Course Platforms: Who Is the Seller?

Why does the instructor model change the referral?

The ISO needs to identify which business is being introduced for which payment activity. A training company that buys teaching services and sells its own course has a different commercial description from a platform collecting money for independent course sellers. The same landing page can conceal that difference.

Ask who contracts with the student, who appears on the receipt and who owes the purchased instruction. Those answers should agree with the proposed payment arrangement. MerchantBridge can explore potential processing options for the described education business; it does not promise platform payouts or acceptance for every course or jurisdiction.

Sources: Stripe: Create separate charges and transfers; Electronic Code of Federal Regulations: 16 CFR Part 254: Guides for Private Vocational and Distance Education Schools; MerchantBridge Advisors: Related MerchantBridge industry overview

How can one course illustrate two different models?

In a hypothetical first model, Training Company A sells a $600 course and hires an instructor for an agreed teaching fee. The student buys from A; the instructor's invoice is a separate business expense. That description does not automatically make the instructor a separate seller at checkout.

In a second hypothetical model, Instructor B sells the course while Platform A collects $600, retains a platform fee and sends the remainder to B. The ISO should describe the third-party collection and payout request explicitly. Do not present only the platform's retained fee as the gross amount collected, or treat the entire flow as an ordinary software subscription. The examples illustrate questions, not legal classification or provider approval.

Does payment software settle the seller question?

No. Stripe's separate-charges-and-transfers documentation provides one provider-specific example of a platform charge followed by transfers to connected accounts. That capability does not establish who should be the seller in this business, or whether a different provider offers the same structure.

Describe the required commercial behavior before naming a feature: which entity takes payment, which entity owes instruction, how instructors receive money and what happens if a course is cancelled. Ask the prospective provider to confirm the supported implementation and responsibilities. Do not imply that MerchantBridge supplies Stripe Connect or an equivalent platform product.

What education claims need a separate check?

The FTC's vocational and distance-education guides address representations within their stated scope, including accreditation and related claims. They are not a universal requirement that every professional course be accredited. The ISO should accurately report the provider's public credential claims and flag any unresolved substantiation question.

Keep course delivery distinct from college-application document preparation. Also separate a certificate of participation from a claimed professional qualification. A payment referral does not verify educational outcomes, licensing eligibility or recognition by an accreditor.

What checklist makes this introduction usable?

Use a fictional course and aggregate business figures to answer the following questions. No student names, grades or education records are needed.

• Who is the seller named in the student agreement and receipt?
• Who controls price, enrollment, delivery and cancellation?
• What amount is collected, and what portion is owed to another business?
• How many instructor or seller entities participate, and where are they located?
• Who handles a cancelled course and the related refund?
• What credentials are advertised, and what remains to be verified?

What is the next referral step?

State whether the request is for the training company's own sales or for a platform collecting for others. If the business has both, describe each separately and ask whether they can be considered. An incomplete seller model should remain an open question rather than becoming a promise in the referral email.

Discuss the referral using your own details and a concise commercial outline. The receiving partner must determine eligibility, technical scope and terms; no referral compensation, residual arrangement or relationship protection is presumed.