Marketplaces — buyer pays platform, platform splits to merchants, marketplace takes a fee — are a common AP2 use case. The settlement architecture (split-at-source vs split-after) shapes accounting, reconciliation, and refund complexity in long-lived ways.
Split-at-source via connected accounts
Stripe Connect, Adyen Marketplaces. Payment processor receives the charge, splits funds across multiple connected accounts in one operation. Each party gets their share to their bank account. Clean accounting; requires processor support; preferred for new builds.
Split-after — older pattern
Single capture to platform account; subsequent transfers to merchants. Higher reconciliation burden (every charge has 1-N follow-up transfers). Common in older marketplaces; risk of money trapped during refunds.
Settlement timing
Funds reach different parties at different times. Platform fee: immediate. Merchant payout: T+1 to T+7 depending on bank, jurisdiction, risk profile. Smaller merchants need clearer expectations and faster timelines — payout speed is a competitive lever.
Tax and 1099 obligations
US: marketplace facilitator laws make the platform responsible for collecting sales tax. 1099-K reporting threshold is $600 (low). EU: VAT MOSS for digital goods. Tax automation services (TaxJar, Avalara) for the math; legal/finance for the policy.
Refunds and disputes
Refund-to-source unsplits cleanly if processor supports it. Otherwise: manually reverse transfers, hope merchant hasn't already withdrawn. Build refund flow before scaling; refunds aren't optional once disputes appear.