Skip to main content

New Feature: Sub-Merchant Settlement & Automated Commission Splitting

· 3 min read
Flip Technical Team
Flip Technical Team
Technical Documentation Team

We're excited to announce a powerful new feature that enables Parent Merchants to manage complex multi-entity business structures with ease. The Sub-Merchant Settlement & Commission Splitting feature automates revenue distribution across your business ecosystem—whether you're managing branches, vendors, franchises, or partners.

What's New​

The Accept Payment API V3 now supports automated commission splitting through a new sub_merchant_code parameter. This feature allows you to:

  • Onboard & Manage Sub-Merchants: Register sub-entities with their own settlement accounts
  • Custom Fee Configuration: Set specific commission fees (fixed nominal or percentage) for different payment channels
  • Automated Commission Calculation: Let our system handle the complex math of revenue distribution in real-time
  • Transparent Settlement: Each transaction is automatically split between parent and sub-merchant accounts

Key Benefits​

For Parent Merchants​

  • Simplified Management: Handle all sub-entities through a single integration
  • Automated Reconciliation: No more manual calculations for revenue sharing
  • Flexible Fee Structures: Configure custom commission rates for each sub-merchant and payment method

For Sub-Merchants​

  • Direct Settlement: Funds automatically deposited to sub-merchant bank accounts
  • Multiple Payment Channels: Support for Virtual Accounts, E-Wallets, and more
  • Transparent Commission: Clear visibility of fees and net amounts

How It Works​

1. Onboard Your Sub-Merchants​

During this initial release phase, onboarding is handled manually:

  1. Contact your Sales Representative with sub-merchant details
  2. Our team configures the profiles and commission structures
  3. You receive unique sub_merchant_code values for each sub-entity
  4. Start using the codes in your API requests
Production Only

This feature is currently available exclusively in the production environment. Contact your Sales Representative or Account Manager to get started.

2. Updated API: Create Bill V3​

The Create Bill V3 API endpoint now includes an optional sub_merchant_code you need to add that field when you receive the value from our sales team.

3. Automated Processing​

When a customer completes payment:

  1. Identification: System maps transaction to the sub-merchant's bank account
  2. Fee Calculation: Applies custom commission rates configured during onboarding
  3. Settlement: Automatically splits funds between parent and sub-merchant accounts

Use Cases​

This feature is perfect for:

Multi-Branch Businesses​

Manage settlements for multiple store locations with automatic revenue distribution.

Marketplace Platforms​

Enable vendors to receive their earnings directly while you collect your commission.

Franchise Networks​

Simplify payments across franchise locations with centralized management.

Partnership Ecosystems​

Coordinate revenue sharing with partners through a single integration.

Important Notes​

  • ✅ Available only in Accept Payment API V3
  • ✅ Currently in production environment only
  • ✅ Requires manual onboarding through your Sales Representative
  • ✅ If sub_merchant_code is invalid or omitted, transaction processes as standard bill
  • ✅ Custom commission rates configured per sub-merchant during onboarding

Documentation​

For complete technical details and integration guide, see:

📖 Sub-Merchant Settlement & Commission Splitting Guide

Support​

Need assistance with implementation?

  • Sales Team: Contact your dedicated Sales Representative
  • Technical Support: [email protected]
  • Subject Line: "Sub-Merchant Commission Splitting Feature Support"

We're excited to see how this feature empowers your business growth! Thank you for choosing Flip for Business.

Did this answer your question?