cash or other touchless payment methods. At the same
time, any member who does not pay using Circuit Caddie will not be protecting himself/ herself or the
club by having the caddie accept the terms and conditions of the loop.

Per their terms and conditions, only Venmo business accounts are permitted to receive money for goods
and services from independent contractors (like caddies). So, using Venmo is an option for clubs as long
as they get all of their caddies to sign up with Venmo Business accounts.

Also important, Venmo business charges very similar fees as Circuit Caddie; however, Venmo business is
not built specifically for golf members, clubs or caddies so it does not reduce liability or provide added
value.

Lastly, Venmo does not offer a Digital Chit where members can access their accounts through a
portal in the golf shop, locker room, first tee or ranger station in order to easily pay their caddie the
same way they used to in the old days, using a chit! For clubs that are trying to keep cell phones away
from the golf course, the Digital Chit allows members to not worry about where they left their cell
phone (or their wallet for that matter!)

At this point, Circuit is only set up to have fees collected at the time of each transaction between the
members and the caddies.

Circuit Caddie is open to developing a pricing structure where the club can
use Circuit as an intermediary. In other words, Circuit would bill the club monthly for all caddie fees
used over a given month. While the bill is accruing, the club can bill the member, thereby cutting down
on the club’s cash conversion cycle. If you are interested in helping Circuit develop such a process for
your club, please contact ss@circuitofficial.com.

Circuit Caddie allows the clubs to create their own member satisfaction survey for each loop. After each
loop, the member may fill out the caddie survey immediately at the Digital Chit or they can opt to have
the survey emailed to them so they can fill it out later.

The survey can have any aspect of caddying that
the club feels might be important to the membership. Want to know if the caddies are slowing pace of
play, raking bunkers, getting distances, or reading greens? Simply ask the members in the survey, and
members are not shy about communicating how each caddie can improve their craft.

Further, the data for each caddie and the entire caddie program as a whole is stored over time so that the individual
caddie and the entire club can see the return on different educational and training initiatives.