Funding Sub-merchants

Document created by jordanbarhorst on May 10, 2016Last modified by gjsissons on Jun 1, 2016
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PayFacs who service large portfolios of merchants have a challenge: How do I make sure my customers reap the benefits of my service and get funded in a timely fashion?

 

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

 

Vantiv supports three strategies for PayFacs to fund their sub-merchants:

 

  • PayFac funded – where the PayFac funds their sponsored merchants outside of Vantiv'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 PayFac.

 

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 PayFac submitting instructions each time a payout is required.

 

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 PayFacs who have more complex or changing funding needs.

 

Dynamic Payout

 

  • PayFac calculates the fee they want to charge for rendering service(s) to sub-merchants. Hence, PayFac can use any formula or tiered billing structure.
  • PayFac can fund merchants on a fixed or irregular schedule, such as daily, weekly or monthly.
  • PayFacs 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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