{"id":10565,"date":"2022-07-11T16:06:16","date_gmt":"2022-07-11T10:36:16","guid":{"rendered":"https:\/\/blogrevamp.cashfree.com\/?p=10565"},"modified":"2023-04-21T17:00:57","modified_gmt":"2023-04-21T11:30:57","slug":"auto-collect-split-settlements","status":"publish","type":"post","link":"https:\/\/blogrevamp.cashfree.com\/auto-collect-split-settlements\/","title":{"rendered":"[What\u2019s New] Introducing Auto Collect – Split Settlements – Your Hassle-free Vendor Payments Splitting Experience"},"content":{"rendered":"\n

Businesses today are spending hours of manual time just figuring out whom to pay, how to pay and when to pay. Splitting settlements between stakeholders\/vendors is a whole new ballgame on its own. <\/p>\n\n\n\n

But why is splitting settlement necessary in the first place? Is there a way to simplify the process for vendors?<\/p>\n\n\n\n

What is Split Settlement and Why are Present Systems Outdated?<\/strong><\/h2>\n\n\n\n

The process of paying out funds to multiple stakeholders\/vendors according to a predefined commission set by a business owner is called a split settlement.<\/p>\n\n\n\n

After all, issues like these are not uncommon:<\/p>\n\n\n\n

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  1. Hassle in the reconciliation of vendor settlements<\/a><\/li>\n\n\n\n
  2. Occurrence of manual errors while splitting payments to multiple accounts according to varying commissions<\/li>\n\n\n\n
  3. Error\/Log in updating bank details of the stakeholder\/beneficiaries<\/li>\n\n\n\n
  4. Trying to map customer payments to the commissions given to vendors<\/li>\n<\/ol>\n\n\n\n

    \u2026 and many more <\/p>\n\n\n\n

    Month-ends usually end up wreaking havoc on the accounts team. If you are facing the same problems and are seeking a solution to end this, this blog is for you.<\/p>\n\n\n\n

    How Can Cashfree Payments\u2019 Auto Collect Solve Your Split Settlements Issues?? <\/strong><\/h2>\n\n\n\n

    Cashfree Payments\u2019 Auto Collect – Split Settlement is not just a payment splitting solution. <\/p>\n\n\n\n

    In fact, it’s your end-to-end payments splitting experience<\/strong>. It empowers businesses to manage payouts at a per-transaction level with the power of virtual accounts to multiple stakeholders.<\/p>\n\n\n\n

    Once payment is collected via Cashfree Payments\u2019 collection suite – Auto Collect<\/a>, it gets split based on the predefined split percentages either at the merchant level or the virtual account level<\/strong>. And the money is paid out to multiple vendors\/partners\/bank accounts at the pre-defined settlement times. <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    How Does Payment Splitting Work?<\/strong><\/h2>\n\n\n\n

    Let’s understand this with the help of an example:<\/p>\n\n\n\n

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    1. Consider yourself as a Merchant having multiple branches\/outlets<\/li>\n\n\n\n
    2. Let’s consider you have 3 branches in this case<\/li>\n\n\n\n
    3. To experience the functionality of split settlements, firstly you will have to onboard all your vendors\/stakeholders with whom you want to split every incoming payment to the Cashfree Payments’ Auto Collect ecosystem<\/li>\n\n\n\n
    4. Next up, generate unique virtual bank accounts for every branch and setup the vendor\/stakeholder split at the same time<\/li>\n\n\n\n
    5. Now there could be 3 cases in which the payments come in and get split:

      Case 1<\/strong>: Whenever one of your branch receives a payment on its’s virtual bank account (Virtual accounts are bank accounts that have no physical existence, and transact on behalf of a real, physical account acting as a layer – VPA 01 in this case ), the fund gets split automatically to the respective vendors (vendor 2 and vendor 3 which is the branch bank account and your bank account respectively in this case) based on predefined ratios as defined during virtual account creation.

      Case 2<\/strong>: Whenever you receive a payment directly, you might want to split it into the bank accounts of multiple departments within your organization (vendor 1 and vendor 2 in this case can be your inventory and accounts payables departments respectively).

      Case 3<\/strong>: If you want to settle all incoming funds directly to your bank account, you can do that too by not defining any split on your primary bank account level.<\/li>\n<\/ol>\n\n\n\n

      It’s that easy! <\/strong><\/p>\n\n\n\n

      This way you could spend time scaling your business to newer heights and leave the payment settlement operations to us.<\/p>\n\n\n\n

      How Can You Set up Auto Collect-Split Settlement on the System?<\/strong><\/h2>\n\n\n\n
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      1. Onboard your account on Auto Collect <\/li>\n\n\n\n
      2. Enable Split Capability<\/li>\n\n\n\n
      3. Add vendors <\/li>\n\n\n\n
      4. Configure vendor split<\/li>\n\n\n\n
      5. Settle across vendors <\/li>\n\n\n\n
      6. Reconcile<\/li>\n<\/ol>\n\n\n\n

        Onboard Your Account on Cashfree Auto Collect<\/strong><\/h3>\n\n\n\n

        For you to be able to settle a transaction to multiple vendors\/partners\/bank account, your account must first be onboarded onto Cashfree Payments\u2019 seamless collection suite – Auto Collect.<\/p>\n\n\n\n

        Once you are onboarded onto Cashfree\u2019s ecosystem you are ready to get started.<\/p>\n\n\n\n

        Enable Split Capability<\/strong><\/h3>\n\n\n\n

        Next up you will have to enable split capability for your account. <\/p>\n\n\n\n

        This can be done from the Admin dashboard. Under the merchant’s Auto Collect profile, please click on ‘Preferences’ on the Left-hand sidebar and turn the switch on for Split Settlements. <\/p>\n\n\n\n

        Our ops team will help you enable this.<\/p>\n\n\n\n

        Add Vendors\/ Partners\/ Bank Accounts<\/strong><\/h3>\n\n\n\n

        Adding vendors is super easy. You can do it yourself via merchant APIs or you can ask your account manager to add vendors using the Retool dashboard.<\/p>\n\n\n\n

        a. Merchant APIs – <\/strong><\/p>\n\n\n\n

        Vendors can be created via Merchant APIs.<\/p>\n\n\n\n

        b. Retool Dashboard for Account managers – <\/strong><\/p>\n\n\n\n