Split payment means that a buyer payment on a marketplace is automatically divided into several amounts – typically into 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 in its own account – and thus usually to avoid regulatory obligations under the Swiss 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 for split payments and what Swiss SMEs need to consider when setting them up.

1. What is a split payment?

A split payment means the automatic allocation of a single transaction to multiple 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 merchandise value.

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

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

Example: CHF 100 shopping 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 in a marketplace collection account at any point.

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 Swiss 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 receives customer funds into their own company account and later forwards them to sellers may be considered a financial intermediary within the meaning of Art. 2 para. 3 GwG. This gives rise to obligations such as joining a self-regulatory organisation (SRO), complying 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 payment processing and forwards the funds directly to the respective recipients.

Collection account vs. split payment: comparison

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

3. Multi-seller 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 materials 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 minus 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 uses so-called split rules, which define for each transaction which amount goes to which recipient.

4. Refunds and partial refunds for split payments

Refunds are more complex for marketplace payments than in a classic online shop because several parties are involved. For 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 merchant)

If the customer returns only 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 that must be clarified before launch:

• Who bears the payment fee in the event of 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 is created.

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

Chargebacks

A chargeback occurs when a buyer disputes the payment through their bank or credit 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 merchant or shared between the platform and the merchant, depending on the contractual agreement.

5. Payout timing and payout logic

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

A rolling reserve – a percentage held back temporarily – can cushion 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 collection account model because each transaction is clearly split from the outset. Nevertheless, there are points that need to be clarified with your trustee:

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

• Fee deduction: PSP transaction fees reduce the platform’s revenue 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 recorded correctly for both the merchant and the platform.

Recommendation: Clarify with your trustee 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 correctly recorded.

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-bill)?

• Is it clearly defined who the merchant of record is – 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 merchant KYC onboarding 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 – including partial returns?

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

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

• Is a rolling reserve sensible to cushion 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-bills 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 licence. As a regulated Swiss PSP, Payrexx handles compliance obligations, so SMEs can focus on building their marketplace.