> ## Documentation Index
> Fetch the complete documentation index at: https://razorpay-881012b3.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Control Flow of Funds

> Collect platform and third-party fees from your customers and route them to third-parties.

<div style={{display:"flex",flexWrap:"wrap",alignItems:"center",gap:"0.35rem 0.9rem",border:"1px solid rgba(128,128,128,0.28)",borderRadius:"0.5rem",padding:"0.45rem 0.75rem",margin:"0 0 1.25rem",fontSize:"0.875rem"}}>
  <span style={{fontWeight:600}}>Available in</span>
  <span>🇮🇳 India</span>
</div>

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.

<AccordionGroup>
  <Accordion title="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
  </Accordion>
</AccordionGroup>

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

<img src="https://razorpay.com/docs/build/browser/assets/images/cof-partners-third-party-fees.jpg" alt="money movement flow with third-party" width="800" />

<AccordionGroup>
  <Accordion title="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
  </Accordion>
</AccordionGroup>

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

<img src="https://razorpay.com/docs/build/browser/assets/images/cof-partners-partner-fee.jpg" alt="money movement flow with partners" width="800" />

<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.

<AccordionGroup>
  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>
</AccordionGroup>

## Prerequisites

To support the money movement flow:

1. Get the `platforms_marketplaces` tag enabled on your Partner account through your sales point of contact.
2. If you are charging a Platform fee, create a Linked Account for your merchant account and add your bank account details.
3. Create a Linked Account for your third-party service providers, if any (for example, logistics partners). Add their bank account details.

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

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