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Pay out money

At Moov, we think of payouts as any instance where you need to send funds as compensation (e.g, you need to pay an independent contract or service provider). In this guide, we cover the flow for initiating payouts with Moov.

We’ll use a hypothetical example with the following key players:

  • The developer who’s building a marketplace (you)
  • A marketplace that helps freelance designers find and get paid for contract projects (account paying money)
  • Freelance designer (account receiving money)

In this example, you would be using Moov to help the marketplace pay a freelance designer who completed work and needs to get paid through the platform.

Get your access token

To get started, you’ll need to:

tip
For more detailed instructions, see our Quick start guide.

Enable payouts

The main prerequisites for payouts are making sure that all the accounts involved:

  • Have the right capabilities enabled
  • Are linked to a bank account

You will need to request the send-funds capability for the marketplace’s account. The capabilities endpoint will then specify what information we need about the marketplace as a company in order for us to enable the requested capability.

In addition, you’ll need to have bank account information for the marketplace so that you can add that bank account as a funding source for paying the designers on your platform. Before you can actually use the linked bank account to send funds, you have to complete the micro-deposit verification process.

Add an account to pay

The next step is setting up the designer’s account. If you haven’t already, go ahead and create a Moov account for the designer you’re paying. Request the transfers capability for their account. Since they are are a contractor, you will also need to request the receive-1099-k capability.

Moov recommends that you consult a tax advisor to determine your tax filing and reporting requirements.

Once again, the capabilities endpoint will specify what information Moov requires based on the capabilities you’ve requested.

Lastly, add a bank account for the designer.

Initiate the payout

Now that both the marketplace and designer’s accounts have been set up with the right capabilities and bank accounts, you’re ready to create the payout. First, get a list of the available transfer options for both accounts. The list includes all the payment methods the marketplace and designer can use based on their linked bank accounts and the amount of the transfer. You can choose a payment method that best fits the situation, depending on:

  • How fast the money should land in the designer’s account
  • The fees the marketplace is willing to pay

Once you’ve selected the payment methods for the transaction, you can initiate a transfer, using the payment method IDs you got earlier in the transfer options request.

What’s next

Feel free to explore our API reference or take a look at additional use case guides: