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UniPayGateway

August 25, 2016
Written by
James Davis
Written by James Davis
Senior Technical Writer at United Thinkers

Author of the Paylosophy blog, a veteran writer, and a stock analyst with extensive knowledge and experience in the financial services industry that allows me to cover the latest payment industry news, developments, and insights.

My works have been cited across media and payment blogs. I do my best to help businesses make the most efficient financial decisions that can positively and significantly improve their business growth.

Whether you are a seasoned investor or just starting out in the world of payments, my writing is designed to be accessible to everyone and help people navigate the complex world of payments. So if you want to stay up-to-date on the latest trends and insights in the payment industry, be sure to check out Paylosophy and my published works.

Reviewed by
Kathrine Pensatori
Product Specialist at United Thinkers

Product specialist with more than 10 years of experience in the Payment Processing Industry. I help payment facilitators and PSPs solve their various payment processing issues. On a regular basis, I work with a team of knowledgeable technical people in the space, and I am passionate about finding creative solutions to the challenges presented by the Payments Industry.

I would be happy to help with any questions you might have regarding credit card payment processing, merchant services, EMV certifications, the various ways of becoming a payment facilitator or a payment platform, as well as any other Payment Industry related issues you might be struggling with. Feel free to follow me on Quora, and don’t hesitate to send me links to the specific Quora questions you would like me to answer.

Split Funding Models for Online Marketplaces and Affiliate Marketing

After the emergence of online marketplaces and affiliate marketing the need for split funding mechanisms became extremely relevant. It became obvious that conventional model, under which the processor withheld a certain part of every transaction as payment processing fee could not accommodate more complex split payment scenarios.

As the new types of transaction participants emerged, new mechanisms had to be implemented in split funding platforms to allow each party to get the respective share of transaction amount.

Commonly used split funding models

Two commonly used split funding models are as follows. According to the first model, the splitting rules are defined for each single transaction separately by the submitter’s system. This model is suitable for cases when transaction details (such as the number of intermediary entities) change from one transaction to another. According to the second model, splitting rules are defined on the payment gateway’s end (in advance). This model is more suitable for cases when transaction details do not change from transaction to transaction.

More information on the role of split funding and implementation of split payment scenarios in merchant services industry can be found in the respective article on Paylosophy.

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