Commission Models on Paystack Splits

The standard model for most marketplaces. Vendor gets a percentage share; your platform keeps the rest.

// Vendor gets 80%, platform keeps 20%
// Set percentage_charge = 80 on the subaccount when creating it

app.post('/api/checkout', async (req, res) => {
  var { vendorSubaccountCode, amount, email } = req.body;
  var response = await fetch('https://api.paystack.co/transaction/initialize', {
    method: 'POST',
    headers: { Authorization: 'Bearer ' + process.env.PAYSTACK_SECRET_KEY, 'Content-Type': 'application/json' },
    body: JSON.stringify({
      email,
      amount: amount * 100,
      subaccount: vendorSubaccountCode,
      bearer: 'account', // Platform absorbs Paystack processing fee
      reference: 'order_' + Date.now(),
    }),
  });
  var data = await response.json();
  res.json({ authorization_url: data.data.authorization_url });
});

On NGN 10,000 with 20% commission: vendor gets NGN 8,000 — platform earns NGN 2,000 minus Paystack fee.

Best for delivery apps and bookings where a fixed platform fee makes more sense than a percentage.

var SERVICE_FEE_KOBO = 20000; // NGN 200

body: JSON.stringify({
  email,
  amount: amount * 100,
  subaccount: vendorSubaccountCode,
  transaction_charge: SERVICE_FEE_KOBO, // Your flat fee
  bearer: 'account',
  reference: 'order_' + Date.now(),
})

function getVendorShare(vendor) {
  var monthly = vendor.monthly_sales_ngn;
  if (monthly >= 5000000) return 92; // Top sellers: 8% commission
  if (monthly >= 1000000) return 88; // Mid-tier: 12% commission
  return 85;                          // New sellers: 15% commission
}

// Pass calculated share per transaction
body: JSON.stringify({
  email,
  amount: amount * 100,
  subaccount: vendor.subaccount_code,
  percentage_charge: getVendorShare(vendor), // Override subaccount default
  bearer: 'account',
  reference: 'order_' + Date.now(),
})

This guide is part of the Paystack split payments guide.

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