Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 239

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 239
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 a share of the total interchange fees charged on each debit card transaction. Interchange
fees are set by Visa, dependent on the merchant and payment type, and charged as a percentage of the total sale. The Company has determined
that the customer in these transactions is the end user of the Fold application that has accepted our terms and conditions and accepted
the terms of our Cardholder Agreement.

Additionally, certain fees are charged to our
cardholders depending on their membership tier or the nature of the transaction. These fees primarily include instant deposit and withdrawal
fees, international transaction fees, and ATM fees. These fees are stated as either a percentage of each transaction or as a fixed dollar
amount depending on the nature of the transaction.

The Company’s performance obligation for these
revenues is the maintenance of a mobile application and financial payments platform consisting of a series of distinct elements that are
substantially the same and have the same pattern of transfer over time. Although the issuance of a debit card, the processing of the funds
flows of a transaction, and the collection of related fees are separate actions within the overall service offering, the combined service
offering is greater than the sum of those component goods and services.

Under ASC 606-10-25-15, the processing of each
transaction within this offering is a series of distinct goods or services provided over time that are substantially the same and have
the same pattern of transfer to the customer. The Company’s promise to its customers is to act as the principal to perform an unknown
or unspecified quantity of tasks, and the consideration received is contingent upon the customers’ use (i.e., volume of transactions
processed); as such, the total transaction price is variable. However, the Company does not estimate variable consideration in these circumstances,
as the transaction price is known, distinct, and complete at the time of transaction. In addition, the Company applies the right to invoice
practical expedient to its debit card program revenues as each performance obligation is recognized over time and the amounts invoiced
are reflective of the value transferred to the customer. This transaction price is reduced by the fair value of Revenue Rewards earned,
as the Company has identified that Revenue Rewards represent non-revenue elements to be excluded from the transaction price. The Revenue
Rewards meet the definition of an embedded derivative requiring bifurcation and measurement subject to the scope of Topics outside of
ASC 606.

Banking and payments – Visa incentive

Fold entered into a US Participation Agreement
(the “Visa Agreement”)