---
title: "Payment Processing Overview"
description: "An overview of payment processing in the Platform Model, covering the processing merchant concept, available payment actions, and links to the Seller and Platform Processing Models."
url: "https://docs.priv.staging.komoju-dev.tools/en/docs/platform-model/payment-processing-overview"
source_url: "https://docs.priv.staging.komoju-dev.tools/en/docs/platform-model/payment-processing-overview.md"
language: en
last_modified: "2026-03-26"
---

Once you have successfully onboarded both yourself and your sub-merchants, you can start processing payments between your account and theirs.

# About the Processing Merchant

The `processing_merchant` is the entity responsible for processing payments. Key points include:

- The `processing_merchant` is equivalent to the MoR (Merchant of Record).
- The `processing_merchant`'s credentials will be used to process the payment request.
- The `processing_merchant` is first credited with the payment amount and then transfers the required amounts to the other specified participants.
- The `processing_merchant` is responsible for paying the KOMOJU Processing Fee for each captured payment.

In the Seller Processing Model (for Platform Use Case), the `processing_merchant` is the Seller Merchant.

In the Platform Processing Model (for Marketplace Use Case), the `processing_merchant` is the Platform Merchant.

# Actions for a payment

The **Payment** function enables the Platform Merchant to execute various actions via the KOMOJU APIs or the dashboard:

| Action | KOMOJU API | KOMOJU Dashboard |
| --- | --- | --- |
| Create a Payment | O | X |
| Two-step Capture | O | X |
| Cancel a Payment | O | O |
| Create a Reverse Refund | O | O |
| Create a Reverse Refund Request | O | O |
| Create a Non-Reverse Refund | O | X |
| Create a Non-Reverse Refund Request | O | X |

> ℹ️ **Note:** **Subscription is not supported**
>
> KOMOJU Platform Model only supports one-time payments and does not accommodate subscription-based payments.

# Seller Processing Model for Platform Use Case

If the Platform Use Case applies to your business, you should adopt the **Seller Processing Model**. In this model, the Seller Merchant acts as the Processing Merchant, meaning payments are processed under the Seller Merchant's account.

For more information, visit:

- [Seller Merchant Payment Processing](https://docs.priv.staging.komoju-dev.tools/en/docs/platform-model/seller-merchant-payment-processing.md)

# Platform Processing Model for Marketplace Use Case

If the Marketplace Use Case applies to your business, you should adopt the **Platform Processing Model**. In this case, the Platform Merchant acts as the Processing Merchant, so payments are processed under the Platform Merchant's account.

For more information, visit:

- [Platform Merchant Payment Processing](https://docs.priv.staging.komoju-dev.tools/en/docs/platform-model/platform-merchant-payment-processing.md)

# Balance Transfer

Using the **Balance** function, the following actions can be triggered by the Platform Merchant via the KOMOJU API:

- Transfer balance from the Platform Merchant to a sub-merchant
- Transfer balance from a sub-merchant to the Platform Merchant

For more details, visit:

- [Balance Transfers](https://docs.priv.staging.komoju-dev.tools/en/docs/platform-model/balance-transfers.md)