Overview

A payout is the process of withdrawing funds from the Mangopay environment to an external bank account opened in the name of the Mangopay account holder.

As detailed in the prerequisites below, the user must be verified (their KYCLevel must be REGULAR) and the bank account must be valid and in their name.

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How Mangopay sends funds

How Mangopay sends a payout is determined by:

1. The user’s bank account and its type

Bank accounts in the API have a different Type depending on the country of registration of the account, and different information is required for each to reflect local formats (see bank accounts prerequisites below).

The country of registration of a bank account is not linked to its currency. For example, a EUR payout to an account registered in the US requires a US-type account. A CAD payout to an account registered in Italy requires an IBAN-type account.

2. The currency of the payout

Mangopay can send payouts in a wide range of currencies – see the currencies page for details.

Receiving banks can be anywhere in the world. The currency of the payout combines with the account type to determine whether the bank wire is sent locally or internationally, which impacts processing times and costs.

For more information, see the bank wire glossary definition.

3. The mode requested by the platform (if EUR in SEPA)

By default, the standard mode is used to make payout requests:

• Standard – Sent via the relevant route for the currency and destination account, which determine the processing times and cutoffs that apply. If a request is received after the cutoff, it is processed the next working day.

If the payout is in EUR in the SEPA zone, Mangopay offers two other modes which platforms can specify in their requests to the POST Create a Payout endpoint:

• Instant payment – Sent via the SEPA Instant Credit Transfer scheme, meaning funds are processed within 25 seconds. There is a fallback mechanism that platforms can use to revert to standard mode in case of an issue or not. For more details, see the instant payout guide.
• Real-time gross settlement (RTGS) – Sent via the Eurozone’s RTGS scheme, T2, meaning funds are usually processed within 5 minutes. If the request is received after the applicable cutoff (16:15 CET), it is processed the next working day (from 07:00 CET). For more details, see RTGS below.

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Basic flow

Mangopay’s e-wallet system allows users of the Owner category to hold funds in their wallets. The user must be verified to withdraw funds to their bank account as a payout.

The flow is as follows:

• Ensure the Owner user is verified (KYCLevel is REGULAR)
• Create a Bank Account to register their bank account
• Create a Payout to request that Mangopay wire the funds

See payouts endpoints

Once the payout is successfully requested, its status becomes CREATED.

You should set up hook notifications for the following event types to be notified of its progress:

• PAYOUT_NORMAL_SUCCEEDED
• PAYOUT_NORMAL_FAILED

The SUCCEEDED status indicates that Mangopay successfully processed the payout and sent the funds. There are some cases where the funds are returned by the receiving bank and Mangopay creates a payout refund (see below).

In case of a FAILED status, you can use the GET View a Payout endpoint to see more information, particularly the ResultCode and ResultMessage. For more information on specific errors, see Error codes.

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Prerequisites

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User verification

Mangopay has legal obligations to verify the identity of users who wish to make payouts. Therefore, payouts can only be performed to bank accounts whose owner (as defined by the Bank Account object’s User) is verified.

If the user is not verified, the payout Status will automatically be set to FAILED after being processed by Mangopay. This processing usually takes a few seconds, but can be longer due to the amount or supplementary fraud checks.

In addition, you should pay special attention to the identities of the payout author and bank account owner. Indeed, when the payout author is different from the bank account owner, the Payout AuthorId value must be different from the Bank Account UserId value as well. Otherwise, Mangopay’s Compliance team will reject the payout.

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Bank accounts

Different information is required for bank accounts in different countries. This is managed by the Bank Account Type parameter, which determines the information that needs to be provided via the dedicated endpoint. The values are:

• IBAN – For accounts registered in countries that use IBAN (including the UK when the payout currency is not GBP)
• US – For accounts registered in the United States
• CA – For accounts registered in Canada
• GB – For accounts registered in the United Kingdom only when the payout currency is GBP (for other payout currencies, use the IBAN type)
• OTHER – For accounts registered in countries that do not use IBAN (and are not the US, Canada, or the UK)

The country of registration of a bank account is not linked to its currency.

For USD and CAD payouts made by a natural user, the Address of the author must be provided.

For payments to GB accounts, the OwnerName must match either the FirstName and LastName of the corresponding natural user, or the Name of the corresponding legal user.

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Country restrictions

Due to AML policy, we don’t accept the creation of bank accounts and payouts to some countries. Please refer to the Country restrictions article for more information.

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Minimum amount

Mangopay does not impose a minimum amount on payouts. The minimum amount possible is dictated by the rules of the underlying scheme used to send the payout. For example, the SEPA Credit Transfer (SCT) scheme accepts a minimum amount of EUR 0.01, and the Faster Payments System (FPS) in the UK allows GBP 0.01. Other schemes may impose different minimum amounts.

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Standard payout processing

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Cutoffs and processing times

Standard payouts are processed by Mangopay as quickly as possible. Some payouts are subject to manual review by Mangopay’s teams for reasons of risk management or AML/CFT - these may take longer.

Payouts created before the cutoff times outlined below are transferred to the user’s bank account within the corresponding processing times. Payouts created after the cutoff are processed next working day.

Cutoffs and processing times vary between currencies and target bank account types:

Currency	Bank account type	Cutoff	Processing time
EUR	All types	15:30 CET	2 working days
GBP	GB	N/A	~10 seconds up to 2 hours
GBP	IBAN	15:30 CET	2 – 5 working days
USD	US	15:30 CET	1 working day
USD	OTHER	15:30 CET	2 – 5 working days
CAD	CA	15:30 CET	1 – 2 working days
DKK	IBAN	15:30 CET	2 working days
Other	All types	15:30 CET	2 – 5 working days

Standard payouts are not processed on the public holidays listed in France.

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Faster Payments in the UK

For GBP payouts to GB bank accounts, Mangopay sends them automatically via the Faster Payments System (FPS).

The payout is usually processed in a matter of seconds (the Status changes from CREATED to SUCCEEDED) but there can be a delay of up to two hours. The service is available 24/7, 365 days of the year, so there is no cutoff for processing.

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Cost-bearing for international USD payouts

For USD payouts sent internationally (that is, not to US-type bank accounts), Mangopay can enable platforms to shoulder the full cost of any processing fees that may arise from correspondent banks. This allows the beneficiary to receive the full amount of USD international payouts.

When activated, cost-bearing uses the OUR configuration of SWIFT international bank wires instead of the SHA option used as standard for international payouts. The fees borne by the platform are recuperated by Mangopay during the usual billing cycle.

Please note that this setting can only be applied to all international USD payouts and is not available on a payout-by-payout basis. A contractual amendment is also required. To activate this option for your platform, contact our teams via the Dashboard.

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Real-time gross settlement (RTGS)

For high-value EUR payouts in the SEPA zone, Mangopay offers real-time gross settlement (RTGS) via the Eurozone’s T2 scheme (formerly called TARGET2).

To request RTGS, set the PayoutModeRequested to RTGS_PAYMENT in calls to the POST Create a Payout endpoint.

Funds are usually processed within 5 minutes. The T2 scheme is open 07:00 – 16:15 CET, 5 days a week. Payout requests received outside these hours are processed the next weekday. The T2 scheme is closed at weekends and on the following days if they fall on a weekday: 1 January (New Year’s Day), Good Friday, Easter Monday, 1 May (Labour Day), 25 December (Christmas Day), 26 December.

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Refunds using payouts

A Refund object cannot be created to reimburse the initial pay-in on two payment methods:

• Bank wire pay-in
• Pay-in to virtual IBAN

In these cases, a payout must be used instead.

For the payout to be correctly processed as a reimbursement, you must reference the initial transaction in the payout request. To do so, use the PaymentRef body parameter when you call the POST Create a Payout endpoint:

1. Set the ReasonType value to PAYIN_REFUND to indicate that the payout is serving as a refund
2. Provide the Id of the initial pay-in as the ReferenceId value

Note the following conditions and possibilities:

• The ReferenceId value must be the Id of a pay-in that was successful (it’s Status is SUCCEEDED)
• The Fees value can’t be negative, meaning that you can’t reimburse any fees taken on the initial bank wire pay-in
• You can create multiple payouts that reference the same pay-in Id

If a payout containing a PAYIN_REFUND reference is returned, it follows the same process as other payouts.

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Payout returns

Successful payouts (i.e. with Status value SUCCEEDED) can be rejected by the acquiring bank, for example if the bank account is closed or not compatible (e.g. a savings account). In some cases, Mangopay is able to request the recall on behalf of a platform or user.

In this scenario, Mangopay creates a Refund object for the payout so that the funds can be returned to the wallet.

Set up hook notifications for the following event types to be notified of this:

• PAYOUT_REFUND_CREATED
• PAYOUT_REFUND_SUCCEEDED
• PAYOUT_REFUND_FAILED

You can use the GET View a Refund endpoint to see details of the payout return.

Additional information regarding the return can be found in the RefundReason object returned by the API.

Possible RefundReasonType are:

• BANKACCOUNT_INCORRECT
• BANKACCOUNT_HAS_BEEN_CLOSED
• OWNER_DOT_NOT_MATCH_BANKACCOUNT
• WITHDRAWAL_IMPOSSIBLE_ON_SAVINGS_ACCOUNTS

The refund reason type may be accompanied by a custom message in the RefundReasonMessage parameter.

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Related resources