Which of the following best describes split funding?

Split funding refers to a payment processing arrangement where a capital advance is repaid through a percentage of card processing transactions. In this scenario, a business receives an advance, which is then gradually repaid by deducting a predetermined percentage from the revenue generated through card transactions. This method allows businesses to access necessary funds while managing repayment in conjunction with their sales performance.

The other options do not accurately capture the essence of split funding. Using one card for multiple purchases does not involve dividing funds or revenue. Dividing the transaction amount between two bank accounts may refer to allocation or distribution, but it does not specifically address the repayment aspect tied to card processing. Lastly, separating charity contributions from business revenue pertains to accounting practices rather than the structured repayment mechanism inherent to split funding. Therefore, the correct description of split funding is best identified in the context of capital advances repaid through a percentage of card processing transactions.