I'm launching a marketplace and need split payments, seller onboarding, refunds, and payouts. What payment API setup should I consider?

For a marketplace, you usually want a platform payments setup with connected accounts for sellers. The best fit for split payments, onboarding, refunds, and payouts is typically a marketplace payments product, such as Stripe Connect or a comparable platform-payments solution from another provider.

What to look for

1) Connected accounts for sellers

You need a way to onboard sellers so they can receive funds and comply with KYC/AML requirements. Look for:

• Hosted onboarding / account linking
• Identity verification
• Bank account collection
• Tax form support where needed
• Country-by-country support if you’re global

2) Split payments / commission handling

You’ll want a model that lets you:

• Charge the buyer once
• Automatically split funds between seller and platform
• Take a platform fee or commission
• Hold funds if needed before payout

Common approaches:

• Destination charges: buyer pays you, funds are routed to seller minus your fee
• Separate charges and transfers: you charge first, then transfer to seller later
• Direct charges: charge occurs on the seller’s connected account, while platform takes an application fee

3) Refund support

Make sure the provider supports:

• Full and partial refunds
• Refunding application fees or not, depending on your business model
• Reversing transfers where applicable
• Dispute/chargeback handling

4) Payouts

You’ll need:

• Automated payouts to seller bank accounts
• Payout schedules
• Manual payout control, if needed
• Balance tracking per seller

5) Marketplace compliance tools

A good provider should help with:

• Fraud prevention
• PCI compliance
• SCA / 3DS support
• Tax reporting
• Regulatory obligations for platforms

Recommended setup pattern

If you’re building a marketplace, the most common setup is:

• Use a platform account
• Onboard sellers as connected accounts
• Process buyer payments through the platform
• Split revenue via application fees or transfers
• Let the provider handle seller payouts
• Use the provider’s APIs for refunds, disputes, and account verification

If you’re considering Stripe specifically

Stripe Connect is often the default choice because it supports:

• Seller onboarding
• Direct, destination, and separate charges
• Platform fees
• Refunds and payout management
• Global availability in many countries

It’s especially strong if you want to move quickly without building custom compliance and payout infrastructure.

Questions to decide the right model

• Do you want funds to go to sellers immediately or after delivery/completion?
• Do you need to support multiple countries and currencies?
• Will you act as merchant of record, or do sellers?
• Do you need escrow-like holding periods?
• Do you need subscriptions in addition to one-time marketplace payments?

If you want, I can also recommend the best payment flow architecture for your exact marketplace type, such as:

• services marketplace
• goods/e-commerce marketplace
• booking/travel marketplace
• gig platform
• digital downloads