Introduction
Fund flow
Payaut is collecting funds from the PSP’s that our merchants are working with. These funds are collected on our default account, and assigned to the merchant’s account (division unallocated) once we can confirm that funds below to a specific merchant.
Once splits start to hit the Payaut platform, funds will be distributed between the marketplace (division) and its sellers. Balances will move from pending to confirmed once PSP reports and funds are coming in. Below a description of the meaning of all available balances.
Balances
DIVISION UNALLOCATED
This balance represents the funds that have arrived on the Payaut bank account and have been matched to a PSP report, but Payaut have not received a split for them yet.
PENDING DIVISION BALANCE
This balance represents the pending commission for the marketplace. The reason that the commission is pending is either because Payaut have not yet received a split for them, or the submitted split has not yet been matched to the PSP report, or the funds have not yet arrived on the Payaut bank account.
PENDING SELLER BALANCE
This balance represents the pending payout amount for the seller. A pending split creates balance here, but the balance is not confirmed as the funds did not arrive yet on the Payaut bank account or the split did not match with a PSP report yet.
PSP & PAYAUT FEES
PSP fees and Payout fees are deducted from the confirmed marketplace balance, and subsequently also subtracted from the marketplace payout balance.
CONFIRMED MARKETPLACE BALANCE
This balance represents the confirmed commission for the marketplace that is ready to be paid out after the Payaut fees and the PSP fees are deducted. It is created when a submitted split matches both with the obtained PSP report and the funds received on the Payaut account for that specific PSP report.
CONFIRMED SELLER BALANCE
This balance represents the confirmed payout amount for the seller. It is created when a submitted split matches both with the obtained PSP report and the funds received on the Payaut account for that specific PSP report.
It is possible to get the payout balance using our API’s using our GET/balance endpoint.
MARKETPLACE PAYOUT BALANCE
This balance represents the amount that is ready to be paid out after the pending refunds, the pending payouts and the PSP and Payout fees have been deducted from the confirmed balance.
SELLER PAYOUT BALANCE
This balance represents the amount that is ready to be paid out after the pending refunds and the pending payouts have been deducted from the confirmed balance.
Reconciling payments
In order to create confirmed 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
- The PSP report Note: Payaut is responsible to pull these reports from the PSP directly. We will need the support from the merchant to setup an API/SFTP channel to pull the reports automatically.
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.