If you're the type of marketplace owner who prefers to have more control, this type of payment setup might be for you. With Stripe Payments, you, the marketplace owner, are responsible for all interactions with your sellers and disbursement of funds when your providers are ready to be paid.
Applying to Stripe Payments
To sign up for Stripe Payments, you'll need to create a Stripe Account: https://dashboard.stripe.com/register.
Click on "Activate your Account" once you're signed in and complete filling out your account details.
Stripe Payments Marketplace Flow
Upon signing up, all providers will be required to enter their bank account information in their Cashout tab located in their User Settings.
Once the provider saves their bank account info, it is sent directly to the marketplace owner's Stripe account. You'll see that a new customer was created in the Customers section on your Stripe account:
You'll need to click on the customer listing to view their details. Under "Bank accounts", you'll need to click "Verify". Stripe requires that you send two microdeposits $1 or less to the provider's bank account so that they can verify their bank account. Stripe will automatically send these deposits to the provider's bank account once you specify the amounts.
These deposits will take 1-2 business days to appear on the customer’s online statement. The statement description for these deposits will be AMNTS: and then the values of the two microdeposits that were sent. Your provider will need to relay the value of the two deposits to you. When accepting these values, be sure to note that there is a limit of 10 failed verification attempts. Once this limit has been crossed, the bank account will be unable to be verified. Careful messaging about what these microdeposits are and how they are used can help your providers avoid this issue.
This is a manual process between you, as the marketplace owner, and your providers. You will only need to complete this process once per provider. Stripe does this to verify that the bank account information is correct and tied to the vendor as to avoid fraudulent transactions.
This is where you enter the amount for the micro-deposit verification process.
Transactions & Paying Providers
When an item is sold or a booking is scheduled and completed, providers will be able to see a balance in their Transactions tab. Providers will request payment by clicking the "Cashout" button.
The marketplace owner will receive an auto email letting them know that one of their providers is ready to get paid. The auto email that the marketplace admin receives will include the following details:
Date of Birth:
Bank Account Number:
Bank Routing Number:
If the provider has not yet setup their banking info under their Cashout tab in their settings, they will receive an error when clicking the "Cashout" button prompting them to set it up.
The marketplace owner will be able to see all transactions from their Stripe Account under Balance > Transactions:
The items listed as Charge are purchases that were made on the marketplace. You can see the amount that was charged to the customer and the Stripe Fees (2.9% + .30) that were deducted. The Net amount is how much the marketplace will receive from the transaction.
The Available On date is when the funds will be processed and sent to the marketplace bank account. It normally takes 1-2 business days after the purchase has been made for the funds to be available.
The Payout is the total amount that is sent to the marketplace bank account on the Available On date. It is the sum of the charges (purchases) from that particular day.
Once the Payout has been sent to the marketplace bank account, it is up to the marketplace owner to decide the method of how they want to pay their providers. Some possible methods could be via check, cash, Venmo, PayPal, etc. This is where a bit of manual accounting will be involved for the marketplace owner since they will need to determine the amount due to each seller and deduct any marketplace commission percentages.
Although more of a manual process, it allows the marketplace owner more options for where, how and when to disperse their provider's funds.
If you have any questions regarding this process, please submit a ticket with your questions and a customer support team member will help you out.