Funding Sub-merchants

Document created by jordanbarhorst on May 10, 2016Last modified by lsolheim on Nov 12, 2018
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Merchant Funding APIs

 

Payment Facilitators who service large portfolios of merchants have a challenge: making sure that merchants are funded in a timely fashion.

 

As explained in How is a PayFac integration different, developers will need to think about merchant funding in addition to coding their application for payment transactions.

 

Worldpay supports three strategies for Payment Facilitators to fund their sub-merchants:

 

  • Payment Facilitator funded – where the Payment Facilitator funds their sponsored merchants outside of Worldpay's system.
  • Managed Payout – Automatically directs the distribution of funds using pre-configured instructions.
  • Dynamic Payout – Controls the distribution of funds using flexible, customized instructions defined by the Payment Facilitator.

 

Our payout solutions provide a closed loop transaction lifecycle from payment to payout. Managed Payout is a self-contained service whereas Dynamic Payout is a solution platform. Dynamic Payout is dependent upon the Payment Facilitator submitting instructions each time a payout is required via the Dynamic Payout API.

 

An explanation of Dynamic Payout is provided in the short video below:

 

payfac_video_click_to_play.JPG

 

Examples of how developers can create XML based funding instructions for Dynamic Payout are included in Dynamic Payout examples.

 

Dynamic Payout is often used by Payment Facilitators who have more complex or changing funding needs.  Dynamic Payout is meant to be used with merchants boarded to Worldpay's eCommerce platform.

 

Dynamic Payout

 

  • Payment Facilitator calculates the fee they want to charge for rendering service(s) to sub-merchants. Hence, the Payment Facilitator can use any formula or tiered billing structure.
  • Payment Facilitator can fund merchants on a fixed or irregular schedule, such as daily, weekly or monthly.
  • Payment Facilitator may even choose to delay funding based on contractual or risk related issues.

 

The following transaction types are available to developers constructing the XML file containing funding instructions

 

  • Funding Instruction PayFac® Credit (FIPC) - used to move funds from the PayFac FBO Settlement account to the PayFac Operating account.
  • Funding Instruction PayFac Debit (FIPD) - used to move funds from the PayFac Operating account to the PayFac FBO Settlement account.
  • Funding Instruction Reserve Credit (FIRC) - used to move funds from the PayFac FBO Settlement account to the PayFac Reserve account.
  • Funding Instruction Reserve Debit (FIRD) - used to move funds from the PayFac Reserve account to the PayFac FBO Settlement account.
  • Funding Instruction Sub-merchant Credit (FISC) - used to move funds from the PayFac FBO Settlement account to the sub-merchant Operating account.
  • Funding Instruction Sub-merchant Debit (FISD) - used to move funds from the sub-merchant Operating account to the PayFac FBO Settlement account.
  • Funding Instruction Vendor Credit (FIVC) - used to move funds from the PayFac FBO Settlement account to the Vendor account.
  • Funding Instruction Vendor Debit (FIVD) - used to move funds from the Vendor account to the PayFac FBO Settlement account.
  • Funding Instruction Physical Check Credit (FICC) - used to move funds from the PayFac FBO  Settlement account to the Physical Check account.
  • Funding Instruction Physical Check Debit (FICD) - used to move funds from the Physical Check account to the PayFac FBO Settlement.

 

Details about how developers can use PayFac Dynamic Payout facilities are available to Vantiv O.N.E. members in Appendix D to the LitleXML reference guide.

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