Split Payments for Swiss marketplaces: How automatic payment splitting works

Split payment means that a buyer payment on a marketplace is automatically split into multiple amounts – typically into the seller's share, the platform's commission and any fees. This model is particularly relevant for Swiss marketplaces 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, which payment flow models exist, how refunds and chargebacks process with split payments and what Swiss SMEs need to consider when setting them up.

1. What is a split payment?

Under split payment is understood the automatic splitting of a single transaction to multiple recipients at the time of payment. The buyers pay a total amount – in the background, the Payment Service Provider (PSP) distributes the money according to predefined rules to the participating parties.

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

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

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

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

The crucial point: The splitting 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: EUR 100 shopping cart with 10% platform fee

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

The buyer pays EUR 100. The marketplace operator receives EUR 10. The seller receives EUR 88.70. The money is at no point parked in a collective account of the marketplace.

2. Why split payments are regulatory important for Swiss marketplaces

Switzerland – unlike the EU with the Payment Services Directive (PSD2) – has no independent payment services law. Regulation arises from the interplay of the Banking Act (BankG), Anti-Money Laundering Act (GwG) and the practice of the Swiss Financial Market Supervisory Authority (FINMA).

The central risk for marketplaces: Anyone accepting customer funds on their own company account and later forwarding them to sellers can be deemed a financial intermediary within the meaning of Art. 2 Para. 3 GwG. This creates obligations such as affiliation to a self-regulatory organisation (SRO), compliance with due diligence and reporting duties and in extreme cases the duty to obtain a licence according to 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 routes the funds directly to the respective recipient.

Collective account vs. split payment: Comparison

Important: Split payments considerably reduce the regulatory risk, but do not replace an individual legal assessment. Decisive is the concrete contractual and technical design.

3. Multi-seller shopping cart: One payment, multiple Comerciantes

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

The total amount is EUR 225. The customer pays once – the PSP splits the payment to three Comerciantes, in each case minus the platform commission.

Shipping costs can be calculated per seller and split as well, or flow to the platform as flat fee. Technical implementation takes place via so-called split rules, which determine per transaction which amount goes to which recipient.

4. Refunds and partial refunds with split payments

Refunds are more complex in marketplace payments than in digital commerce, 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 buyer the total amount.

Partial refund (one Comerciante)

If the customer only returns the product of 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:

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

• What happens in case of a negative merchant balance? If a Comerciante has already been paid out and a refund follows afterwards, a negative balance arises.

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

Chargebacks

A chargeback occurs when a buyer requests the payment back via their bank or credit card provider. In marketplaces, the question of liability is complex: The chargeback formally goes to the Comerciante of Record – this is usually the PSP or the platform.

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

5. Payout times and payout logic

Split payments define how a payment is split. The payout to the Comerciante (payout) is a separate process that can take place at a later time.

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

6. Accounting and reconciliation

Split payments considerably simplify accounting compared to the collective account model, because each transaction is clearly split from the beginning. Nevertheless, there are points that need to be clarified with the fiduciary:

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

• Fee deduction: Transaction fees of the PSP reduce platform revenue and must be correctly recorded as expenses.

• Payout files: The PSP delivers settlement files (CSV, API) that allow matching between payment entries, commissions and payouts.

• Refunds and chargebacks: Return bookings must be correctly booked both for the Comerciante and the platform.

• Recommendation: Clarify with your fiduciary before the start whether your marketplace acts as intermediary (agency model) or as Comerciante (Comerciante of Record). This determines how revenue, commissions and VAT are correctly booked.

7. Checklist: What you should check before starting

• Is your PSP capable of conducting split payments with Swiss payment methods (TWINT, PostFinance, credit cards, QR-bill)?

• Is it clearly defined who is Comerciante of Record – the platform, the Comerciante 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 Comerciantes defined (frequency, minimum payout, currency)?

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

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

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

• Have you clarified with your fiduciary 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 Comerciantes and payouts to sub-Comerciantes from a single source. The platform supports TWINT, PostFinance, credit cards, QR-bill and other Swiss payment methods.

Via the Payrexx Platform API, marketplace operators can configure split rules, commissions and payout cycles individually – without holding customer funds themselves or having to apply for an own licence. Payrexx, as a regulated Swiss PSP, takes care of compliance obligations, so that SMEs can focus on building their marketplace.