Introduction
In the dynamic landscape of e-commerce and digital transactions, the connection between Merchants and Submerchants is more than a transaction-it’s a lifeline for those like Damini. Damini is a single working mother, dedicating six days a week to earn a daily wage from Royal Restaurant – a submerchant operating within the realms of an agreement with Chokhi Dhani Luxury Resort (Merchant). Each transaction involves a unique commission structure, with the submerchant obligated to pay a certain percentage to both the Merchant and the bank.
This arrangement, outlined in the Merchant-Sub Merchant agreement, often leads to delays in payments, creating a poignant struggle for Damini as she strives to meet the basic needs for her three children. The challenges extend beyond financial hurdles, impacting the very fabric of daily life for those dependent on timely wages.
The Challenge
The manual reconciliation processes employed in these complex financial transactions are not only time-consuming but also prone to errors. Delays in settling payments to sub merchants, like Royal Restaurant, result in a ripple effect, impacting workers like Damini who depend on these settlements for their daily wages. Beyond the human impact, discrepancies between Merchant transaction files and bank statements pose significant business challenges, leading to disruptions in cash flow and potentially hindering strategic financial planning. Streamlining this reconciliation process becomes imperative for maintaining a robust business ecosystem, ensuring timely payments to sub-merchants, and fostering sustained financial stability. Read more
