Split payment means that a buyer payment on a marketplace is automatically split into several amounts – typically the seller’s share, the platform commission and any fees. For Swiss marketplaces, this model is particularly relevant because it allows the platform operator never to hold customer funds itself in its own account – and thus usually to 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 consider when setting them up.

1. What is a Split Payment?

Split payment refers to the automatic splitting of a single transaction between 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 parties involved according to predefined rules.

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

• Merchant 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 goods value.

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

The crucial point: The split takes place at the PSP, not in the marketplace operator’s account. The platform operator only sees its commission in its account – customer funds flow directly to the seller.

Example: CHF 100 basket with 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 in a pooled account of the marketplace.

2. Why split payments are regulatorily important for Swiss marketplaces

Unlike the EU with the Payment Services Directive (PSD2), Switzerland has no standalone payment services law. 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 key risk for marketplaces: Anyone who receives customer funds in their own company account and later forwards them to sellers may be deemed a financial intermediary within the meaning of Art. 2 para. 3 GwG. This gives rise to obligations such as affiliation with a self-regulatory organisation (SRO), compliance with due diligence and reporting obligations and, in extreme cases, the obligation to obtain a licence 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 do not replace an individual legal review. The decisive factor is the specific contractual and technical setup.

3. Multi-seller basket: 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 installation materials from seller C (CHF 30) on a Swiss trade 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 charged per seller and also split, or flow to the platform as a flat fee. The technical implementation is via so-called split rules, which define 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 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 deducts the corresponding amounts from the seller accounts and refunds the buyer the total amount.

Partial refund (one seller)

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

Key questions to clarify before launch:

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

• What happens in the event of a negative seller balance? If a seller has already been paid out and a refund then occurs, a negative balance arises.

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

Chargebacks

A chargeback occurs when a buyer reclaims the payment through their bank or card provider. For marketplaces, the liability issue is complex: formally, the chargeback goes to the Merchant of Record – usually the PSP or the platform.

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

5. Payout timing and payout logic

Split payments define how a payment is split. The payout to the seller is a separate process that can take place later in time.

A rolling reserve – a percentage share that is retained temporarily – can mitigate the risk of chargebacks and refunds. Typically this is 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 each transaction is clearly split from the outset. Nevertheless, there are points that need to be clarified with the fiduciary:

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

• Fee deduction: PSP transaction fees reduce the platform’s income and must be correctly recorded 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 correctly recorded for both the seller and the platform.

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

7. Checklist: what to check before launch

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

• Is it clearly defined who is 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 KYC onboarding for 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 baskets – including partial returns?

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

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

• Is a rolling reserve sensible to mitigate 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, automated KYC onboarding for merchants and payouts to sub-merchants from a single source. The platform supports TWINT, PostFinance, credit cards, QR-bills and other Swiss payment methods. Via 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 licence. As a regulated Swiss PSP, Payrexx handles the compliance obligations, so SMEs can focus on building their marketplace.