SPLIT SETTLEMENT
Most platforms collect the customer payment in full, then this is on you to move the funds, and in some instances this may not even be compliant to do so. Tip4 can split the funds at the moment of authorisation be this:
- base bill to the merchant;
- service charges to the tronc
- platform fees
- Split by different sub merchants
- Split to providers, lenders etc.
One card transaction, multiple settlements, no reconciliation lag.
"Split funds at source — one transaction, multiple destinations."
WHAT IT IS
Traditional payments work in two stages: authorise the full amount, then redistribute later via internal accounting. Split settlement turns this on it’s head. The acquirer settles to the destination accounts directly, against the same single authorisation, with the splits defined per-transaction. All monies are held in FCA regulated bank accounts, and handled compliantly and in accordance with KYC and AML regulations.
Single authorisation
Customer sees one transaction on their statement. Not multiple splits and multiple names they don’t recognise.
Multiple destinations
Funds routed to the an FCA regulated account which Tip4 are in control of with your authorisation and clearly defined rules. We handle all of the internal transfers needed. You get what you are expecting, on the timelines you are used to.
Clean reconciliation
Clear audit trail of all transactions and pass throughs. Each destination receives a clean feed of its own transaction.
WHERE IT APPLIES
Tipping and surcharging is the obvious case. There are several others.
Split settlement was built for tipping (separating the tip from the venue's bill), but the same infrastructure handles other multi-party payment scenarios. If your business needs to take one customer payment and route it to several recipients, this is the architecture for it.
Tipping: tip → tronc, bill → venue, fee → platform fees (surcharging)
Service charge: service → venue or tronc per policy, bill → venue
Marketplace settlement: customer → multiple sellers in one transaction
Charity giving: donation portion → charity, transaction portion → merchant
Multi-party lending and platform fee distribution
Franchise royalties — bill at the franchisee, royalty share to franchisor
Split settlement flow diagram — one authorisation, four destination accounts
Pricing – Our pricing is Tiered to help support both SMEs and Enterprise clients alike. We offer a range of solutions, terminals and acquirers. All pricing is bespoke depending on your requirements, integrations, processors required, card turnover, ATVs and card blend.
We will review your requirements and can advise on the best approach to drive both savings and value in your solutions. Book a call