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.
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 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.