A payout limit is a ceiling on how much money can be paid out, or how many payouts can be made, in one transaction or within a day, week or month. It may apply to the business sending payouts, to each recipient, or to a particular destination such as one debit card. A payout above the limit is refused, split into several payments or delayed to the next period.
Limits come from several sources. Each payout rail has its own maximum: instant payment schemes and push-to-card services cap the value of a single transfer. Providers add risk limits, which are lower for new accounts and for instant payout than for standard payouts, and often take the form of a velocity limit on frequency. Regulation contributes too: under tiered KYC, recipients who have supplied less identification may receive less. Limits are usually raised by completing verification or building a transaction history.