What is Pay-out? - Ikajo Glossary



What is a pay-out?

Pay-out is a term that stands for the process of paying out the money. When you talk about the pay-out, it is usually connected with a big amount of money that is paid to some customers/merchants/corporations. For instance, funds that are paid by the underwriter to the corporation. It is also used to define if something comes out from the stock market.

In payment processing, pay-out stands for the funds that merchant gets from sales. The regularity of pay-outs depends on a PSP of the merchant’s choice. It usually takes from three to five days. Sometimes, it might last to up fourteen days. It is better to discuss the pay-out duration and limits when applying for a merchant account. It will help you to avoid some unpleasant surprises in the future. 

In finance, there is also a term payout of securities which means the process when the shares which the person wants to acquire are accepted from the clearing corporation. After that, the shares are relocated to the broker’s account. The day during which the exchange conducts payment or delivery of securities to the broker is called the payout day.

Some examples of the term:

The corporation has to pay-out 10 000 dollars to the underwriter this month.

It will take a couple of years for your investments to pay-out.

Merchant will get the pay-out within three days.

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