Basic Concepts¶
Currency Accounts¶
With Currency Accounts, it is possible to create and manage currency holding accounts that give your merchants flexibility to make and receive foreign currency payments in selected currencies without converting the funds into base currency. For online businesses, multiple currency accounts enable to support billing in multiple currencies and consolidate transaction data made in the same currency for accounting and financial management purposes.
Contract Schemes¶
Contract Schemes create a set of rules comprising routing and FX-rate schemes for both incoming and outgoing transactions in supported currencies. Before you'll be able to create a Commerce Account, firstly, you need to create a contract scheme. This is due to requiring that every commerce account has linked to a certain Contract Scheme. Online businesses can create multiple Contract Schemes to be assigned to numerous Commerce Accounts to support different types of offerings or multiple storefronts. The ability to assign one Contract Scheme to any number of Commerce Accounts allows FinTechs and marketplaces to apply the same conditions to a certain group of merchants (i.g. toy retailers or ticketing) such as available payment methods, commissions, reserves, etc.
Payment and Payout Invoice¶
Three types of transactions occur in Corefy: invoice, request and payment or payout. A Payment or Payout is a low-level operation that initiates a financial transaction in the defined payment provider system using the specified payment method, it simply provides a connection with an external provider and the mapping of statuses. A Payment or Payout Request is an operation with rich functionality that initiates one or multiple payments or payouts depending on the conditions set in the routing and exchange rate schemes. A Payment Invoice or Payout Invoice is a high-level operation that initiates not only payment or payout request, correspondingly, but also Ledger account transactions. An invoice includes information about a currency, commission and exchange rate.
This new functionality allows online businesses to apply payment fee for all incoming and outgoing transactions separately for every Commerce Account. For example, Uber and Fiverr take a 20% fee rate, while Freelancer charges 10% per transaction. Transaction fees are usually the main revenue stream of payment processors.
Payments hierarchy¶
Three types of incoming transactions occur in Corefy:
Payment Invoice → Payment Request → Payment
- Payment is a low-level operation that initiates a financial transaction via the defined payment provider using the specified method. It simply provides communication with an external provider and the mapping of statuses.
- Payment Request is an operation with rich functionality that initiates one or multiple transactions depending on the conditions set in the routing and exchange rate schemes.
- Payment Invoice is a high-level operation that initiates following Payment Request and Ledger account transactions.
Payouts hierarchy¶
Three types of outgoing transactions occur in Corefy:
Payout Invoice → Payout Request → Payout
- Payout is a low-level operation that initiates a financial transaction via the defined payment provider using the specified payout method. It simply provides a connection with an external provider and the mapping of statuses. Payout refers to the financial return, or monetary disbursement of investment, or annuity.
- Payout Request is an operation with rich functionality that initiates one or multiple payouts depending on the conditions set in the routing and exchange rate schemes.
- Payout Invoice is a high-level operation that initiates following Payout Request and Ledger account transactions.
In contrast to Payment Invoice — Payout Invoice has Autoprocessing property. This type of commerce transactions can be processed both automatically and manually.