availability

If you're a new merchant looking for a marketplace solution, contact our Sales team.

Master merchant funding

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.

Sub-merchant funding

important

When using escrow, you are required to hold and release entire transactions, including any service fees. If you need to break up transactions into partial disbursements (e.g. 50% immediately and 50% upon delivery of a product), you will need to create two separate transactions.

To a bank account

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.

note

The account submitted must be a checking account. Savings, deposit-only, and prepaid debit accounts will not be accepted.

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 can't be changed.

To a Venmo account

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.

important

If a sub-merchant is prompted to create a Venmo account, they have 30 days to do so. If they do not take action, they will not receive their funds. We do not send disbursement exception webhooks in these cases, so manual follow-up will be required.

Venmo funding descriptor

Venmo payouts can't 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.

Disbursement exception webhook

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.


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