Rainforest supports allocating a single payin across the platform and multiple merchants with amount splits

This can utilized to apply a platform fee to a payin, which is commonly used to apply SaaS fees or services fees. This platform fee is in addition to the payment processing fees defined by the merchant billing profile.

This can also be utilized to route funds to one or more merchants, with full control over how each merchant's allocation is handled on refunds and ACH returns.

Multiple splits

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Amount splits support two split types, Platform and Merchant. Each merchant split routes a defined amount or rate-based allocation to the platform or specified merchant. The remaining amount after all splits are applied will be allocated to the originating merchant on the payin.

For example, a $100 payin on the originating Merchant A has a billing fee of 3% + $0.30, amount split of $5 to the platform, amount split of $4 to Merchant B, and amount split of $3 to Merchant C. The originating merchant, Merchant A, receives $84.70, which is the the net amount after the billing fee, platform split, and merchant splits were deducted.

Platform split

The Platform amount split is deposited to the platform on a monthly basis, on the first business day of the month, in a platform fee deposit.

Merchant splits

The Merchant amount split is deposited to the specified merchant in their funding deposit, which can be on a daily, weekly, or monthly schedule depending on that specific merchant's configuration.

Reversal configuration

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Reversal config on payins

Each amount split can specify a reversal config that enables the split to be recovered on a refund for the full amount or an ACH return. If the split is not enabled to recover from the split receiver, then the split receiver retains their allocation and the originating merchant absorbs the split amount of the refund.

When refunding via the Payment Report Component, the configuration defined on the Payin Config will be utilized for a full refund. For partial refunds, the originating merchant absorbs the full partial refund amount and all split receivers retain their allocations.

Reversal configuration is not supported for partial refunds or chargebacks.

Amount splits on refunds

Amount splits can also be defined directly on the refund to dynamically configure how the refund should be allocated and debited from each split receiver. This can be useful for partial refunds or if the amount splits differ from the original payin amount splits.

Defining the amount splits on the refund will override the reversal configuration defined on the originating payin.

For partial refunds, if no amount splits are defined on the refund request, then the originating merchant absorbs the full partial refund amount and all split receivers retain their allocations.

Deposits

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The amount split is deducted from the amount the merchant receives in the daily funding deposit, and deposited to the platform in a monthly deposit, on the first business day of the month, for platform fees.

For example, if a $100 payin has a $5 platform amount split, the merchant receives $5 less in the merchant funding deposit, and the platform receives $5 in the platform fees deposit. The platform's residuals, which will include the billing fees, are deposited at the beginning of the next month.

Net billing

If the merchant is on a net billing configuration, then the amount split is subtracted from the net amount, after merchant billing fees are applied, and deposited to the platform in a monthly deposit for platform fees.

Gross billing

If the merchant is on a gross billing configuration, then the amount split is subtracted from the gross amount and deposited to the platform in a monthly deposit for platform fees.

Reports

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Payment Detail Components

The Payment Detail Components, for all payment types, will provide a Payment Allocation section within Related info that details the amount split allocations between the originating merchant, the platform, and other merchants.

Deposit Report

The Deposit Details in the Deposit Report Component can be configured to display the amount splits. This allows your merchants to understand the net calculation of the payins when amount splits are applied. The column can be configured with a name that provides the context of the split, such as "Platform Fee" if a platform split was applied.