Payouts
Payouts represent any deposits and withdrawals against a merchant's bank account. A merchant's payout speed and payout type is dependent on their risk profile and processor.
Payout Speed
A merchant's payout speed indicates the interval between a transaction's settlement and the initiation of the payout, typically denoted as T+X days. T signifies the day of transaction settlement, while X represents the days until the funds are available for payout.
| PAYOUT SPEED | DAY 1 | DAY 2 | DAY 3 | DAY 4 | DAY 5 |
|---|---|---|---|---|---|
| NDF (Next Day Funding) | Payment initiated and payout is sent | Funds arrive in merchant's bank account | |||
| T+0 | Payment initiated | Payment settles and payout is sent | Funds arrive in merchant's bank account | ||
| T+1 | Payment initiated | Payment settles | Payout is sent | Funds arrive in merchant's bank account |
View payout speed
The payout speed can differ between payment methods, such as card and bank-to-bank.
To view a merchant's payout speed in the Dashboard:
- Navigate to Merchant Management > Merchants
- Select the respective merchant
- Select the Processing Details table
- Locate the Billing & Payout Schedule widget for the desired payment method
Payout Type
supports both gross and net payout, depending on the merchant's processor and payment method:
- For online payments processed through Paysafe, gross and net funding are available.
- For online and in-person payments processed through TSYS, only gross funding is available.
- For bank-to-bank payments, only net funding is available.
Net payout
In net payouts, processing fees are deducted from the gross charge amount before depositing funds into the merchant's account. The merchant receives the net amount, which is the charge amount minus the processing fees. In this case, the processing fees are deducted automatically, and the merchant doesn't need to separately pay the fees.
For example, if a customer makes a $100 purchase and the processing fee is 2%, the merchant would receive the net amount of $98 directly, with the $2 processing fee already deducted.
Gross payout
In gross payouts, the merchant receives the full amount of the payments processed. Processing fees are deducted separately from the merchant's bank account.
For example, if a customer makes a $100 purchase and the processing fee is 2%, the merchant would receive the full $100, and the processing fee of $2 would be billed separately.
View payout type
The payout type can differ between payment methods, such as card and bank-to-bank.
To view a merchant's payout type in the Dashboard:
- Navigate to Merchant Management > Merchants
- Select the respective merchant
- Select the Processing Details table
- Locate the Billing & Payout Schedule widget for the desired payment method
Payout Frequency
A merchant's payout frequency refers to how often funds are paid out to their bank account. By default, all merchants are set up for daily payouts (excluding weekends).
Manage payout frequency
Updating the payout frequency through the Dashboard is exclusive to merchants on Flex Billing. For merchants on Processor Billing, please email .
To view and update a merchant's payout frequency in the Dashboard:
- Navigate to Merchant Management > Merchants
- Select the respective merchant
- Select the Processing Details table
- Locate the Billing & Payout Schedule widget for the desired payment method and click the Edit icon
- Select the desired payout frequency and anchor day, if applicable
- Click the Save Billing and Payout Schedule button
Payout States
| DASHBOARD STATUS | API STATUS | DESCRIPTION |
|---|---|---|
pending | pending | Funds are accumulating but the payout has not been initiated. |
paid | paid | The payout has been initiated. Funds will be deposited in the merchant's bank account. |
withdrawn | paid | A negative payout, also known as a collection, has been initiated. Funds will be withdrawn from the merchant's bank account. |
failed | failed | The payout attempt failed. The payout will be automatically retried. |
FAQ
A payout was initiated but hasn't arrived in the merchant's bank account. Where is it?
If the merchant expected a payout and it was sent less than 5 business days ago, the payout is currently being processed by the bank. Banks can delay processing due to weekends and holidays. Once the bank finishes processing the payout, the funds will be deposited into the merchant's account automatically.A payout hasn't been initiated. Why is that?
A merchant's payout may be delayed for the following reasons:- Minimum account balance: The merchant's account balance doesn't meet the minimum payout amount of $5.
- Payout speed: Due to the merchant's payout speed, their funds have not been released.
- Funding hold: A funding hold may be placed on a merchant's account if there are issues related to bank verification, suspected fraud, or volume limit exceptions. To release the hold, additional documentation will be requested from the merchant.