Understanding Split Payments
Before you get started with Split, here are some key concepts and terms you’ll need to know.
Key Terms
Connected Account
A connected account is any seller or vendor you transact with and added to Zoho Payments. Each connected account has their own account balance, payout settings, and bank account linked to receive payouts.
Transfer
A transfer is the movement of funds from your account to a connected account as part of a payment split. Each transfer is linked to the original payment it came from, and has its own Transfer ID for tracking and reconciliation.
Payout
A payout is the settlement of the balance to the registered bank accounts. Payouts are triggered by Zoho Payments automatically.
How Does Split Work?
Here is the complete payment flow when you use the Split feature in Zoho Payments:
- Collect payment: A customer completes a payment on your platform. The full payment amount is deposited into your Zoho Payments account.
- Define the split: You can split a payment across your connected accounts using the Session Creation API at the time of payment, using the Transfers API after a payment has been received, or directly from the Zoho Payments Dashboard.
- Transfer funds: Zoho Payments processes the split and creates individual transfers to each connected account. A platform fee is deducted from each transfer before the connected account is credited.
- Payout to connected account: Once a connected account has a settled balance, Zoho Payments automatically initiates a payout to their registered bank account based on the payout schedule you configure.
Scenario 1: Nagma runs a fashion marketplace with multiple clothing brands selling on her platform. Every time a customer places an order across multiple brands, she has to manually calculate each brand’s share and transfer funds individually.
With Split, Nagma adds each brand as a connected account, and her platform automatically splits and transfers each brand’s share the moment a payment comes in. For payments where the split wasn’t defined upfront, she can still assign the split later from the Payments module using the Payment ID. Each brand’s funds are then automatically paid out to their bank without manual intervention.
Scenario 2: Peter runs a home services platform connecting customers with plumbers, electricians, and other service providers. Every time a booking is completed and paid, Peter has to manually calculate each provider’s cut and transfer funds individually, leaving room for errors.
With Split, Peter’s platform automatically transfers each provider’s share to their connected account as soon as a payment is received. When a provider temporarily goes inactive, Peter simply disables transfers for that account in Account Preferences, ensuring no funds are routed to them until they’re back. Once the provider is available again, he re-enables transfers with a single toggle, keeping his platform running smoothly.
How to Get Started?
The Split feature requires an API integration to create transfers. Your development team will need to integrate with the Zoho Payments APIs to define how payments are split across connected accounts. Once the integration is in place, all transfers and payouts are visible and manageable from this module.
Insight: To enable Split for your business, contact support.
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