Skip to main content

Financial Split Payments

Financial Split Payments (FSP) is a product that enables the collection of incoming payment flows originating from various gateways, generated either through alternative payment methods, cards, or account-to-account transactions, in order to credit them via a single payout flow to merchants and all other parties involved in the client business process (aggregators, intermediaries, platforms, etc.).

The dynamic approach of FSP defines the payout flow with the following features:

  • For each incoming payment flow, the merchant selects the allocation shares among stakeholders;
  • Net settlement to the merchant or other subjects;
  • FSP carries out the split processes asynchronously with respect to the requests and updates the merchant’s backend systems on the status of these processes via callback.

Here you can find a simple overview.

The FSP product can be used in two differents modes:

  • FSP standard: in combination with Fabrick’s transactional products, such asPSD2 Pay by Bank or Fabrick Orchestra with more alternative payment methods, that automatically notify FSP about the expected credit (Money In) to be validated.

  • FSP standalone: in standalone mode: in this case, it is the aggregator’s ownership to communicate the Money-In attributes and specify the allocation of related shares among the various clients.

Glossary

FSP Technical system behind the Financial Split Payments product.

Aggregator Legal entity that aggregates one or more clients.

Client Entity that receives its allocated share of credits from a specific Money In through a first-level split payment operation. A client may have multiple contracts in relation to different aggregators.

Money In Credit received in the aggregator’s account. Each Money In is typically split among the aggregator’s clients based on their respective shares.

Money Out The portion of funds allocated to a client. Money Outs are processed through the cashout flow. This concept corresponds to “Cash In” in the Financial Split Payments contract. Within FSP, it is the technical entity used to trigger fund distribution, or cashout, based on split rules, applied fees, and residual allocations.

Cash Out A second-level split payment in which each Money Out is allocated to one or more beneficiaries.

CashoutOrders Define how the amount of a single moneyOut is distributed through a cashout operation. Each Dynamic Cashout request includes one or more Cashout Orders, each specifying the rules for splitting the moneyOut.

Split Payment Rules A split rule is a part of a Cashout Order that defines a single cashout operation. It specifies the amount to be transferred to a specific beneficiary, effectively determining how the overall moneyOut is distributed.

Dynamic Cashout A process that defines one or more cashoutOrders, each specifying the split rules for distributing the amount of a moneyOut among one or more beneficiaries.

Net Residual The remaining amount after all cashouts have been defined and applicable fees deducted. This residual is assigned to a third party—typically the customer —specified in the cashoutOrders definition.