Payouts

Process for recipients to withdraw funds from their internal ledger balance to external bank accounts or wallets.

Payout Process

Steps from withdrawal request to fund receipt

1

Recipient Requests Withdrawal

Recipient initiates payout request from available balance in internal ledger.

  • Recipient selects withdrawal amount
  • Amount validated against available balance
  • Minimum withdrawal thresholds checked
2

Payout Method Selection

Recipient selects or adds destination for funds.

  • Bank account, card, or wallet selected
  • New payout method added if needed
  • Method verification may be required
3

Compliance & Risk Checks

Pre-payout verification before funds are released.

  • Recipient verification status confirmed
  • Payout velocity and limits checked
  • Sanctions/PEP screening (if applicable)
  • Hold or review triggered if flagged
4

Payout Execution

Funds transferred to recipient's external account.

  • Payout instruction sent to banking partner
  • Ledger balance debited
  • Transaction recorded
5

Recipient Receives Funds

Funds arrive in recipient's bank account or wallet.

  • Settlement time depends on method and provider
  • Confirmation sent to recipient
  • Payout marked as completed

Pre-Payout Verification

Checks performed before payout execution

Recipient Eligibility

  • Verification status: must be verified or meet minimum requirements
  • Account status: not suspended or restricted
  • No pending compliance cases blocking payouts

Risk & Limits

  • Payout velocity checks (frequency and volume)
  • Daily/weekly/monthly payout limits
  • Unusual pattern detection

Failure Cases

Handling of unsuccessful payout attempts

Invalid Payout Method

Bank account details incorrect or account closed. Funds returned to internal ledger.

Resolution: Recipient must update payout method and retry.

Compliance Hold

Payout flagged by compliance controls. Manual review required.

Resolution: Compliance team reviews and approves or declines. Recipient notified.

Provider Rejection

Banking partner rejects payout instruction.

Resolution: Retry with different method or escalate to operations.

Insufficient Balance

Available balance less than requested amount after holds.

Resolution: Recipient adjusts withdrawal amount or waits for pending funds.

Retry/Rollback Behavior: Specific retry logic and rollback procedures are handled by operations based on failure type and provider capabilities. Manual intervention may be required for certain failure scenarios.

Payout Status Reference

PendingApprovedHeldPaid OutFailedReversed
Note: Details may vary by PSP/acquirer integration and regulatory requirements.

Compliance Documentation • For Acquirer Onboarding

Details may vary by PSP/acquirer integration and regulatory requirements.