Marketplaces, Split Payments & Payouts — Payments & Money APIs

Marketplaces (rides, food delivery, freelancing) take money from buyers and pay sellers minus a fee. Moving other people's money has regulatory implications (money transmission, KYC/AML), so use a PSP's platform product (Stripe Connect, Adyen for Platforms, PayPal for Marketplaces) where sellers are connected accounts with KYC done by the PSP. Choose a charge type (direct, destination, or separate charges and transfers), handle refunds and disputes across parties, and schedule payouts with reserves for risk.

Marketplace charge models (Stripe Connect terminology)

Charge model	Merchant of record	Fees/refunds	Use when
Direct charges	Seller (connected account)	Seller bears; platform takes application fee	Sellers own the customer relationship
Destination charges	Platform	Platform bears, transfers to one seller	One seller per order
Separate charges & transfers	Platform	Platform bears; flexible splits	Multiple sellers per order, delayed payouts

Python (destination charge)

intent = stripe.PaymentIntent.create(
    amount=5000, currency="usd",
    application_fee_amount=750,                                  # platform's cut
    transfer_data={"destination": seller.connected_account_id},
    metadata={"order_id": order.id},
    idempotency_key=f"pay:{order.id}:{order.payment_attempt}",
)

Common pitfalls

Holding and paying out funds yourself without licensing.
No plan for who pays refunds/chargebacks.
Paying out before the dispute/refund risk window.

Key points

Use a platform product for KYC and money movement
Pick a charge model deliberately
Reserves and delayed payouts for risk

Further reading: Stripe Connect: Charge types

Practice questions

Why do marketplaces use PSP platform products like Stripe Connect?

Answer

Moving money on behalf of others requires KYC/AML and often licensing; the PSP onboards and verifies sellers and handles transfers and payouts.

Who bears the refund and chargeback costs in a destination-charge model?

Answer

The platform is the merchant of record, so it bears them initially and may recover from the seller per its agreement.