Braintree Marketplace

Onboarding Sub-merchantsanchor

availability

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

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.

Collecting sub-merchant dataanchor

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.

availability

Venmo funding destinations are no longer supported for new merchants. Contact us with questions or concerns.

Sub-merchant data parametersanchor

Required parametersanchor

  • First Name
  • Last Name
  • Address
  • 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.
  • SSN or Tax ID: If the sub-merchant is a registered business, a full Tax ID is required; otherwise, you must collect the full 9 digit SSN

Optional parametersanchor

  • 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)
note

Sub-merchants will need a 1099-K tax form if they process $600 in total transaction volume in a tax year. You must collect the full SSN (Social Security Number) or Tax ID up front, as you'll need to distribute 1099-K tax forms to these sub-merchants come tax season.

Merchant agreementanchor

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.

1099-Ksanchor

As of January 1, 2022, the Internal Revenue Service (IRS) will require 1099-K reporting when anyone receives payments totaling $600 USD or more for goods and services. We will generate 1099-K tax forms for your sub-merchants that meet the current processing threshold

*Example: A sub-merchant sells a $100 item and the service fee is $10. The transaction volume generated by this sale is $90.

note

While we file these forms with the IRS on our end, it is your responsibility to distribute them to your sub-merchants for their own tax purposes.