Building a Freelance Marketplace on Paystack

// Client pays for a project
app.post('/api/projects/:id/pay', async (req, res) => {
  var project = await db.projects.findById(req.params.id);
  var freelancer = await db.freelancers.findById(project.freelancer_id);
  var commissionRate = 0.10; // 10% platform commission
  var freelancerShare = Math.round((1 - commissionRate) * 100); // 90%

  var reference = 'proj_' + project.id + '_' + Date.now();

  var response = await fetch('https://api.paystack.co/transaction/initialize', {
    method: 'POST',
    headers: { Authorization: 'Bearer ' + process.env.PAYSTACK_SECRET_KEY, 'Content-Type': 'application/json' },
    body: JSON.stringify({
      email: req.user.email,
      amount: project.budget * 100,
      subaccount: freelancer.subaccount_code,
      percentage_charge: freelancerShare,
      bearer: 'account',
      reference,
      metadata: { project_id: project.id, action: 'escrow_hold' },
    }),
  });

  var data = await response.json();
  res.json({ authorization_url: data.data.authorization_url });
});

Important: For true delayed settlement, create the freelancer subaccount with settle_interval: "manual". This holds the funds until you explicitly trigger settlement. Contact Paystack support to enable manual settlement on your account.

// Client approves the delivered work
app.post('/api/projects/:id/approve', async (req, res) => {
  var project = await db.projects.findById(req.params.id);

  await db.projects.update({ status: 'approved', approved_at: new Date() }, { where: { id: project.id } });

  // If using manual settlement: initiate settlement for the subaccount
  // Or: transfer from your balance to the freelancer recipient
  await fetch('https://api.paystack.co/transfer', {
    method: 'POST',
    headers: { Authorization: 'Bearer ' + process.env.PAYSTACK_SECRET_KEY, 'Content-Type': 'application/json' },
    body: JSON.stringify({
      source: 'balance',
      recipient: project.freelancer_recipient_code,
      amount: Math.round(project.freelancer_earnings * 100),
      reason: 'Project payment: ' + project.title,
      reference: 'release_' + project.id,
    }),
  });

  res.json({ released: true });
});

This guide is part of the Paystack split payments guide.

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