Split Payment means that a buyer payment on a marketplace is automatically split into several amounts – typically into the seller's share, the platform's commission and any fees. For Swiss marketplaces, this model is particularly relevant because it allows the platform operator to never hold customer funds itself on a separate account – and thus generally avoid regulatory obligations under the Banking Act (BankG) and the Anti-Money Laundering Act (GwG).

This guide explains how Split Payments work technically, which payment flow models exist, how refunds and chargebacks work with split payments and what Swiss SMEs need to watch for when setting them up.

1. What is a Split Payment?

A Split Payment means the automatic split of a single transaction to several recipients at the time of payment. The buyer pays a total amount – in the background, the Payment Service Provider (PSP) distributes the money according to predefined rules to the parties involved.

In the context of a marketplace, these are usually three money flows:

• Merchant share: The amount due to the seller for their product or service.

• Platform commission: The fee that the marketplace operator retains as intermediary – typically a percentage of the goods value.

• Transaction fee: The PSP's costs for payment processing (e.g. credit card fees, TWINT fees).

The key point: The split happens at the PSP, not on the marketplace operator's account. The platform operator only sees its commission on its account – the customer funds flow directly to the seller.

Example: CHF 100 cart with 10 % platform fee

A customer buys a product on a Swiss marketplace for CHF 100 and pays with TWINT. The platform has agreed a commission of 10 %. The PSP charges a transaction fee of 1.3 %.

The buyer pays CHF 100. The marketplace operator receives CHF 10. The seller receives CHF 88.70. The money is never parked on a marketplace pooled account at any point.

2. Why Split Payments are regulatorily important for Swiss marketplaces

Unlike the EU with the Payment Services Directive (PSD2), Switzerland does not have a standalone payment services act. Regulation results from the interaction of the Banking Act (BankG), the Anti-Money Laundering Act (GwG) and the practice of the Swiss Financial Market Supervisory Authority (FINMA).

The central risk for marketplaces: Anyone who accepts customer funds into their own company account and later forwards them to sellers can be considered a financial intermediary within the meaning of Art. 2 para. 3 GwG. This creates obligations such as joining a self-regulatory organisation (SRO), complying with due diligence and reporting obligations and, in extreme cases, the obligation to obtain an authorisation under Art. 1 para. 2 BankG.

Split Payments avoid this problem because the marketplace operator never holds the customer funds itself. The PSP – which is itself regulated – handles the payment processing and forwards the funds directly to the respective recipients.

Pooled account vs. Split Payment: comparison

Important: Split Payments significantly reduce regulatory risk, but they do not replace an individual legal review. The decisive factor is the specific contractual and technical setup.

3. Multi-seller cart: one payment, several merchants

On many marketplaces, customers buy products from different sellers in a single order. A typical example: A customer orders wooden shelves from seller A (CHF 150), wall paint from seller B (CHF 45) and mounting material from seller C (CHF 30) at the same time on a Swiss trades marketplace.

The total amount is CHF 225. The customer pays once – the PSP splits the payment across three merchants, each less the platform commission.

Shipping costs can be calculated per merchant and also split, or flow to the platform as a flat fee. The technical implementation is done via so-called split rules, which define per transaction which amount goes to which recipient.

4. Refunds and partial refunds with Split Payments

Refunds are more complex for marketplace payments than in a classic online shop because several parties are involved. With Split Payments, it must be clearly defined who refunds which share – and who bears the costs.

Full refund

If the customer returns the entire order, the full amount is refunded. The split logic is reversed: The PSP debits the corresponding amounts from the merchant accounts and refunds the total amount to the buyer.

Partial refund (one merchant)

If the customer only returns the product from seller B, only the corresponding partial amount is refunded. The refund only affects seller B – the payouts to sellers A and C remain unchanged.

Key questions that must be clarified before launch:

• Who bears the payment fee for refunds? Some PSPs do not refund the transaction fee.

• What happens with a negative merchant balance? If a merchant has already been paid out and a refund then occurs, a negative balance arises.

• Who communicates with the buyer? The platform is usually the contact person.

Chargebacks

A chargeback occurs when a buyer reverses the payment via their bank or credit card provider. For marketplaces, the liability issue is complex: Formally, the chargeback goes to the Merchant of Record – this is usually the PSP or the platform.

In practice, the chargeback fee (typically CHF 20–25) is either borne by the merchant or split between the platform and the merchant, depending on the contractual agreement.

5. Payout timing and payout logic

Split Payments define how a payment is split. The payout to the merchant is a separate process that can take place at a later time.

A rolling reserve – a percentage share that is temporarily withheld – can mitigate the risk of chargebacks and refunds. Typical are 5–10 % of transaction volume over a period of 90–180 days.

6. Accounting and reconciliation

Split Payments significantly simplify accounting compared with the pooled account model because every transaction is clearly split from the start. Nevertheless, there are points that must be clarified with your fiduciary:

• Platform revenue vs. seller revenue: The platform books only its commission as revenue – not the total amount. This has direct effects on VAT.

• Fee deduction: PSP transaction fees reduce the platform's income and must be booked correctly as an expense.

• Payout files: The PSP provides settlement files (CSV, API) that enable reconciliation between incoming payments, commissions and payouts.

• Refunds and chargebacks: Reversals must be booked correctly both for the merchant and for the platform.

Recommendation: Clarify with your fiduciary before launch whether your marketplace acts as an intermediary (agency model) or as a seller (Merchant of Record). This determines how revenue, commissions and VAT are booked correctly.

7. Checklist: What you should check before launch

• Is your PSP able to process Split Payments with Swiss payment methods (TWINT, PostFinance, credit cards, QR invoice)?

• Is it clearly defined who is the Merchant of Record – the platform, the merchant or the PSP?

• Is there a rule for refunds and chargebacks: Who bears the costs, who communicates with the buyer?

• Are the payout cycles for merchants defined (frequency, minimum payout, currency)?

• Is the KYC onboarding of the merchants covered by the PSP so that you do not have to act as a financial intermediary yourself?

• Can the PSP correctly split multi-seller carts – even for partial returns?

• Are there settlement files or an API for reconciliation with the accounting?

• Have you clarified with your fiduciary how commissions, fees and payouts are booked?

• Is a rolling reserve sensible to mitigate the chargeback risk?

• Have you had the regulatory classification of your model legally reviewed?

8. Split Payments with Payrexx for Swiss marketplaces

Payrexx offers an integrated marketplace payment solution that covers Split Payments, automatic KYC onboarding for merchants and payouts to sub-merchants from a single source. The platform supports TWINT, PostFinance, credit cards, QR invoices and other Swiss payment methods. Through the Payrexx Platform API, marketplace operators can configure split rules, commissions and payout cycles individually – without having to hold customer funds themselves or apply for their own authorisation. As a regulated Swiss PSP, Payrexx takes over the compliance obligations, so that SMEs can focus on building their marketplace.