Making transactions has always been a tedious task for any business. The number of vendors and customers that a business or a marketplace has to deal with requires an organized system that can systematically facilitate transactions. The concept of a split payment gateway is exactly this. To sign up for this service, click the link given below: https://www.cashfree.com/easy-split/split-payment-gateway
What is Split Payment?
When a marketplace receives money from a customer, it has to give a predefined share of the amount to the vendors it bought the goods from. The method of dividing or splitting the payment is what is meant by split payment. In the split payment system, what remains after the split has taken place to different vendors’ channels is the share of the business or the marketplace. The share or commission is the actual revenue of the merchant.
Split payment creates a channel that involves customers, merchants or marketplace, and vendors or sellers. But the payment becomes split payment only when the merchant has to make payment to the different vendors for the goods they provided.
What is Split Payment Gateway?
Now that the concept of split payment is understood, it is time to look at a split payment gateway. It is evident that split payment can be a cumbersome task if there is no systematic or automated way to send regular payments to different vendors. You will have to maintain a separate account for each vendor, manually split the payment, and keep track of it each and every month. Fortunately, there is a solution to this in the name of a split payment gateway.
It is nothing but a payment gateway that does the task of splitting the amount on your behalf and sends them to the vendors. With the e-commerce sector growing rapidly, making online payments has become almost indispensable if one wants to keep up with the market rate. A split payment gateway does exactly that.
How does Split Payment Gateway work?
The working mechanism of a split payment gateway is quite simple. It follows three major steps. They are as follows:
1. Payments Received are Divided
As soon as you receive payments from a customer through a payment gateway, the split feature automatically divides the payment. At first, you will have to enter the details for which part of the share will go to the vendors. Once this is specified, the payment gateway will split the amount in each transaction. The process is automated, so you will not have to do this every time manually. Every time you receive a payment, it will do the same task of dividing it into the specified parts for the vendors. Once this is done, the split amount will proceed to the next task.
2. Auto Crediting
Once the payment gateway successfully splits the payment amount from the customer, it prepares for crediting it to the vendors’ account. But first of all, you will be required to select the settlement cycle, which refers to the period at which the payment will be credited to the vendors’ account. Once that is done, the payment will be automatically made to their account. The process is automated, so once the payment has been specified, the amount will automatically be transferred to the vendors without you needing to manually do it every time.
3. Reporting and Refunds
With the split payment gateway, you will track the transactions throughout the different stages it goes through. Once the payment is made, it will automatically reflect in your record books. If there are any refunds to be made, the payment gateway also allows you access to do so. The vendor’s account will automatically be debited.
Therefore, the split payment gateway helps the marketplace to facilitate transactions smoothly. Furthermore, with the automated feature enabled, you will not have to worry about going through the same process each time the payment is made.