Split Payments

      Split Payments

        Article Summary

        Professional and private traders increasingly choose to offer products or services through online platforms. According to the new PSD2 regulations of the Dutch Bank, it is not allowed to receive money as a platform and to distribute these yourself among the various third parties of the platform without being a financial institution. As a Payment Service Provider, Buckaroo does have the necessary licenses and certifications to process split payments to multiple parties on behalf of a central website facility.

        Split Payments: third parties and online payments

        An online platform uses a different business model than a regular webshop. Various third parties can sell their products or services through one central location/website. This often results in a "mixed basket" at the end of the purchasing process, with products of multiple third parties. The payer settles the total amount of the purchase through the checkout of the online platform. Payments to the third parties are done using "split payments". Within a Split Payment solution it can be determined how the purchase amount should be divided among the third parties and what amount goes to the central website facility. Split transactions within the Buckaroo environment are a special transaction type for the distinction.

        Payment Methods

        Within Split Payments there are Dutch and Belgium payment methods available. For example : iDEAL, Bancontact, Afterpay and Sepa Direct Debit.

        • Contracts and payouts for Split Payments are handled by Buckaroo
        • The third party payouts are handled by Buckaroo. The Central Website facility is responsible for the contract with the third party.
        • Split payments can:
          -1- be executed immediately
          -2- be executed with a specified delay
          -3- be executed leter, using a API call
        • Buckaroo is responsible for the identification and on boarding (KYC) of the third parties of the Split Payment Solution
        • Buckaroo opens up the accounts of the third parties on behalf of the Split Payments Central Website facility
        • The feedback of the payment to the Central Website facility and the split payment to the third party is real time
        • Refunds are executed via Split Payments, including the underlying settlement logic

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