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General information about payments

Whenever an order is placed, the customer will be able to pay all in one transaction, regardless of how many vendor products have been added to the cart. This guarantees that the customer experience at checkout is as flawless and quick as possible.

The only payment flow available is then from customer to admin’s account, and as a second step from admin to vendor’s accounts.

Can customer payments go right to vendors’ accounts, without passing from the admin’s account?

No, this is not possible. All payments will be done in a two step process:

  1. customer to admin: the customer will send the payment to the admin’s connected payment account. Any payment gateway that is already enabled in WooCommerce will be available for payments from customers to admin.
  2. admin to vendors (vendors’ payouts): these payments can either be done offline or through one of the supported gateways (manually or automatically).

Let’s see how manual and automatic vendors’ payouts work.

Manual Payment

It’s up to the global shop admin to manage manual vendors’ payouts.
To do that, you can open the Commissions page, filter your vendor commissions by Unpaid status, and filter by vendor.

Filter by status and vendor

Then, you can select all of them and bulk edit the status from the bulk actions. You can use any of the enabled gateways (enabled from → Commissions > Gateways).

If no gateway has been enabled, you can pay them offline (for example by bank transfer) and then change the status to Paid.

Pay manually through bulk actions

If you want to pay each single commission individually, you can find the same options in the commission’s actions, by clicking on the 3-dot button on the right.

Commission actions

Automatic Payment

To enable a default payment on checkout and make sure that vendors’ commissions are paid immediately and automatically, go to Commissions > Commission settings and enable the option called Pay commissions to vendors during checkout.

Then, select the gateway.

Pay commissions at checkout

If no gateway is available, make sure you install the related plugin and enable it from Commissions > Gateways.

With any of the supported gateways, you will be able to issue payments to your vendors automatically and instantly during the checkout. The gateways are listed below:

  1. Stripe Connect
  2. PayPal Payouts
  3. Account Funds

Multi currency support

If your payment gateways support the multi currency option, this plugin will let you pay vendors’ commissions in every currency you have. Meaning that if you are running a multi currency store, commissions will be calculated and paid in the same currency they have been generated.

For example, if you are running a store in Euros and USD, your vendors will get commissions in Euros for orders placed and completed in Euros, and commissions in USD for orders placed and completed in USD.

YITH Account Funds

YITH Account Funds allows all users to have a virtual wallet on your site. They can make a deposit, so the deposited amount can be used as credit for purchases on the site.

The integration with YITH Account Funds allows you to issue vendors’ payouts into their digital wallet.

Additionally, if you also install YITH PayPal Payouts, your vendors can request a payment of their store credit into their PayPal account.

On this page, we’ll go through the following topics.

  1. Activate Account Funds gateway – and get vendors commission credited to a virtual wallet
  2. Extra options for vendors using YITH Account Funds – included redeeming funds with PayPal

1. Activate Account Funds gateway

To enable YITH Account Funds as a gateway and credit vendors’ commissions to their virtual wallet on your site, you just have to make sure that both plugins are installed and enabled from the Plugins page.

Then, enable the Account Funds payment method in YITH > Multi Vendor > Commissions > Gateways.

Activate Account funds

Now, if you want to pay commissions to vendors automatically during the checkout through YITH Account Funds, go back to the Commissions Settings section, and select it as default payment.

Pay commissions in checkout

This is the gateway that will be used by default for automatic payments of vendors commissions. Yet, you can also pay the commissions manually through Account Funds as explained here.

The vendor will be able to see a report of all payments in My Account > Income/Expenditure History.

For more details about the configuration of YITH Account Funds, please, refer to the full documentation here.

2. Extra options for vendors

Whenever you activate Multi Vendor and Account funds, you will be able to see a dedicated tab in the plugin settings YITH > Account Funds > Vendors & Funds. This tab includes two sections, the General settings and the Redeem funds one.

2.1 General settings

In the General settings, you can enable or disable the following options:

  • The vendor can charge funds: this option allows your vendors to deposit funds in their online wallet like any other customer.
  • The vendor can use funds: this option allows your vendors to use their funds to purchase products of your shop.
Funds settings

2.2 Redeem funds with PayPal Payouts

The second section, instead, allows you to configure how vendors can Redeem their collected funds.

Please, note that this specific option requires an additional plugin to be installed, so you’ll need all the three plugins below:

Why should I use this combination of plugins instead of using only YITH PayPal Payouts?

  • If you want to reduce the number of transactions via PayPal and any possible issues with them or with expensive fees.
  • If you want to incentivate your vendors to purchase from your store using their credit, so you both can save on transaction fees.

In this tab, you can set up the redeeming option either as a manual or an automatic process.

Redeem funds
  • Vendor can redeem: make sure you enable this option to let vendors redeem their available funds.
  • Minimum funds to redeem: set the minimum balance necessary for a vendor to redeem funds.
  • Maximum funds to redeem: set the maximum funds that can be redeemed in a transaction, leave empty to disable this restriction.
  • Gateway Method: set the gateway to use for transferring funds from the site to the vendor. At the moment only PayPal Payouts is available and it requires YITH PayPal Payouts For WooCommerce Premium 1.0.12 to use this feature. Please, note that you will pay a fee to transfer money from the site to PayPal.

Now you can choose whether to redeem them automatically or manually.

2.2.1 Automatic payment
  • Automatic Redeem Type: this option allows you to let vendors be paid automatically instead of submitting a payment request every time.
    • None: select this if you want to keep the automatic feature disabled. Make sure you select the manual redeem below to let your vendors submit a request at any time from My Account page (see below).
    • Automatically when the minimum threshold is reached: this way you can issue automatic payments as soon as the minimum amount set above is reached.
    • Automatically, on a specific day and when the minimum threshold is reached: this way you can issue automatic payments on the 1st of the month (or any other day you set) but only for vendors’ accounts that have reached the minimum amount set above. Vendors can however submit a payment request manually if the ‘Manual redeem’ option below is enabled.
      • Redeem Day: choose the day on which issuing the automatic payment, i.e. enter 1 to issue payments automatically on the first of every month.

All transactions will be visible to the vendor in My Account > Income/Expenditure History.

2.2.2 Manual redemption

Alternatively or in addition to the automatic payment, you can also let vendors redeem their available funds manually on request. Below in YITH > Account Funds > Vendors & Funds, these are the options that you have to configure:

  • Manual Redeem: enable this option if you want to allow also manual redemption and submit a request from My Account. By enabling this option, you will also be able to customize the button text and colour.
    • Redeem Button: customize the label of the button shown in My Account here.
    • Redeem Button Text Color
    • Redeem Button Color

If you enable this option, your vendors will be able to see a dedicated section in My Account > Redeem funds, from where they can submit a request and being paid immediately.

They can enter a custom amount (between the minimum and maximum allowed if you’ve set up these values in the settings) and as soon as they send the request the payment will be processed through the gateway that you’ve selected (only YITH PayPal Payouts available at the moment).

The payment will be will be recorded in the Income/Expenditure History.

transaction-history-my-account (1)

The transaction status will be available in My Account > Payouts and the admin can check the transaction in PayPal Payouts > Payouts List > Details.

Payout details

For more details about the configuration of YITH PayPal Payouts, please, refer to the full documentation here.

YITH PayPal Payouts

You can use YITH PayPal Payouts for WooCommerce to pay your vendors’ commissions automatically.

To start using it, make sure that both plugins are installed and activated.

Then, go to the plugin settings under YITH > Multi Vendor > Commissions > Gateways, where you can find all the available gateways for your vendors’ payouts, and enable YITH PayPal Payouts after configuring it on your shop as explained on this page.

PayPal Payouts

Now, if you want to pay vendors commissions automatically, go back to the Commissions Settings section, and select it as default payment gateway.

Commissions settings

This is the gateway that will be used by default for automatic payments of vendors commissions. Yet, you can also pay the commissions manually through PayPal Payouts as explained here.

Exclude vendors’ products from Payouts commissions

If you want to avoid that vendors’ products are included in the total calculation of your store’s receivers commissions, we suggest you enable the following option from YITH > PayPal Payouts > General settings > Multi Vendor Settings.

Multi vendor settings

Suppose you get an order with 2 products. Product A belongs to vendor A and costs €60, product B does not belong to any vendor and costs €40, so the total order is worth €100. In addition to this, you have set one receiver with a 50% commission.

If the option is disabled, your receiver will get €50.

If the option is enabled, product A is excluded, so the receiver will get €20, which is 50% of product B price only.

If you want to read more about PayPal Payouts configuration settings, please, refer to the official plugin documentation.


When a payout is made, PayPal sends a notification to both the sender and the receiver. You can customize the email subject and content from YITH PayPal Payouts > Notifications. To show the vendor commission and order IDs in the content of the email, you can use the placeholder ´{commission_ids} and {order_id}.

Vendor notification

YITH Stripe Connect

The integration with YITH Stripe Connect for WooCommerce allows the admin to split the price of one or more products between the vendor and the admin immediately after the checkout and based on the commission rate that you’ve agreed with them.

First of all, make sure you’ve installed and enabled YITH Stripe Connect for WooCommerce from Plugins menu.

Configure it as explained on the page Connect admin account from the official plugin documentation.

Then, go to YITH > Multi Vendor > Commissions > Gateways and enable YITH Stripe Connect to activate this service for your vendors.

Activate stripe connect

Make sure you set the redirect URI in your Stripe account. A warning message in the plugin settings panel will remind you about this and will show you the right address to add. It will look like this:

Stripe URI

Configure the URI from Stripe Connect dashboard.

The URI that you have to add to make Multi Vendor work correctly is not Stripe default URI, but an additional one. This means that if you remove the default one, the button Connect Stripe in My Account page will not work. Make sure, then, you do not remove it.

Redirect URI

Now, go back to the Commissions Settings section, and select Stripe Connect as the default payment gateway for vendors payouts during the checkout.

Select checkout gateway

This is the gateway that will be used by default for automatic payments of vendors commissions. Yet, you can also pay the commissions manually through Stripe Connect as explained here.

How do payments on checkout work?

Stripe provides a detailed description of what the whole process is about. You will find this explained in the plugin options panel in YITH > Multi Vendor > Commissions > Gateways and can refer to Stripe official page for further details.

Send Money to vendor on payment completed
When creating charges on your platform and separately creating a transfer, the platform can earn money by allocating less of the charge amount to the destination Stripe account, as in the above code example. Assuming that represents a delivery service transaction, with a charge to the customer of $100, a transfer of $20 to the delivery person, and a transfer of $70 to the restaurant:

  1. The charge amount less the Stripe fees is added to the platform account’s pending balance
  2. When the platform’s available balance is sufficient (at least $90), the transfers can be made, reducing the platform’s available balance by the specified amounts and increasing both connected account’s available balances by that same amount
  3. The platform retains an additional $6.80 ($100.00 – $70.00 – $20.00 – $3.20, assuming standard U.S. Stripe fees).
Stripe payment details

Fees for the payment of commissions are charged to the admin. Please, refer to this page to learn more about transaction fees.

Payments on the backend

If, for any reason, the payment of vendor commissions fails, or if there is no default payment gateway enabled, you’ll be able to use any of the supported payment methods to pay the vendor commissions manually from the Commissions list page.

Manual payment in bulk
Single commission payment

If you have unpaid commissions, this may depend on three main reasons:

  1. You haven’t enabled the Pay vendors commissions during checkout or have not selected any gateway in it.
  2. Your account balance was not sufficient to pay all commissions.
  3. Your vendors haven’t activated their Stripe account yet.

Let’s see how to solve the latter issue below.

If a vendor has not activated Stripe yet

Because of Stripe policy, every vendor has to explicitly authorize Stripe to be credited any payment to his/her account.

Note: this action can only be performed by the vendor and there is no way for the admin to do this on his/her behalf.

Make sure your vendor visits his/her dashboard and goes to Your shop > Payment info. Here they can find the Connect with Stripe button and click on it.

Vendor activate Stripe account

They will be taken to Stripe site. If they already have an account, they can simply log in. If they do not have any yet, they will be asked to create a new one:


Vendors will be able to see the very same button in their reserved area, My Account > Stripe Connect.

Stripe button in My account

…and will be able to also see and export a list with all transactions related to his/her own commissions.

Stripe button in my account with vendor commissions

After the vendor has authorized Stripe account to receive money, you can go on and pay the commissions manually from the Commissions page as explained here.

Please, refer to Stripe official page for any details about the payments and transaction fees.

Commission reports

If you want to, you can also Add vendors’ commissions to Stripe Connect Commission Reports. You can enable the dedicated option from the gateway details in Commissions > Gateway as you can see below.

Add vendors commissions to Stripe reports

All commission vendors payouts made through Stripe Connect will appear in your Stripe Connect Report that you can also find in YITH > Stripe Connect > Commissions (for more details please refer to this page).

paid commissions