A merchant payout is the payment by which a merchant receives the money from its sales. Customers pay by card or another method; the funds pass through the card networks to the merchant's acquirer or payment service provider; and the provider then transfers the total, usually once per business day, to the merchant's settlement bank account by a domestic bank transfer.
The amount paid is rarely the same as gross sales. Under net settlement the provider first deducts processing fees, refunds and any chargeback, and may withhold a merchant reserve against future disputes. Timing follows the payout schedule agreed in the merchant's contract, commonly one to three business days after the sale, and is tied to the merchant settlement cycle of the networks behind it. Providers supply a report listing the transactions included in each payout so the merchant can match the bank credit to its sales records.