MultiVendorX provides flexible payout settings that can help marketplace owners manage refunds without creating complications for vendors or administrators.
There are two recommended approaches to handle refunds efficiently.
Option 1: Configure the Refund Validity Period and Clearance Period #
How does this method work? #
When configuring refunds in your marketplace, you can define the refund validity period—the number of days during which customers are allowed to request a refund.
To avoid payout-related issues, we recommend setting the Clearance Period in the MultiVendorX Payout Settings to match or exceed your refund validity period.
Example #
- Refund validity period: 14 days
- Clearance period: 14 days (or more)
In this setup:
- Customers can request refunds within 14 days.
- Vendor commissions remain in a pending state during the clearance period.
- Vendors can only request withdrawals after the refund window has expired.
- By the time commissions become available for withdrawal, the possibility of a refund has already passed.
What are the benefits of this approach? #
- Prevents refund-related payout disputes.
- Ensures vendors only withdraw finalized earnings.
- Requires no additional refund adjustments from the marketplace administrator.
- Provides a streamlined and automated workflow.
Option 2: Use the Minimum Wallet Reserve Balance #
How does this method work? #
MultiVendorX allows marketplace owners to configure a Minimum Wallet Reserve Balance within the Payout Settings.
This setting reserves a fixed amount in each vendor’s wallet that cannot be withdrawn.
Why is this useful? #
The reserved amount acts as a security buffer that can help cover future refund requests.
For example:
- Vendor wallet balance: $500
- Minimum reserve balance: $100
The vendor can only withdraw $400, while $100 remains locked in the wallet.
What happens if a refund is requested? #
If a customer requests a refund:
- The marketplace administrator can review and approve the refund request.
- The reserved balance can be used to adjust the vendor’s commission accordingly.
- The marketplace retains greater control over refund-related financial adjustments.
What are the benefits of this approach? #
- Provides a financial safety net for refunds.
- Reduces the risk of vendors withdrawing all available funds.
- Helps marketplace owners manage refund liabilities more effectively.
