# Platform Fee and Split Payments

## Overview

[Marketplaces](/documentation/overview/marketplaces#marketplaces) that use Ryft often require more complex payment structures to accommodate multiple parties involved in a transaction, enabling a seamless transaction experience for both buyers and sellers.

**Platform Fee and Split Payments** allow the Main Account holder to optionally charge a platform fee for facilitating the transaction while simultaneously splitting the remaining payment amount among various [Sub-Accounts](/documentation/overview/core_concepts/ryft_entities#sub-accounts).

## Platform Fee

A **Platform Fee** is a payment type where the Main Account holder enables funds to be automatically routed to a designated Sub-Account (vendor), while also charging an optional fee for the platform's services.

In this scenario, the Sub-Account receives the payment made by the customer, minus the platform fee retained by the Main Account holder. This fee can be a fixed amount or a percentage of the total transaction value, and it is deducted before the funds are transferred to the Sub-Account.

This processing model is particularly useful for businesses that:

- Operate as a marketplace, connecting buyers and sellers.
- Provide a whitelabel platform where they facilitate transactions between third-party vendors and customers.


In this model, the payment **Statement Descriptor** will reflect the specific Sub-Account involved in the transaction, ensuring clarity for the customer regarding who they are paying.

## Split Payments

[**Split Payments**](https://www.ryftpay.com/capabilities/split-payments) allow the Main Account holder to divide a single payment transaction among multiple Sub-Accounts (vendors) based on predefined amounts or percentages. This is particularly useful in scenarios where a transaction involves multiple sellers or service providers, and the payment needs to be distributed accordingly.

For example, in a marketplace setting where a customer purchases items from different vendors in a single transaction, the payment can be split so that each vendor receives their respective share of the total amount. The Main Account holder may retain a platform fee from the total transaction amount before distributing the remaining funds to the Sub-Accounts.

This payment type is ideal for businesses that:

- Facilitate transactions involving multiple sellers or service providers.
- Need to manage complex payment distributions while maintaining a single transaction for the customer.


In this model, the payment **Statement Descriptor** will reflect the Main Account holder's information, as they are the primary entity managing the transaction and distributing funds to the Sub-Accounts.