Overview

PCE’s Split Payouts feature lets you define funding rules to distribute transaction proceeds automatically among various accounts—ideal for marketplaces, partners, or multi-entity settlements.

In this guide you’ll learn

• How to create and manage funding rules for multiple recipients
• The methods and boundaries supported for splitting payouts
• How reversals and recoupment flows work under funding rules

Prerequisites & Limitations

• Active merchant or partner account with Split Payouts enabled
• PCI DSS Level 1 compliance for all payout and split operations
• AML/KYC checks completed for all payout recipients
• GDPR adherence for any personal data in payout configurations

Compliance / Regulation Mandates

• PCI DSS Level 1: Ensure secure handling of card and account data across split payout workflows.
• AML & KYC: Perform risk-based due diligence and identity verification for each payout recipient.
• PSD2 Strong Customer Authentication: In EU, two-factor authentication is required for funds release in customer-initiated flows.
• GDPR Data Protection: Protect and minimize personal data in payout configurations, obtaining explicit consent where necessary.

Feature Table

Key Details

Key Features

• Intuitive Rule Creation: End users—whether customers, partners, or program managers—can easily define or clone funding rules directly from their portal dashboards.
• Override Hierarchies: Authoritative entities can lock rules to prevent changes, or allow subordinate levels to adjust cloned rules as needed.
• Tag-Based Splitting: Use transaction metadata tags (e.g., TIP, SURCHARGE, TRUST) to automatically direct portions of a payment to the appropriate accounts.

Use Cases in Scope

• Legal Trust Accounting: Automatically route incoming card payments into “Trust” and “Operational” ledgers by matching tags flagged as TRUST.
• Surcharge Allocation: Divide the surcharge component of a transaction into a separate account designated for fee recovery.
• Tip Distribution: Direct gratuity amounts to individual service provider accounts within PCE.

Customer Funding Rule Setup

1. In the customer portal, click your user initials in the bottom-left corner to open Funding Rules.
2. Select Add New to begin rule configuration:
   • Rule Condition: Choose whether the rule applies to all transactions or filter by specific tags (for example, TIP or SURCHARGE).
   • Rule Action: Assign recipient account tags and specify the percentage or fixed amount to split to each account.
3. Review the Linked Transactions list to verify which payments have been processed under this rule.

Program Manager Funding Rule Management

Program Managers can establish and oversee rules for their customers and associated partners:

• Navigate to the Funding Rules section of the PM portal.
• Click Add to create a new rule, with options to set override permissions and target recipient accounts.

Configurations

Portal Toggles

• PM Portal Toggle: Enable Show Funding Rule PM Portal to give program managers access to create and manage rules for their downstream partners and customers.
• Partner Portal Toggle: Enable Show Funding Rule Partner Portal to allow partners to configure rules for their linked customers.
• Customer Portal Toggle: Enable Show Funding Rule Customer Portal to let customers manage their own funding rules.

Recouping Funds

In the event of a reversal (chargeback, refund, or return) on a split transaction:

1. The system first attempts to debit the customer’s default account.
2. If additional funds need recoupment, it withdraws from the other split accounts according to the original funding rule.
3. If internal balances are insufficient, the system pulls the remaining amount from the customer’s external bank account.

Additional Remarks

• Access to create or edit funding rules is governed by role-based permissions—only authorized users will see the rule management features.
• When splitting CARD transactions, you can separate by TIP, SURCHARGE, or SUBTOTAL components; for ACH, Cash, Wire, and Check methods, splits apply only to the TOTAL AMOUNT.
• If you define a multi-method rule that includes CARD, but only configure the TOTAL AMOUNT component, that total will apply across all specified methods.