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 tab
- 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 tab
- 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 tab
- 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.
How do disputes, refunds, and ach returns impact the merchant payout?
Disputes, refunds, and ACH returns each affect a merchant's payout differently, as they represent funds being pulled back from a previously processed transaction. Here’s a breakdown of how each impacts the payout amount:- Disputes: When a customer initiates a dispute (also known as a chargeback), the disputed amount is deducted from the merchant’s payout. If the dispute is resolved in favor of the merchant, the funds may be returned in a future payout. However, if the dispute is lost, the funds remain permanently deducted, along with any applicable dispute fees.
- Refunds: When a merchant processes a refund, the refunded amount is subtracted from their next payout. This ensures that funds returned to customers are balanced against the merchant’s available payout amount. If a refund exceeds the current payout, it may result in a negative payout balance, which could be deducted from a future payout or directly from the merchant’s bank account.
- ACH Returns: An ACH return occurs when a previously settled ACH transaction is reversed, often due to issues like insufficient funds or account closure. The amount of the returned ACH transaction is deducted from the merchant’s payout. If the return exceeds the available payout, similar to refunds, it could result in a negative balance that may be offset in a future payout or withdrawn directly from the merchant’s bank account.
Fees associated with disputes, refunds, and ACH returns will continue to be collected based on the merchant’s billing schedule.
The Payout Details page includes a 'Balance Carried Forward'. What is that?
The 'Balance Carried Forward' on the Payout Details page represents any funds from a previous payout cycle that were not included in that payout, often due to timing issues. This can happen for several reasons:- Unsettled funds: Sometimes, payments or adjustments may not fully settle before the payout is processed. In such cases, these unsettled amounts are carried forward to the next payout period.
- Negative balances: If the account had a negative balance due to refunds, disputes, or other adjustments, that balance may carry forward until sufficient positive funds are available to offset it.