A Guide to Marketplace Payments (How To Set Up Payment On Marketplace)

Marketplaces are third-party, market-branded platforms that connect consumers and sellers in a single place. Popular examples of platforms include Etsy and Amazon.

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While ecommerce websites accept payments directly from buyers, marketplaces process payments and receive a commission from each sale that the marketplace facilitates.

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The benefit of this for sellers and retailers is that they can reach a wider audience and enjoy some of the capabilities that come with selling on a marketplace.

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While a sole-business ecommerce website only houses one seller, marketplaces have dozens, hundreds, or thousands of vendors.

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If you’re interested in starting a marketplace or improving your existing platform, it’s critical to understand how to set up marketplace payments.

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Read on to learn more.

How can Marketplaces Accept Payments?

Online marketplaces usually accept various payment methods, including but not limited to the following:

Credit and Debit Card Payments

Credit and debit cards are popular online payment methods. To facilitate these transactions, online marketplaces often partner with payment service providers or payment gateways.

Digital Wallets

Digital wallets such as PayPal and Apple Pay are becoming more common as online payment options. Online marketplaces are usually able to integrate a variety of digital wallet options into their checkout workflows. When a customer chooses to pay with a digital wallet, they’ll be redirected to the app associated with the digital wallet.

ACH

Some marketplaces accept ACH payments. ACH payments are electronic payments that use the ACH network to transfer funds between bank accounts. These transactions are commonly used for various types of financial activities, including direct deposits, bill payments, business-to-business payments, and other electronic funds transfers.

How to Set Up Marketplace Payments

To set up marketplace payments, you’ll need to find a marketplace payment processor that you want to work with.

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The best payment processor for you will be able to streamline the checkout process for customers and make it easy to handle commissions and balance transfers. Once you’ve chosen a payment processor, you’ll need to integrate the solution with your tech stack to start accepting payments.

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If you need a robust, reliable marketplace payment processor, we’re here for you. Seamless Chex is a leading marketplace payment provider. Contact us today to learn more about our solution and how we can help you.