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Home Support Extensions Marketplace How do people receive their money.

How do people receive their money.

  • Author
  • Bryn


    So my website allows people to post their own adverts and then others can buy from them, just like any other classifieds website. I would like to know exactly how the transaction takes place once a person has paid over the payment gateway.

    Does the money have to get stored in my account first before the seller receives their amount? Or does the money go straight from the buyer to the seller and at the same time some commission is taken from the transaction?

    ihor developer


    All payments are sent to the site owner’s account first (via WooCommerce payment methods), while the vendor balance on the site is increased. Then vendor can request a payout (with details required for receiving a payment), and the site owner can manually send the requested amount. Please check the screencast that shows how payouts are processed


    Thank you very much

    Is there no other way that the money can be transferred directly from the buyer to the seller without the site owner having to manually transfer the money themselves?


    Also how would the commission work if the money is going straight to the website owners account? When does the commission fee get claimed by the website owner in the transaction process?


    Sorry for all the questions.

    My last one is about the security of the payout method. The reason I am asking is because how does the seller know that the money will definitely get paid to them and not just sit in the website owners account?

    That’s why in my previous question I was asking about the money getting transferred straight from the buyers account into the sellers account without the website owner having to do anything.

    Thank you so much for your assistance with every query.

    ihor developer

    – There’s no option to split payment automatically at the moment, please consider using manual payouts because it’s possible to prevent fraud, e.g. if seller receives a payment immediately and disappears then you can’t provide a refund for purchase made via your site. With payouts you can keep a delay of at least 14 days to cover possible refunds.

    – The commission is basically the difference in the payment amount and the seller’s balance, for example if there’s a commission rate of 10%, and a payment of $100 to the site owner account, vendor will see $90 on their balance.

    – Like with any online transactions it’s a matter of trust, if the site looks solid and there’re any official details in Terms of Use or Privacy Policy (like company or site owner details, company address etc.) then there will be sellers willing to list their items.

    Please note that Maketplace extension is suitable for non-physical products only because there’re no front-end shipping options for sellers (like setting the shipping fee).


    Hello Ihor,
    Like Bryn, I too was also hoping for an automated payment solution between buyer and seller, as I thought Paypal’s buyer protection on goods and services would be sufficient to prevent fraud.

    I was wondering whether there have been any developments on this front?


    ihor developer

    I agree that splitting payments on checkout would be easier, but there are still a few issues (e.g. high transaction fees since there are separate small payments instead of a single payout). Previously there was a way to do this via PayPal Adaptive Payments but they deprecated it for some reason.

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