Financial System Architecture

Understanding how funds flow through your platform is a crucial step in managing revenue and maintaining trust between you, your customers, and your sellers. This guide explains how customer order funds are processed and facilitated by the platform.

Key Terms

• Operator:
  The platform owner (you). You facilitate all transactions, collect customer payments, configure seller remittance details and commission levels, and remit funds to sellers.

• Customer:
  The end buyer purchasing products from your platform. They deposit funds into the operator's bank account.

• Seller:
  The third-party providers listing products or services on your platform. They manage their own stock, pricing, and dispatching.

• Merchant of Record:
  As the operator, you are the Merchant of Record. This means:

  • You collect 100% of funds from customers.

  • You remit the correct amounts to sellers.

  • Sellers do not require their own payment gateway.

  • Multi-seller checkout is supported.

Below is a step by step guide to how cash will flow through the system.

Cash Flow: Step-by-Step

1. Customer Purchase

• Funds are collected through the operator’s payment gateway.

• Funds are deposited into the operator’s bank account.

• Deposit timing and rates depend on your selected payment gateway.

2. Seller Dispatch

• Sellers receive order notifications.

• They pick, pack, and ship items, then mark the order as dispatched in the Seller Portal.

• This process can be automated via MConnect integration.

3. Payment Release

• Operators release payments once they're satisfied the order is fulfilled.

• This step reduces liability from refunds or fraudulent activity.

• Remittance notifications are generated daily at midnight.

Notification Logic:

• If payment is released before the “remit after date” → seller is notified at midnight.

• If payment is released after that date → seller is notified at the end of the same day.

Automation Options:

• Automated payment approval can be toggled per seller:

  • From the Seller Profile UI

  • At the time of seller creation

  • In bulk via CSV upload

4. Payment Processing

Each night, Marketplacer processes remittance advice for all orders with:

• A dispatch date of today

• A released payment

Two reports are generated:

• To the Seller: A summary of orders being remitted

• To the Operator: A consolidated, itemized CSV file including:

  • Invoice numbers

  • Seller name and bank details

  • Total remittance amount

Integration Options:

• Xero: Automate remittance file processing into your accounting system.

• Hyperwallet: Automate fund transfers to sellers through your banking platform.

Simplified Financial Flow

1. Customer places order and pays the operator.

2. Operator holds funds until order is dispatched and payment is released.

3. Operator remits the seller, deducting platform commission.

4. Seller receives remittance notification and payment.

5. Operator retains their commission share of the order.

Additional Information

• Sellers can be integrated directly into supported POS and eCommerce systems via API.

• Operators can configure a remittance delay (X days after dispatch) before funds are released.

• For details on remittance calculation, refer here.

• Use Xero for streamlined financial processing of remittances.

• Automate payments to sellers with Hyperwallet.