Split Payments for Swiss marketplaces: How automatic payment splitting works

Split payment means that a buyer's payment on a marketplace is automatically split into multiple 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 on their own 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, what payment flow models exist, how refunds and chargebacks work for split payments, and what Swiss SMEs need to consider when setting them up.

1. What is a split payment?

Split payment refers to the automatic splitting of a single transaction among multiple recipients at the time of payment. The buyer pays a total amount – in the background, the payment service provider (PSP) distributes the money to the participating parties according to predefined rules.

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

• Merchant share: The amount to which the seller is entitled for their product or service.

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

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

The crucial point: The split happens at the PSP, not on the account of the marketplace operator. The platform operator only sees their commission on their account – the customer funds flow directly to the seller.

Example: CHF 100 shopping cart with a 10% platform fee

A customer buys a product for CHF 100 on a Swiss marketplace 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. At no point is the money parked on a collective account of the marketplace.

2. Why split payments are regulatorily important for Swiss marketplaces

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

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

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

Collective account vs. split payment: Comparison

Important: Split payments significantly reduce regulatory risk, but do not replace an individual legal assessment. The specific contractual and technical design is decisive.

3. Multi-seller shopping cart: One payment, multiple 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 installation material from seller C (CHF 30) at the same time on a Swiss trade marketplace.

The total amount is CHF 225. The customer pays once – the PSP splits the payment among three merchants, in each case deducting the platform commission.

Shipping costs can be calculated per merchant and also split, or flow as a flat rate to the platform. The technical implementation is carried out via so-called split rules, which determine for each transaction which amount goes to which recipient.

4. Refunds and partial refunds with split payments

Refunds are more complex for marketplace payments than in traditional online shops because multiple 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 deducts 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 unaffected.

Central questions that need to be clarified before start-up:

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

• What happens if there is a negative merchant balance? If a merchant has already been paid and a refund is subsequently processed, a negative balance is created.

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

Chargebacks

A chargeback occurs when a buyer demands a refund 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 shared between the platform and the merchant, depending on the contractual agreement.

5. Payout dates 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 date.

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

6. Accounting and reconciliation

Split payments simplify accounting significantly compared to the collective account model because every transaction is clearly split from the start. Nevertheless, there are points that need to be clarified with the trustee:

• Platform turnover vs. seller turnover: The platform only models its commission as turnover – not the total amount. This has a direct impact on VAT.

• Deduction of fees: PSP transaction fees reduce platform revenue and must be correctly booked as expenses.

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

• Refunds and chargebacks: Chargebacks must be booked correctly both at the merchant and on the platform.

• Recommendation: Clarify with your trustee before starting whether your marketplace acts as an intermediary (agency model) or as a seller (merchant of record). This determines how turnover, commissions and VAT are correctly booked.

7. Checklist: What you should check before starting

• Is your PSP able to perform split payments with Swiss payment methods (TWINT, PostFinance, credit cards, QR-bill)?

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

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

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

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

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

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

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

8. Split payments with Payrexx for Swiss marketplaces

Payrexx offers an integrated marketplace payment solution that covers split payments, automated KYC onboarding for merchants and payouts to sub-merchants from a single source. The platform supports TWINT, PostFinance, credit cards, QR-bill and other Swiss payment methods.

Through the Payrexx Platform API, marketplace operators can individually configure split rules, commissions and payout cycles – without having to hold customer funds themselves or apply for their own licence. As a regulated Swiss PSP, Payrexx takes care of compliance obligations, leaving SMEs free to focus on building their marketplace.