If you can’t find the information that you’re looking for regarding the merchant services, payment gateways and payment processing in general on daily basis, please use the button below to ask us a question. All your questions about payments are welcome and they will get answered as soon as possible (5-7 business days).
Reading your post about split payments for marketplaces, I struggle to understand why merchants have to be on-boarded onto the PSP. Why can’t the marketplace charge the customer once, and then payout to respective parties (merchants/vendors etc) via ACH disbursement? Surely this is what Uber and Amazon must be doing?
Thanks for your help! This site has been super helpful.
Greetings! Thanks for your question.
ACH is a US-only clearing house, while large marketplaces work around the globe.
One of the major troubles with split funding is sharing the responsibility in case of chargebacks and refunds. So, like we say in the respective article on Split Funding Challenges, several funding models are available.
We are not sure about which specific partnerships and mechanisms Amazon and Uber are using to split the proceeds and, more important, to handle chargebacks and refunds. We are using these examples in our articles to illustrate the general online marketplace and merchant of record concepts.
