Splitting Payments for SACCOs and Chamas

// Monthly contribution: NGN 5,000
// Savings fund: 3,000 (60%)
// Welfare fund: 1,000 (20%)
// Operational: 1,000 (20% stays in main account)

app.post('/api/contributions', async (req, res) => {
  var { memberId, email } = req.body;
  var group = await db.groups.findByMemberId(memberId);

  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,
      amount: 500000, // NGN 5,000 in kobo
      split_code: group.contribution_split_code, // Pre-created split group
      metadata: {
        member_id: memberId,
        group_id: group.id,
        contribution_month: new Date().toISOString().slice(0, 7),
      },
    }),
  });

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

// On charge.success: record the contribution
if (event.event === 'charge.success') {
  var meta = event.data.metadata;
  if (meta?.member_id) {
    await db.contributions.create({
      member_id: meta.member_id,
      group_id: meta.group_id,
      month: meta.contribution_month,
      amount: event.data.amount / 100,
      reference: event.data.reference,
      status: 'paid',
    });
    // Update member's total savings balance
    await db.memberBalances.increment({ member_id: meta.member_id, amount: 3000 }); // Savings portion
  }
}

// Quarterly dividend payout via bulk transfer
async function payDividends(groupId, dividendPerMember) {
  var members = await db.members.findAll({ where: { group_id: groupId, status: 'active' } });

  var transfers = members.map(member => ({
    amount: Math.round(dividendPerMember * 100),
    reference: 'div_' + groupId + '_' + member.id + '_' + Date.now(),
    reason: 'Q2 2026 dividend',
    recipient: member.paystack_recipient_code,
  }));

  var response = await fetch('https://api.paystack.co/transfer/bulk', {
    method: 'POST',
    headers: { Authorization: 'Bearer ' + process.env.PAYSTACK_SECRET_KEY, 'Content-Type': 'application/json' },
    body: JSON.stringify({ currency: 'NGN', source: 'balance', transfers }),
  });

  var data = await response.json();
  return data;
}

This guide is part of the Paystack split payments guide.

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