Charging for collaboration package and separating payment to both businesses

We are doing a collaboration package on our website with a business we share a location with. is there a way to collect payment from customers online and/or on site that will divide the payment and deposit a set portion into each business?

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Yes, you can achieve this by using the Square Payments API which allows you to collect an application fee each time a seller accepts a payment with your application. An application fee is accrued in your Square account for each payment that Square processes through your application when using the Payments API.

However, please note that the application fee cannot be split among multiple Square accounts. The Square account that receives application fees in a payment or has application fees taken in a refund is your account, as the developer of the application. It’s the Square account that you sign in to when you’re accessing the Developer Dashboard. Application fees aren’t deposited in a seller’s Square account.

As application fee money accumulates in your Square account, you can transfer it to your linked bank account. You can set up an automatic daily balance transfer, which runs about 3 hours after the close of business hour that you set in your account. You can also use the Square Instant Transfer feature to get your current balance transferred immediately at a cost of 1.5% of the transfer amount.

Please note that your Square account and seller Square account need to be in the same country where application fees are collected. In addition, the seller location where the application fee is taken must use the same currency as your Square account in that country. For example, if your application is used in Canada and the United States, you must have a Square account in each country. Your Canadian sellers would have a Square account in Canada and take payments in the same currency as your Canadian Square account. Your US sellers would have a Square account in the United States and take payments in the same currency as your US Square account.

For more information about taking application fees, see Collect Application Fees.

This answer was reviewed by @Bryan-Square.

Also please note that the above functionality will only work for online payments. The ability to collect app_fee_money for in person payments isn’t currently available at this time. :slightly_smiling_face: