Why you cannot pay Vendors “Directly”
There are limitations to being able to make a payment directly to a Vendor on the marketplace. The main limitation is that this can only be achieved in a SINGLE VENDOR CHECKOUT scenario, i.e. if the customer is restricted to paying out to one Vendor at a time (like Uber or Deliveroo etc).
Payments to multiple Vendors “Directly” in a single transaction cannot be supported as the Authorised and Captured value on the customer’s card or payment method cannot be then settled via multiple Merchant ID as it will not match the source payment amount.
Even using Stripe’s “Destination Charges” payment approach cannot work as only one Vendor can be included in the payment transaction at a time.
This is why Omnyfy uses “Separate Charges and Transfers” which permits the platform to capture the funds from the customer first, then break down the payments to the Vendors and disburse the funds after fulfilment has occurred.
Additionally using this workflow allows the marketplace owner to capture the funds first and then pay-out the Vendors once the order has been fulfilled.
Related Articles
Why you cannot pay Vendors “Directly”
There are limitations to being able to make a payment directly to a Vendor on the marketplace. The main limitation is that this can only be achieved in a SINGLE VENDOR CHECKOUT scenario, i.e. if the customer is restricted to paying out to one Vendor ...
The Omnyfy Stripe Marketplace Payments Integration
Omnyfy is integrated with Stripe via the “Separate Charges and Transfers” architecture which allows significant control over receipt and disbursement of funds to the vendors on your marketplace. The integration with Stripe offers a completely ...
Payments and Payouts through Stripe
There are three fundamental steps in the payments workflow which enables customers to buy from multiple vendors in a single transaction and allows you, the marketplace owner, to then disburse those funds to the Vendors and recognize your net proceeds ...
Creating and Verifying your Escrow account via checkout (For Customers Only)
Account Creation As a customer, you can create your own Escrow account during the checkout process on the marketplace. When selecting Escrow as the payment method (and you aren't signed in to Escrow already), you will be taken to the Escrow website ...
Creating and Verifying your Escrow Account from the Escrow Website
Creating an Escrow Account Signing up from the Escrow Website An Escrow account is needed in order to be able to manage, or transact with Escrow. This applies to customers, marketplace owners and vendors on the platform. There are 3 types of roles ...