Merchant Accounts: Distribution

Distribution Settings

The distribution settings is a powerful tool for merchants wishing to process transactions on multiple merchant accounts.

There are many business application scenarios that can benefit from merchant account distribution.


A distribution setting comprises three elements:

  • Distribution Group - a means of transaction filtering that would differentiate some transactions from others such as card type, product purchased, geographic location.
  • Merchant Accounts - the total account which will handle the transactions according to the distribution settings
  • Percentage Setting - a determination of the distribution group's volume, in percentage, that should be distributed to each merchant account

Distribution Groups

The available distribution groups are:

  • Currency - the international currency in which the transaction was executed. These are displayed in three-character currency format
  • Locale - the country from which the transaction is made
  • BIN/Bank - the first six digits of a credit card. One BIN may be specified, or the distribution group could consist of a range of BINs
  • Product - Inovio product ID's that have been tied to price points.
  • Affiliate Group - a set of affiliate ID's
  • Card Types - the type of card such as credit, debit, prepaid, corporate. More specific types can be selected

Merchant Accounts

Determine which merchant accounts will be used in the distribution. Perhaps one merchant account only accepts transactions in US Dollars; perhaps one does not accept Discover.

Percentage Setting

A choice can be made to direct 100% of a distribution group to a designated merchant account, or it can be split among multiple accounts.  When split among multiple accounts, the percentage must total 100 for each group. The portal will reject a percentage configuration that does have a sum of 100.


Example Scenario

Part 1.

Faux Co has a membership site and three merchant accounts. The authorization cap on their main account is usually sufficient, but they had a successful wave recently that put them over ther maximum processing volume, and an increase of the cap is pending.  A decision is made to send some traffic to another account as a buffer because another successful trend is expected in the next few weeks.

 Part 2.

Faux Co has noticed a dramatic increase in the decline rate on both debit and prepaid cards on "FauxCo Second Bank."   They have called the acquirer to see what can be done, but haven't received a definitive answer after a week.  To circumvent the problem, they direct both of these card types specifically to their primary merchant account.

In the example below, this is set for Visa, and would need to be repeated for other card brands as necessary.


Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request


Article is closed for comments.