In payment processing, what does a merchant typically receive in split funding arrangements?

In payment processing, split funding arrangements are designed to allocate funds from consumer transactions to different recipients according to a specific agreement. In these arrangements, a merchant typically receives partial payments deposited based on a predetermined formula that outlines how funds will be divided between various parties involved in the transaction.

This means that when a customer makes a purchase, the payment can be split into different portions that are sent to the merchant, service providers, or other stakeholders as per the established terms. This process is commonly used in scenarios where commissions or fees need to be paid to third parties, or where financing is involved, effectively allowing multiple stakeholders to benefit from a single transaction.

The other options do not accurately reflect the nature of split funding arrangements. For example, receiving all funds in cash or a fixed percentage of sales would not accommodate the needs of all parties involved in transactions that require fund distribution. Additionally, only receiving funds after consumer payments are verified implies a lack of upfront structure in how the funds are disbursed, which does not align with the mechanics of split funding where partial payments are predetermined and automatically processed.