An affiliate payout is the payment of commission to an affiliate, a publisher or partner who has sent customers to a merchant under an affiliate marketing programme. The merchant, or more often an affiliate network acting between many merchants and publishers, tracks referred sales, calculates commission, and pays each affiliate on a fixed cycle once earnings pass a minimum threshold.
Money normally flows from the merchant to the network, which holds it and pays out in bulk. Commission is held until the return period on the underlying sale has passed, so that refunded orders can be clawed back. Because affiliates are spread across many countries, networks use a mass payout provider that can reach local bank accounts, wallets and cards, and collect tax forms and identity details during onboarding. The payout fee and any currency conversion are commonly deducted from the affiliate's earnings. Holding and distributing these funds can require a payments license or a licensed payout partner.