I read this interesting article:
In order to delay the payout to the provider, a platform needs to be able to hold the money for a while after the customer has made the payment. This process is generally referred to as escrow: “a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties”.
As mentioned above, holding money on behalf of people who are not your employees is heavily regulated, and a license for offering escrow is required in most countries. This license can be quite hard to get. Luckily, platforms can ignore this requirement by utilizing a payment service provider that offers escrow or an escrow-like functionality.
Out of the four companies discussed here, MANGOPAY is the strongest contender in this area. Thanks to their E-Money Issuer (EMI) Licence, they can offer an escrow solution in all countries they operate in, and there’s no strict limit to how long they can hold the money.
Stripe doesn’t have a similar license, which means they can’t officially call their product escrow. In practice, they can provide identical functionality, albeit with some time limits: they can offer all of their Connect product users a payout delay of a maximum of three months, and in some special cases, it can be extended to a maximum of six months. If you need to hold funds for a period longer than six months, Stripe’s solution is not ideal for you.
PayPal confirmed they’re able to hold funds for up to 30 days, and their representative did tell us that longer periods might be possible. They partly compensate for the lack of a longer escrow by offering buyer protection: if something goes wrong in the transaction, the buyer can file a claim and get their money back. However, the protection doesn’t apply to all transactions, so the security is not quite at the same level as compared to the protection offered by delayed payout.
Adyen doesn’t offer information on their ability to delay payouts on their website, and their representatives have not been able to comment on whether they offer this capability.
And I read this technical document:
Do you think that Mangopay can be integrated into the process managed by Sellacious?
Or improving your integration with Stripe connect?