Let's say that you run a mental health counseling service. It's a marketplace, and you have counselors who serve the patients. Let's say that you pay 70% of the fee paid by the patient to the counselor.
Traditionally, you will encounter two issues while running a marketplace like this. First, at the month's end, you need to calculate which counselor gets paid and how much. Secondly, when you pay the counselors, you incur the transaction fee.
neetoCal's Split Payment feature solves both of these problems. While setting up the Split Payment feature, you can mention that you would like 70% of the payment to go to the counselors' account. Now, neetoCal will automatically split the payment between you and your counselors whenever a booking is made by the client. Your counselor will get 70% of the money; the rest will come to you.
In this case, we imagined a mental health counseling service. The same scenario can play out if you manage a yoga studio, health and beauty clinic, a chiropractor service or any other marketplace. The folks who provide the actual service would be called Service Providers in this article. In the example above, counselors were the "service providers". Depending on your business, the service providers could be musicians, technicians, personal trainers, therapists, travel agents etc.
To ensure that split payment works, we must go through many steps. Let's go through all of them one by one.
Visit the Stripe Connect page.
Stripe will ask you to configure Connect if you have not configured it yet. Make sure you have completed the following section and have a green tick to the left of each section.
Completed your profile platform.
Added business details to activate your account.
Visit the Connect Settings page. Under
Appearancesection update the following details listed below and click on the
Save branding changesbutton.
Icon - Stripe's recommended size is 128 px by 128 px.
Logo - Stripe's recommended size is 1000 px by 200 px.
You can see the preview of the changes on the left side. These branding details will be shown in the Stripe onboarding flow to your organization members who are going to connect their Stripe accounts.
Visit the automatic payout page in Stripe. Under
Payout Scheduleswitch from
Savebutton. We do this to make enough funds available in your platform account to send the split payments to your organization members
Visit API keys.
+ Create secret key.
It will ask for
Key name. Enter
Split payment for neetoCal.
Copy the API key that is shown to you in the modal. This value will not be shown again. This will be the Secret key value to be used later.
Just above the newly created row there will be a row having name
Publishable key. Click on the value under the column
Token. This will be the publishable key value to be used later.
Visit account settings. At the top right corner, you will see a value that starts with
acct_. Note this value. This will be the Identifier value to be used later.
Now login to your neetoCal account.
Settingsfrom the left-hand sidebar.
Connectthe Stripe Split Payment card.
Enter the values for
Service providers are the people who will actually provide the service. Here are the steps you(Admin) need to take to set up the service providers.
You (the organization admin) should ask your organization members(the service providers) to connect their Stripe by following this doc. Then, their Stripe accounts can be used to receive their share of the payment.
You(the admin) should log into neetoCal account.
Click on the
meeting linkstab from the lefthand sidebar.
Create a new meeting link and fill out the necessary information.
Click on the
To add a new split configuration for a meeting member, click on the
Only the people who have connected their Stripe account and are the hosts of this meeting would be shown in the list.
There are two types of splits available:
1. Percentage: This type of split calculates the distribution based on a percentage of the total amount.
2. Fixed: With this option, you can allocate a fixed amount in the currency of your choice. This fixed amount will be deducted from each meeting payment.
Once you have configured split payments, click the
That's it! You are all set now. Now, anytime a client makes a payment, then the payment will be split between the admin and the service provider.
Let's take an example to understand how money moves in the case of split payment. Let's say that on Oct 6, the client makes a payment of $80. The client booked the meeting for Oct 9 at 4 PM.
The moment client makes the payment, the admin will see a stripe transaction of $80. So the admin gets the money in their Stripe account immediately after booking. The admin will retain this amount until the meeting ends on Oct 9 at 4 PM.
On Oct 9 at 4 PM the meeting ends. At that time neetoCal will make a request to Stripe to transfer the service provider's share of the amount from the admin account. Let's assume that in this case the service provider gets 80% of the total payment. So neetoCal will ask Stripe to transfer $64 from the Stripe account of Admin to the Stripe account of the Service provider.
When the client paid $80, the admin didn't get the full $80. The admin needs to pay the Stripe transaction fee. When neetoCal requests Stripe to transfer $64 from the admin account to the service provider account, then Stripe doesn't take any transaction fee since it's a transfer from one stripe account to another stripe account.
In the last example, we saw that when a client makes a booking, the admin account sees a Stripe transaction. However, it doesn't mean the admin can instantly use that money. Some days later, Stripe will transfer the money from the admin's Stripe account to the admin's bank account. This is called payout.
As per Stripe, the first payout can take a while. Please read this documentation from Stripe to know more about their payout schedules.
When a booking is canceled, then the client might or might not get refunded. That depends on the admin's refund policy.
neetoCal supports all countries that Stripe supports, excluding Indonesia. Here is the list of the countries that Stripe supports.
Stripe demands that whatever is the country of the admin account, the same country should be for the service provider's stripe account. It means if the admin's country is USA then the servicer provider's country cannot be Mexico or Canada.
However, there is more flexibility for the Single Euro Payments Area (SEPA) countries. For example, if the admin's country is Portugal, then the service provider's country can be Belgium since both countries come under SEPA.