Transactions should be disbursed to your bank account and your sub-merchant’s funding source within 1-2 business days after the transaction has settled in the Braintree gateway (unless you hold the funds in escrow). Regardless of the number of transactions processed, both you and your sub-merchant will receive a maximum of 1 deposit per day.
You’ll see the following descriptor on your bank statement for your Braintree Marketplace disbursements:
BRAINTREE FUNDING [MERCHANT_ACCOUNT_ID]
If you have multiple merchant accounts and/or currencies with Braintree, you’ll be able to distinguish your Braintree Marketplace deposits using the MERCHANT_ACCOUNT_ID field.
You will need to collect a sub-merchant’s bank account information during the onboarding process in order to deposit funds directly into their bank account.
If your sub-merchant’s funding source is their bank account, they will see this descriptor for each disbursement on their bank statement:
[Master_Merchant_DBA] FUNDING [SUB-MERCHANT_FUNDING_DESCRIPTOR] [TRANSFER_ID]
The Master_Merchant_DBA field will appear as the DBA you provided during onboarding with Braintree. If you specify a descriptor when you pass the sub-merchant's funding parameters via the API, that value will appear in the sub-merchant funding descriptor field; otherwise, the gateway will generate a sub-merchant funding descriptor using the sub-merchant's applicant name, business legal name, or DBA name. The transfer ID is automatically generated for the disbursed funds and cannot be changed.
Alternatively, if you collected a sub-merchant's email address or mobile phone number instead of a bank account during onboarding, they will receive funds via Venmo. If their email address or phone number is associated with an existing Venmo account, we will automatically disburse funds to that account.
If we can't find a match, we will send them an email or text message the first time we disburse funds – approximately 1-2 days after their first transaction settles – requesting that they create a new Venmo account to accept the payment.
Venmo payouts cannot be identified by a traditional funding descriptor. Instead, sub-merchants receive funds in the form of a payment to their Venmo account, identified by the following message:
[Master merchant DBA] paid you.
The Venmo payout also includes an optional profile photo for your business and an automatically-assigned Payment ID (which can't be changed). The master merchant DBA field will appear as the DBA you provided during onboarding with Braintree. If you wish to change your DBA or if you would like to include a profile photo, contact our Support team.
The disbursement exception webhook will notify you if any disbursements to your sub-merchants fail. When it comes to this webhook, no news is good news. Banks and Venmo don’t send confirmation of successful disbursements, so you will only receive a webhook if there is a problem.
Each disbursement exception webhook includes one of the following codes:
- bank_rejected: The bank or account information provided was not correct
- insufficient_funds: There are not enough funds in the master merchant account to cover any fees, chargebacks, and/or refunds
- account_not_authorized: The bank or Venmo had a problem with the disbursement (e.g. account was closed or suspended)
These webhooks are the only way you will be notified of problems with disbursements to your sub-merchants, so it is vital that you integrate them into your Braintree Marketplace workflow.
Still have questions?
If you can’t find an answer, contact our Support team.