Embedded Payments in Four Steps
From your first API call to recurring bps revenue on every transaction. Most engineering teams complete Phase 1 integration and onboard a test sub-merchant in 3–5 days.
Embed the REST API
A single POST to /v1/platforms/{platform_id}/merchants provisions a sub-merchant account and returns an onboarding URL and merchant token. Payment capture forms are hosted on PayNestio's PCI DSS-scoped infrastructure and embedded into your platform via iFrame or React component — no redirects, no third-party branding visible to your end users.
Most engineering teams complete Phase 1 in 3–5 days. API keys are issued immediately after your access request is approved. PayNestio does not provide money transmission licensing advice — your platform operates as a sponsored merchant under our payment facilitation agreement.
// Onboard a new sub-merchant
const response = await paynestio.merchants.create({
business_name: "Apex HVAC Services",
business_type: "llc",
payout_schedule: "T+2",
platform_fee_bps: 20
});
// Returns: { merchant_id, onboarding_url, status }Onboard Sub-Merchants
Sub-merchants complete a white-label KYC/KYB flow under your domain. The waterfall runs: business entity verification, beneficial ownership collection, OFAC SDN screening, and bank account authentication via instant ACH verification. Identity risk scoring determines whether approval is automatic or escalated for human review.
Standard LLC and sole proprietor profiles clear automatically. Complex entity structures and flagged profiles appear in your compliance dashboard's review queue. No manual document handling required from your ops team for standard cases.
Process and Route
Every payment captured through your platform flows through PayNestio's routing engine. Funds split according to your configured rules: platform fee retained, sub-merchant payout queued, any third-party recipients funded — all in a single settlement pass. AML monitoring runs continuously on payment patterns with configurable velocity thresholds.
HMAC-signed webhook events fire for every state change: payment.captured, settlement.queued, payout.initiated, chargeback.received. Your platform stays current without polling. PayNestio does not hold customer funds — settlement flows through our sponsor bank arrangement to sub-merchant accounts within the configured payout window.
Settlement Schedule
Configurable T+0, T+1, or T+2 windows per sub-merchant or globally.
1099-K Auto-filing
Threshold tracking, form generation, and IRS filing handled automatically.
Reconciliation
Daily settlement reports with per-transaction detail for your finance team.
Webhooks
Real-time events for every settlement state transition, payout, and filing.
Disburse, File, and Earn
ACH disbursements go out on your configured schedule — T+0 instant, T+1, or T+2 batch. Your platform fee, the bps margin you defined, is retained in your account on every transaction before the sub-merchant payout is queued. Reconciliation reports give your finance team per-transaction detail on gross amount, platform fee, sub-merchant net, and interchange pass-through.
At year-end, PayNestio generates IRS Form 1099-K for every sub-merchant that crossed the reporting threshold and files electronically via the FIRE system. You receive a filing confirmation report. Your platform is the payer of record for the 1099-K obligation — PayNestio handles the mechanical execution. PayNestio does not provide tax or legal advice.
Ready to embed payments in your platform?
Talk to our team to get API credentials and start Phase 1 integration.