In order to create a new sub-merchant account, you'll need to first collect certain information about the applicant and their business. You'll then use this information to onboard the new sub-merchant via the Braintree API; the Control Panel does not offer this capability. We will verify the sub-merchant's information and confirm their status via a webhook. After that, you will be responsible for supporting your sub-merchants and ensuring that they deliver products or services that don’t break any laws.
The type of onboarding information you collect from your sub-merchants depends on how you use Braintree Marketplace. For example, if you collect your sub-merchant's bank account information, funds will be disbursed into their bank account. If you are an existing Braintree Marketplace user already funding via Venmo, and you collect an email address or mobile phone number instead, funds will be disbursed via Venmo.
- First Name
- Last Name
- DOB: Sub-merchant must be at least 13 years old
- Email: If you are currently disbursing sub-merchant funds to Venmo via an email address, the email address provided must match the sub-merchant's Venmo account.
- Business Name: This is only required if a Tax ID is provided instead of a SSN
- Mobile Phone: This is only required if you are disbursing sub-merchant funds to Venmo via phone number
- Routing Number: This is only required if you disburse sub-merchant funds to a bank account
- Account Number: This is only required if you disburse sub-merchant funds to a bank account; the account submitted must be a checking account (savings, deposit-only, and prepaid debit accounts will not be accepted)
- SSN or Tax ID: If you provided a business name, a full Tax ID is required; otherwise, you can collect the full SSN or last 4 digits
In order to accept payments, your sub-merchants must accept our merchant agreements. To facilitate this, you'll need to add a short passage of text to your website's existing Terms of Service, which will allow your sub-merchants to agree to both your terms and ours at the same time. You can find the required text and learn more in our developer docs.
We will generate 1099-K tax forms for your sub-merchants that meet specific processing thresholds. While these thresholds vary by state, most sub-merchants who meet both of the following limits within the year qualify for pre-generated 1099-K tax forms:
- Processed more than 200 transactions
- Processed at least $20,000 in total transaction volume (excluding service fees*)
*Example: A sub-merchant sells a $100 item and the service fee is $10. The transaction volume generated by this sale is $90.
Sub-merchants located in Vermont and Massachusetts only need to meet a transaction volume threshold in order to qualify for a pre-generated 1099-K. The total transaction volume thresholds in these states are as follows:
- Vermont – processed $600 or more in total transaction volume
- Massachusetts – processed more than $600 in total transaction volume