Emily Clarke

Guide to the Different Payout Methods Available

Whether you're accepting payments from customers on a marketplace website or need to send money to contractors worldwide, you have many options. The days of writing paper checks or doing standard bank transfers are over. With a platform for payouts API, you can send and receive money in various ways, offering greater flexibility to you, your customers and anyone you hire.

Here's a quick breakdown of the many different payout methods available.

Debit and Credit

Debit and credit cards are a standard that most people have. They look similar, but these two methods differ in key ways.

First, payments made with credit cards come from a revolving line of credit offered by a bank. Meanwhile, payouts from debit cards come directly from your bank. Typically, the technology and processing systems used to send debit and credit payouts are identical.

Mobile Payouts

Newer phones have robust financial capabilities built right in. Many have near-field communications (NFC), allowing you to "tap to pay" and use your phone like a debit card.

This method offers greater security thanks to smartphone biometrics and tokenized transactions.

Electronic Funds Transfer

Electronic funds transfers (EFTs) are great for sending payouts directly to a recipient's bank. EFTs process through an automated clearing house (ACH). Meanwhile, wire transfers move money from bank to bank.

An EFT payout is often the go-to payment method for sending money domestically. But if you have international recipients, wire transfers are better suited for your needs. With a platform for payouts API, you can do both and automate the process.

FinTech Apps and Services

There are many services available in the fintech space. Some of the most popular include PayPal, Venmo and CashApp. The biggest benefit of sending payouts via these apps is versatility.

Most services operate internationally, making them viable for recipients outside the United States. They also don't require the exchange of banking information, adding another level of security. With their simplicity and accessibility, fintech apps are a popular choice among companies that need to pay many individuals simultaneously, such as marketplace sellers and gig workers.

Author Resource:-

Emily Clarke writes about multiple payment platforms, payouts API, marketplace payouts and more. You can find her thoughts at easy payouts API blog.