Pay-out, in terms of payment processing, is a stage at which the merchant gets his funds from sales. These funds are transferred from his merchant bank account to his business bank. The merchant’s PSP transfers the money. The regularity of pay-outs depends on the PSP of the merchant’s choice and the payment method he uses. Let’s take a look at some examples to make it clear:
- SEPA transfer. SEPA is a remittance system of the EU. The core principle behind the remittance system is the bank-bank-bank-bank transfer. Simply put, money is transferred directly from the client’s bank account to the merchant’s bank account. SEPA transfer takes up to three days. Once the merchant receives SEPA transfer, it will take up to fourteen more days (usually less) for a PSP to pay-out the funds to your business bank account.
- Credit card transfer. Once the consumer pays on your website with a credit card, it will take up to three days for funds to be transferred to your merchant account. Then, you can opt for a pay-out from your PSP.
- ACH transfer. It takes five days for you to accept ACH transfer to your merchant account. Once again, after the funds are received, you can ask for a pay-out. The duration of pay-out depends on the PSP.
The regularity of transfers (read pay-outs) from your merchant account to your business account varies on a PSP of your choice. It usually takes from one up to 14 days.