Introduction

After funds are split they are held on the virtual accounts of your platform and the sellers.

Reconciling payments #

In order to create available balances, split payments need to be reconciled. Payaut will need 3 items to reconcile a transaction:

• The split payment instruction (API): the information that will be sent by the merchant through the API to Payaut on how to split a payment.Note: the platform is responsible for sending the API requests
• The funds to be transferred to the Payaut bank account. Note: the platform is responsible for configuring the Payaut bank account with the PSP (see above at ?)
• The PSP report. Note: Payaut is responsible to pull these reports from the PSP directly. We will need your support in some cases to setup an API/SFTP channel to pull the reports automatically

If the transactions are not yet successfully reconciled, there will be no balance on the designated virtual accounts. Once the transactions are reconciled, positive balance will display on these virtual accounts.

Balances #

Virtual accounts can have balances in two states:

• pending: the funds are not yet available to payout because Payaut still has to receive the funds for this split from the PSP;
• available: the funds can be paid out

To get the available balance, you can call our API GET/balance endpoint

Holding funds #

Payaut holds PSD2 license 3 & 5. With our license we can operate across Europe through license passporting which is already started/completed in several European countries e.g. Germany, France, Belgium, and therefore is only allowed to hold the funds for up to 60 days from the creation of the split.

This could be a limitation for businesses where the funds are transferred to the seller, before the actual delivery of service takes place in the future. For instance, this could be a limitation for hotel booking platforms where the buyer’s stay at the hotel happens a long time after the payment is made and the funds are transferred.

Transfer funds #

With Payaut, it is possible to move funds between accounts in the Payaut environment. Reasons being subscription fees, monthly fees, or corrections.

Refunds during go-live #

When you go-live with Payaut, Payaut will reconcile all the transactions, split the amounts between yourselves and the sellers and take care of the payouts.

A situation that might occur is that refunds come in for transactions that were processed before you went live with Payaut. In this case Payaut did not receive the funds for the original transaction, and can therefore cause the sellers balance to go negative.

For this purpose, Payaut will analyse the business before go-live and will configure a so-called holding period. This period is disallowing Payaut from paying out the commission, in order to cope with the incoming refunds.

The negative balances from the sellers will be equalised to zero by using that balance that is on your commission account.

After the holding period the payouts for all your sellers and the commission account will occur with the frequency that has been agreed upon.