Payout routing is the decision process by which a payout provider selects the path for each outgoing payment. A provider typically has several options for reaching the same recipient: more than one payout rail, several partner banks, and in cross-border cases more than one local payout partner in the destination country. Routing applies the principles of payment routing to money going out.
The choice weighs the destination country and currency, the kind of account details supplied, the amount against each rail's limits, the speed the sender has asked for, cost, and each route's recent success rate. Choosing the cheapest route that meets the requirements is the payout form of least-cost routing. If the chosen route is down or rejects the payment for a technical reason, failover routing sends it by an alternative, with care taken that the first attempt has definitely failed so that the recipient is not paid twice.