Marketplace Payments with Flexible Merchant Selection
Let marketplaces and AI agents authorize once, then allocate funds across any eligible merchant. You orchestrate settlement, enforce guarantees, and deliver a single, trusted customer experience.
Who Participates in a Card Marketplace PayNote?
A single authorization powers a coordinated settlement network—from buyer budgets to merchant payouts—all governed by your platform and processor.
Payer
Marketplace buyer (or AI agent)
Authorizes a budget once and can allocate it across multiple merchants or hold funds until a selection is made.
Payees
Multiple merchants (immediate or future)
Receive settlements individually as the marketplace directs splits or chooses a merchant post-authorization.
Guarantor
Card processor + marketplace platform
Coordinate enforcement of marketplace rules, eligibility, and conditional settlements to each merchant.
Currency
Fiat (USD, EUR, GBP, etc.)
Runs on the same card network authorization, capture, and refund flows you already operate.
Single Authorization, Infinite Merchant Flexibility
The marketplace or AI agent decides which merchants get paid and when—your processor simply enforces the original budget and conditions.
Single Authorization, Dynamic Routing
Authorize once, then split or re-route funds to any eligible merchant inside the PayNote—no repeated auth friction.
AI-Commerce Ready
AI agents negotiate, compare, and select merchants in real time while staying within the original budget.
Marketplace-Controlled Settlement
Platform validates delivery, coordinates evidence, and directs captures across multiple sellers under one umbrella.
How the Three Parties Interact
Two scenarios, one PayNote: split a cart across multiple merchants today or authorize a budget for AI selection tomorrow—the marketplace orchestrates it all.
Scenario 1 · Multi-Merchant Split
- Customer authorizes $500 covering items from three sellers.
- Marketplace routes $200 to Seller A, $150 to Seller B, $150 to Seller C—each with independent capture.
- Processor validates each settlement; customer sees one seamless charge with detailed breakdown.
Scenario 2 · Merchant Chosen Later
- Customer authorizes $500 without specifying a merchant.
- AI agent or marketplace logic selects Vendor B for $450; processor settles within the original authorization.
- Remaining $50 can be released or applied to a future purchase within the same PayNote.
Customer / AI Agent
- Authorizes a single budget that can power an entire shopping session.
- Selects merchants manually or via AI agent logic and confirms deliveries.
- Tracks spending, remaining budget, and merchant performance in one timeline.
Marketplace Platform
- Creates the PayNote, manages merchant eligibility, and coordinates evidence.
- Splits authorizations across sellers or directs funds to the chosen merchant later.
- Handles disputes with processor support, backed by shared PayNote records.
Merchants
- Fulfill orders, submit delivery confirmations, and receive settlement per their portion.
- Gain access to AI-driven customers without managing payment orchestration.
- Rely on marketplace and processor guarantees for timely payout.
Card Processor
- Authorizes marketplace budgets, then validates each downstream settlement.
- Guarantees that total captures stay within the original authorization.
- Applies existing fraud and compliance controls across marketplace activity.
The marketplace orchestrates everything: it encodes rules, coordinates delivery confirmations, and collaborates with the processor to settle each merchant confidently.
For card processors, this unlocks a new commerce model: authorize once, settle many times, and support agent-driven shopping without retooling core rails.
See How It Works
Watch how a single authorization can defer merchant selection until later in the flow.
See an AI shopper compare merchants, negotiate, and direct funds within a pre-approved budget.
Follow multi-merchant deliveries coordinated by the marketplace with processor-backed captures.
Example Use Cases
AI Shopping Agent Optimization
Authorize $1,000 once. AI agent compares specs, pricing, and seller ratings, then routes $850 to the optimal merchant—no re-auth needed.
Multi-Merchant Cart Checkout
Classic marketplace basket: one authorization splits across five sellers, each capturing only after confirming delivery.
AI Negotiation Agent
Customer authorizes $3,000 for a vintage watch; AI negotiates and routes $2,400 to the best merchant, releasing unused funds.
Comparison Shopping with Guarantee
Budget $500 for a gaming headset; AI evaluates warranty, reviews, and price before directing payment to the winning merchant.
Dynamic Fulfillment Selection
Marketplace picks the best fulfillment partner per order—fastest delivery or lowest cost—then splits the authorized budget accordingly.
Bundle Optimization
Authorize $200 for “dinner ingredients”; AI agent purchases from three vendors to maximize freshness, value, and delivery time.
Value Proposition
For Marketplaces
Enable AI Commerce
- Position your platform as the home for autonomous shopping agents.
- Capture early-mover advantage in agent-driven commerce.
- Attract tech-forward customers and merchants seeking automation.
Own the Payment Journey
- Keep checkout native to your platform—no merchant redirects.
- Control merchant eligibility, routing logic, and customer experience.
- Deepen loyalty by becoming the central trust layer.
Unlock New Revenue
- Charge for AI agent optimization services and premium routing.
- Collect commissions on negotiated or split settlements.
- Monetize aggregated agent shopping data insights.
For Merchants
Access AI Agent Demand
- List once and become discoverable to millions of AI shoppers.
- Win business based on price, quality, and availability—not marketing spend.
- Benefit from platform-level trust communicated to end buyers.
Guaranteed Payment
- Budgets are authorized before fulfillment begins.
- Processor and marketplace guarantee settlements when terms are met.
- Enjoy predictable cash flow even with complex routing.
No Extra Payment Ops
- Marketplace handles PCI, orchestration, and compliance.
- Focus on fulfillment and delivery confirmations only.
- Reduce customer service overhead for payment issues.
For Card Processors
Premium Transaction Service
- Introduce flexible settlement routing at a premium rate.
- Support higher ticket sizes from aggregated marketplace carts.
- Earn fees per downstream settlement or adjustment.
Future-Proof Positioning
- Brand as the processor built for AI commerce and dynamic marketplaces.
- Differentiate from traditional processors stuck with static flows.
- Build partnerships with platforms leading the agent economy.
Deeper Data Signals
- Analyze agent behavior and merchant comparisons for better fraud models.
- Gain visibility into marketplace demand trends.
- Use PayNote evidence to resolve disputes pre-chargeback.
For Customers
Safe AI Delegation
- Authorize a budget once; let AI shop confidently within guardrails.
- Review agent reasoning and merchant choices in a shared timeline.
- Retain ultimate approval through processor-guaranteed controls.
Better Deals Automatically
- Leverage AI to negotiate and compare across the entire marketplace.
- Receive optimal value without manual research or checkout friction.
- See unused authorization released or repurposed transparently.
Processor-Backed Trust
- Marketplace promises are enforced by the card processor.
- Delivery requirements and refund rights are guaranteed.
- Avoid trusting individual merchants you have never met.
Card Processor Operations & Risk Controls
What You See:
Marketplace PayNotes introduce flexible settlement routing atop standard card flows:
- Single authorization covering a customer budget (e.g., $500).
- Multiple settlement requests to different merchants or one deferred capture to a chosen seller.
- Release of unused authorization when the budget isn’t fully consumed.
You process the same auth/capture messages; PayNotes simply provide coordination, evidence, and budget tracking.
Validation Requirements:
- Confirm marketplace is authorized to route funds on behalf of the customer.
- Ensure each settlement merchant is eligible and amount remains within budget.
- Verify delivery or fulfillment confirmations provided by the marketplace.
- Track cumulative settlements so totals never exceed the original authorization.
AI Agent Risk Considerations:
- Monitor agent identity and behavior patterns for anomalies.
- Spot suspicious routing—e.g., agents repeatedly selecting the same high-risk merchant.
- Track velocity across agents to detect abuse of large authorizations.
- Collaborate with marketplaces to suspend compromised or malicious agents.
Your existing fraud systems remain in play, augmented by marketplace and agent telemetry.
Premium Service Pricing:
- Premium interchange for flexible settlement routing (0.5–1% uplift).
- Per-settlement fees when splitting budgets across merchants.
- Marketplace guarantee fees for coordinating AI-driven risk.
- Specialized pricing tiers for high-volume agent commerce.
What Changes Operationally:
You authorize budgets in advance, validate merchant eligibility at settlement, track spend against that budget, and release unused funds. The marketplace delivers evidence and routing instructions—the PayNote keeps every party aligned.
FAQ for Card Processor Decision Makers
How do we authorize without knowing the final merchant?
Authorize the marketplace as merchant of record. Settlements fan out to individual sellers later. This mirrors existing marketplace models, now with PayNote coordination.
What new fraud risks do AI agents introduce?
AI agents operate within timelines controlled by their owners—every action they take is signed and traceable. The PayNote explicitly specifies the agent's identity and allowed actions (budget limits, approved merchants, spending rules). This creates a clear audit trail. Real fraud risk comes from compromised owner accounts, not the agents themselves.
How should we price flexible settlement transactions?
Charge higher interchange and per-settlement fees similar to today’s marketplace pricing. Marketplaces pay for the flexibility to route payments post-authorization because it unlocks new revenue.
Do card network rules allow this?
Yes. Visa and Mastercard already support marketplace-of-record flows. PayNotes add structured coordination and evidence that improves compliance and dispute handling.
Are we locked into a vendor?
No. PayNotes are open protocol documents. Start with managed infrastructure, then migrate to self-hosted processing whenever you choose—the documents remain portable.
What is the implementation timeline?
If you already support marketplace models, expect 6–12 weeks to integrate PayNote coordination. You reuse existing auth/capture rails while adding orchestration logic.