4 minutes Payment Partner Specifics
Overview
Payment partners integrated with SAPI may have visibility into merchant repayments and funding flows. This guide explains settlement processes, reconciliation, and financial reporting for payment partnerships.
Settlement Flows
Merchant Funding
Standard flow:
1. Merchant approved and accepts offer
2. SAPI transfers funds to merchant's business bank account (Direct)
3. Partner notified of funding (for commission calculation)
Partner not involved in funding transfer (SAPI to merchant directly).
Repayment Collections
Standard flow:
1. Merchant processes card sales through you (the payment partner)
2. You settle to merchant's bank account (as usual)
3. SAPI collects repayment percentage from merchant's bank via Direct Debit (separate from your settlement)
Partner not involved in collection (SAPI collects directly via GoCardless).
Future: Integrated Settlement (In Development)
Potential future model:
- Repayments deducted from your settlement to merchant
- You remit to SAPI
- Reduces friction for merchant (fewer transactions)
Status: Under development. Contact [email protected] if interested.
Reconciliation
What Partners Need to Track:
Referrals and commission:
- Which merchants were referred
- Funding dates and amounts
- Commission earned
- Commission received
Merchant performance (optional):
- Which funded merchants are active with you
- Their payment volumes (correlates to SAPI repayment speed)
- Any issues (chargebacks, account closures)
Monthly Reconciliation Process
Step 1: Receive SAPI's commission statement
Step 2: Reconcile with your records
- Match funded deals to your referral submissions
- Verify commission calculations
- Confirm payment received in your bank account
Step 3: Query discrepancies
- Email [email protected] with any missing or incorrect commission
- Include: Merchant name, funding date, expected vs. actual commission
Step 4: Record in your accounting system
- Commission as income
- Allocate to correct month/quarter
Financial Reporting
For Your Accounting
SAPI provides:
- Monthly commission statements (detailed)
- Annual summary (for year-end accounts)
- VAT invoices (if applicable)
You need:
- Accurate records of referrals and commission
- Proper revenue recognition (when commission is earned vs. received)
- Tax compliance (corporation tax, VAT if registered)
For Your Merchant Reporting (If Applicable)
If you provide merchant financing reports:
- SAPI can provide aggregate data on your referred merchant portfolio
- Performance metrics (funded vs. declined)
- Portfolio health indicators
Request custom reports: [email protected]
Notification of Merchant Changes
Inform SAPI if:
- Merchant closes their account with you (affects repayment monitoring)
- Merchant switches payment processors (affects SAPI's collections calculation)
- Suspected fraud or financial difficulty
- Merchant enters insolvency
Why: Helps SAPI manage risk and adjust collections if needed.
How: Email [email protected] with subject "Merchant Update - [Merchant Name]"
Frequently Asked Questions
Q: Do we need to track individual merchant repayments to SAPI?
A: No. SAPI handles all collections and servicing. You track your commission only.
Q: What if a funded merchant stops using our payment processing?
A: Notify SAPI immediately. The merchant may be switching processors (SAPI needs to reconnect) or reducing card sales (affects repayment).
Q: Can we see how much a merchant owes SAPI or their repayment history?
A: Not typically—that's confidential between SAPI and the merchant. However, for strategic partnerships with portfolio visibility, custom reporting may be available. Discuss with [email protected].
Q: If a merchant defaults on their SAPI advance, does that affect us?
A: No. You've already received your commission. SAPI bears all credit risk. Default doesn't affect your partnership or future commission.
Q: Can we receive commission via our PSP settlement instead of bank transfer?
A: Possibly. Discuss alternative payment methods with [email protected] during onboarding or renewal.
Need Help?
Reconciliation questions: [email protected]
Financial reporting: [email protected]
Merchant updates: [email protected]
Need Help?
Email: [email protected]
Phone: +44 20 3868 4990
Business Hours: Monday-Friday, 9am-5pm GMT