> ## Documentation Index
> Fetch the complete documentation index at: https://razorpay-60c89f9a-mintlify-audit-missing-sections-1778528421.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Control Flow of Funds

> As a platform with a multi-party business model, you can charge a fee for your platform or any third parties involved. Your sub-merchants may or may not have multiple third-parties involved for their processes. The money movement differs based on the number of parties involved. Control of Funds enables the sub-merchant to seamlessly disburse money, per order, with reports, avoiding the hassle and confusion with settlements. The examples explain the money movement in the presence and absence of a third-party.

### Example #1

Assume the following:

* *AcmeShop* is a marketplace for clothes. - **Razorpay Technology Partner**
* *Rani Wear* is one of the many sellers on *AcmeShop*. - **Sub-Merchant**
* *Deldel* is a delivery service. - **Third-party Service**
* *Gauri Kumari* is a buyer.

Scenario:

* *Gauri* buys a scarf from *AcmeShop*. She pays a sum of ₹ 1200 for her order.
* The payment is processed and accepted by *Rani Wear*'s Razorpay account and then the sum is divided and credited to the following:
  * *AcmeShop* Fee = ₹ 50
  * Delivery Fee for *Deldel* = ₹ 200
  * Razorpay Charges = ₹ 20
  * *Rani Wear* Bank Account = ₹ 930

Below image illustrates the money movement when a third-party is involved.

### Example #2

Assume the following:

* *AcmeBook* is an accounting platform that enables payment acceptance. - **Razorpay Technology Partner**
* *Mulchand Kirana* is one of the users on *AcmeBook*. - **Sub-Merchant**
* *Gauri Kumari* is a buyer.

Scenario:

* *Gauri* buys some kitchen groceries from *Mulchand Kirana*. She pays a sum of ₹ 1000 for her order.
* The payment is processed and accepted by *Mulchand Kirana*'s Razorpay account and then the sum is divided and credited to the following:
  * *AcmeBook* Fee = ₹ 50
  * Razorpay Charges = ₹ 20
  * *Mulchand Kirana* Bank Account = ₹ 930

Below image illustrates the money movement only with partner fee, when no third-party is involved.

<Warning>
  **Watch Out!**

  Razorpay deducts TDS for platform charges. Any GST implication for the sale of products/services has to be borne by the sellers and partners.
</Warning>

## Use Cases

Below are some of the most common use cases for control of funds with embedded payments.

### Education

AcmeVidya is an e-learning platform that offers certifications and diplomas to students and working professionals. It hosts a range of courses provided by different institutions and instructors.

* AcmeVidya becomes Razorpay's Technology partner.
* The instructors and institutes are added as sub-merchants.

Assume a student pays ₹ 6000 for a diploma course provided by an instructor, *Sarah Will*.
Sarah receives the amount on her Razorpay account. After transferring Razorpay's platform fee of ₹ 120 and any other third-party fee (maybe an exam center), of ₹ 1500, Razorpay settles the remaining amount of ₹ 4380 to Sarah's bank account.

### Hospitality & Travel

AcmeTrips is a air-tickets and hotel booking platform. It lists the best offers along with other amenities provided by hotels and airlines.

* AcmeTrips becomes Razorpay's Technology partner.
* The airlines and hotel groups are added as sub-merchants.
* Other vendors, like outsourcing cab service - are third-parties.

Assume you pay ₹ 4000 for a room for one night in Mumbai's Presidency hotel. You have opted for the hotel's  pick-up and drop services. The hotel receives the amount on their Razorpay account. After transferring Razorpay's platform fee of ₹ 80 and a charge of ₹ 1000 to an out-sourced cab company, Razorpay settles the remaining amount of ₹ 2920 to the hotel's bank account.

## Prerequisites

To support the money movement flow:

<Steps>
  <Step title="Get the `platforms_marketplaces` tag enabled on your Partner accoun...">
    Get the `platforms_marketplaces` tag enabled on your Partner account through your sales point of contact.
  </Step>

  <Step title="If you are charging a Platform fee, create a Linked Account for you...">
    If you are charging a Platform fee, create a Linked Account for your merchant account and add your bank account details.
  </Step>

  <Step title="Create a Linked Account for your third-party service providers, if...">
    Create a Linked Account for your third-party service providers, if any (for example, logistics partners). Add their bank account details.
  </Step>
</Steps>

## Collect Platform and Third-Party Fees

After creating Linked Accounts, you can create payments on your sub-merchant accounts with your platform fees.

To collect platform and third-party fees:

1. [Set up Platform and Third-Party Accounts](/partners/technology-partners/control-of-funds/set-up-accounts)
2. [Process Platform and Third-Party Fees](/partners/technology-partners/control-of-funds/process-fees)

You can also create [refunds and reversals](/partners/technology-partners/control-of-funds/refunds-and-reversals) for transactions.