Split Settlements
This page gives the overview of split settlement and how it works
Introduction
With the rise of online payments, the demand for versatile payment solutions has grown significantly. In response to this demand, Decentro has built "Split Settlements." This functionality will enable businesses to manage settlements with multiple stakeholders in real time. A platform can specify the rules on how much each of their stakeholders must receive and the settlements will be processed to the stakeholders as per the rules defined.
How Split Settlement Works
A platform can mention the accounts to whom the funds are supposed to settle. By using Split Settlements, the platform can specify how much funds must be settled to which account. The split can be done by Amount or Percentage.
Addition of Settlement Accounts
The platform must provide the settlement account details of the Vendors/Stakeholders to whom the funds must be transferred. Decentro will configure the settlement accounts.
Configure Split Rules
After the settlement account details are added to Decentro's system, then the platform can specify the split rules that will be applicable for each settlement account.
The split rule against an account can either be Amount or Percentage.
- Split by Amount: This is a fixed value that needs to be passed which will be calculated from the settlement amount. (Ex. ₹200)
- Split by Percentage: This is a percentage value that will be calculated from the settlement amount (Ex. 80%)
Settlement
After the split rules are configured by the platform, Decentro will automatically perform settlements of the collected funds to the settlement accounts provided with the split rules configured.
For further details on the workings of the split, please refer here
Use Cases
E-commerce Platforms
E-commerce platforms whose involvement in payments depends on settling the collected funds to the vendors. Split settlements can automate that process and reduce the efforts of the e-commerce platform to perform reconciliation and then settle the funds on their effort.
E-commerce can specify what kind of a split rule must be set for each vendor and when the funds are collected, Decentro will calculate the settlement amount based on the split rules and settle the funds to each vendor.
Educational Institutes / Platforms
Educational institutions need to distribute fees among various entities within the institution, such as tuition fees, hostel fees, mess charges, transportation fees, etc. Split settlement can be utilized to allocate the collected funds based on the specified amounts or percentages that need to be settled for each entity.
Multiple Bank Accounts
Many businesses maintain separate accounts to allocate funds to different parts of their organization. Split settlements can be utilized to distribute these funds efficiently, reducing the reconciliation workload for the operations team.
Updated 11 days ago