Violet provides configurable transfer settings that determine how and when funds are distributed to merchants. These settings can be customized at both the app and merchant levels to align with operational preferences.

Transfer Methods

Automatic Transfer

How It Works:

  • Violet processes the transfer of funds to merchants automatically upon successful order submission, orchestrated through your Stripe platform account.
  • Transfers are initiated without requiring any manual action from the platform or merchant.
  • Violet ensures that merchants receive payouts directly to their connected bank accounts via Stripe Connect.

Application / Use Case:

  • Suitable for businesses that want to streamline merchant payouts and ensure timely fund distribution.
  • Ideal for businesses that want to minimize their own payment infrastructure overhead and rely on Violet for seamless payment orchestration.

AUTOMATIC Transfer settings require AUTOMATIC Capture settings. This is because funds cannot be transferred to merchants without capturing the payment from shoppers first.

Custom Transfer

How It Works:

  • Violet creates distribution records for merchants but does not automatically execute transfers.
  • Transfers are only executed when triggered by the Channel through Violet’s Transfers APIs or independent of Violet’s payment systems (i.e. direct bank transfer to merchants)
  • Merchants can see pending distributions in the Merchant Dashboard but receive funds only when the Channel initiates the transfer.

Application / Use Case:

  • Useful for businesses that require greater control over payout timing and conditions.
  • Suitable for platforms requiring cross-border transfers across regions restricted by Stripe.

External Transfer

How It Works:

  • The Channel (i.e., marketplace) fully manages merchant payouts.
  • Violet does not generate any distributions or process any fund transfers.
  • Your platform maintains complete control over the merchant payout lifecycle.

Application / Use Case:

  • Ideal for businesses that have their own payment infrastructure and prefer to handle payouts independent of Violet.
  • Perfect for platforms with existing payout systems that need to maintain specific workflows.
  • Suitable for marketplaces with unique regulatory requirements around merchant payments.

Choosing the Right Transfer Setting

When selecting a transfer method, consider the following:

Choose Automatic Transfer If You Need:

  • A seamless and hands-free merchant payout process.
  • Immediate fund distribution upon successful orders.
  • Minimal payout management overhead.
  • Violet to orchestrate payments on your behalf through your Stripe account.
  • Note: Requires AUTOMATIC Capture settings.

Choose Custom Transfer If You Need:

  • Control over when funds are distributed to merchants.
  • To implement custom conditions for payouts.
  • To manage cross-border payment restrictions.

Choose External Transfer If You Need:

  • Complete control over the merchant payout process.
  • The ability to use your existing payment infrastructure without any additional support from Violet.
  • No Violet involvement in merchant distributions.