How do third party commissions work?

March 19, 2025

Discover how the Third Party Commissions modality works to divide the commissions when making a payment with a credit card

The Third Party Commissions modality allows the division and dispersal of a transaction in two different accounts with a single charge by using a predefined percentage, a fixed amount or a combination of both.

In this model, payments can be split between two types of merchants:

• 🔹 Main merchant: Responsible for selling the product or service.
• 🔹 Commission recipient merchant: Receives a commission for each completed transaction.

🔄 How Are Commissions Managed?

When a merchant needs to separate the commission from the total sale amount (due to regulations or convenience), they can implement Third-Party Commissions.

📌 Process:

1. The end customer makes a single payment using a debit or credit card.
2. Kushki automatically splits the transaction into two accounts based on the predefined configuration.
3. The main merchant receives the payment minus the commission.
4. The commission is directly transferred to the commission recipient’s account.

📄 How Do Charges Appear on the Customer’s Account Statement?

• 💳 The customer will see two separate charge details, each with its corresponding description.
• 📌 The transaction identifier on the statement may vary depending on the issuing bank, payment processor, or registered merchant name.

⚖️ Commission Split Options

The transaction amount can be divided in three ways:

• ✔️ Percentage: Between 0% and 100% of the transaction.
• ✔️ Fixed amount: Example: $2 USD per transaction.
• ✔️ Combined: Example: 10% + $1 USD per transaction.

Considerations

• Currently, Third-Party Commissions are available only for credit and debit card transactions in Ecuador 🇪🇨 and Mexico 🇲🇽.

• Once the Third-Party Commissions service is activated, all transactions for the merchant will be split according to the predefined conditions. It is not possible to select which transactions follow this flow and which will use the standard card payment flow.

• To activate or deactivate the Third-Party Commissions model, please submit a request through our support center.

• The commission breakdown is shown in the following products: