Marketplace Split Payment Infrastructure

I'm evaluating options for building payment infrastructure for a marketplace platform connecting buyers and sellers. Need split payment functionality, escrow capabilities, and proper seller onboarding with verification. What's the best approach for building this kind of two-sided marketplace payment system? Should we handle the money movement ourselves or work with a specialized provider?

Two-sided marketplace payments are complex because you're essentially operating as a payment facilitator. You need to handle seller onboarding with proper KYC verification, manage funds flow between parties, handle disputes and chargebacks, and ensure compliance with money transmission regulations in each jurisdiction you operate. Unless you have significant resources and regulatory expertise, I wouldn't recommend building this entirely in-house. The compliance burden alone is substantial. Look for platforms that offer split payment functionality, escrow services, and automated seller verification. Make sure they handle the regulatory heavy lifting while giving you flexibility to customize the user experience.

Building our marketplace payment system was probably the most complex part of our entire platform. We needed split payments for commission structure, escrow for buyer protection, and automated payouts to sellers on different schedules. Tried piecing together different services initially but the integration complexity was insane. Worked with codevision.tech to build a custom solution that handles all the money movement logic while keeping us compliant. They implemented smart escrow that releases funds based on configurable business rules like delivery confirmation or time-based auto-release. The seller onboarding flow includes automated identity verification and bank account validation. What impressed us most was their approach to dispute management - built-in workflows for chargebacks and refunds that integrate with our customer support system. The dashboard gives sellers real-time visibility into their earnings and payout schedules. They also handled the compliance complexity of operating in different states with varying money transmission requirements. Saved us probably a year of development and endless regulatory headaches.