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 contractor 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:

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 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. You have to complete the micro-deposit verification process before using the linked bank account to send funds.

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 a contractor, you will also need to request the 1099 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

With the marketplace and designer’s accounts 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 transfer amount. 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

If the marketplace is funding the payout with their linked bank account, you will always use a payment method type ach-debit-fund for the transfer source. 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 Moov.js, our in-browser JavaScript SDK. Or, if you’re interested in other use cases, you can dive into our guides: