A split payment gateway is one of the advanced features of a payment gateway. It makes transactions much easier by splitting the payment you receive from customers and sends them on a timely basis to the vendors. The working mechanism of a split payment gateway is quite simple. First, you will have to specify the amount to be credit to each vendor, and when the settlement date arrives, the payment gateway will automatically debit and send the money to the vendors’ account.
There are several advantages of using this form of payment gateway. Some of them are as follows:
1. Saves Time
One of the biggest advantages of using a split payment gateway is that it saves a lot of time by cutting down the tedious task you have to do for dispensing money to vendors. Before this method, the merchants had to manually keep records of the payment to be made and send the bulk payment accordingly. The entire process would take up a lot of time and was not feasible from the commercial point of view. But with the arrival of numerous payment gateways, things have been eased down a lot for the merchants. Now, they do not have to go to the task of doing the same thing over and over again. The concept of splitting the payment for vendors has made the marketplace more effective and efficient for a business. By saving your valuable time here, you can use it productively in more important business departments.
With a split payment gateway, you don’t have to manually keep records of the payment to be made to each vendor
2. Less Prone to Errors
When things are done manually, they are likely to produce errors frequently. Sometimes these errors can affect the entire calculation, and you will have to do it all over again. Also, if mistakes and errors are done frequently, it can harm your reputation as a merchant. Hence, the best thing to do here is to rely on concepts where you do not have to go through this intricate process continuously. For example, in a split payment gateway system, all you have to do is enter the necessary details, including the numeric value you have to give to each vendor, and the rest will be taken care of by the payment gateway. Since the payment gateway is automate, it will skillfully compute the data and allot the prescribed numeric value to each vendor. Once the errors are reduce to being next to null, your account tally will be flawless, which will positively impact your business.
3. Different Payment Methods Integrated
A major benefit of using a split payment gateway is that it can bring different payment methods under the same umbrella. When you, as a merchant, receive payment from customers, they never come from a single source. Some might use a debit or credit card, while others use e-wallets or UPI payment methods. But your payment gateway integrates all these diverse payment methods under the same roof. The same is true for making split payments. By taking the help of a payment gateway, you do not have to enter each vendor’s account separately and pay accordingly. The payment gateway will accept their diverse methods of receiving the amount. Once they have given you their account details, no matter in which form it is, your split payment gateway will have no problem facilitating the transaction in their respective accounts.
4. Refunds and Adjustments
The amount you set for a vendor could likely be more or less than the actual amount he would want in the next settlement. In this situation, the split payment gateway also gives you access to revert the transaction or claim for a refund. It also stands when a customer claims a refund, and you have to debit the vendor’s account for the payment made. All you will have to do is enter the amount to be debit, and your payment gateway will take care of the rest. The amount specifiy will be debit, and customer satisfaction will not be compromise.
5. Payment PreAuthorisation
The split payment gateway also gives you the option of payment pre-authorisation. If a customer makes the payment for a product, then the payment gateway charges or TDR are apply. However, if the customer decides to go for a refund within the stipulate time. Then the payment gateway will refund the money to him. But you will have to bear the loss of the payment gateway charges even when the product is not sold.
The ideal thing to do here would be to go for a payment pre-authorisation. What happens in a payment pre-authorisation is that you can ask the payment gateway to keep. The amount received from the customer on hold. Then, once the refund claim period is over, you can release the payment. In the meanwhile, if the customer asks for a refund, no payment charges will be made. This way, you will pay the vendors as well without needing to bear an unprofitable expense.
With these benefits at hand, a split payment gateway can be an ideal tool for merchants who want to do business smoothly. The ease of transaction between the customer, you, and the vendors will be efficient with this payment gateway.