You will need to onboard your Braintree Marketplace sub-merchants via the Braintree API; the Control Panel does not offer this capability. Braintree will verify the sub-merchant data and confirm the sub-merchant’s 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 plan to 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 choose to collect an email address or mobile phone number instead, funds will be disbursed via Venmo.
- First Name
- Last Name
- Email: If you plan to disburse sub-merchant funds to Venmo via 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 plan to disburse sub-merchant funds to Venmo via phone number.
- SSN or Tax ID: You can collect the full number, last 4 digits, or nothing at all. It is up to you whether you want to collect each sub-merchant’s full SSN (Social Security Number) or Tax ID during the onboarding process; sub-merchants can process up to 200 transactions or $20,000 in total transaction volume without providing this information. If you expect your sub-merchants to exceed these thresholds, however, we recommend collecting the full SSN or Tax ID upfront, as you'll need to distribute 1099-K tax forms to these sub-merchants come tax season.
- Routing Number: This is only required if you plan to disburse sub-merchant funds to a bank account.
- Account Number: This is only required if you plan to 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.
In order to accept payments, your sub-merchants will need to accept Braintree's 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.
Braintree will provide you with pre-generated 1099-K tax forms for all of your sub-merchants who met both of the following thresholds within the year:
- 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.