Method and system for processing transactions

A system for processing transactions, the system comprising:

• a payment interface configured to:
• receive transaction details of a transaction initiated by a payer, wherein the transaction details include a payee identifier of a first payee and a payment amount;
• access one or more databases based on the transaction details to retrieve account details of a second payee and a proportion value of the payment amount that is to be withheld for the second payee;
• initiate withholding of a first part of the payment amount based on the retrieved proportion value;
• and
• initiate deposit of the first part of the payment amount in a first account of the second payee that is linked to the retrieved account details.

A method for processing business to business transactions, the method comprising:

• receiving, by a payment interface, transaction details of a transaction initiated by a merchant, wherein the transaction details include a vendor identifier of a vendor and a payment amount;
• accessing, by the payment interface, a first look-up table based on the vendor identifier to retrieve a proportion value of the payment amount that is to be withheld for a tax collection authority;
• initiating, by the payment interface, withholding of a first amount from a merchant account of the merchant based on the retrieved proportion value;
• accessing, by the payment interface, one of the first look-up table or a second look-up table to retrieve account details of the tax collection authority for depositing the first amount;
• and
• initiating, by the payment interface, deposit of the first amount and the payment amount in first and second accounts, respectively, wherein the first account corresponds to the tax collection authority and is linked to the retrieved account details, and wherein the second account corresponds to the vendor.