Payouts: send funds to bank accounts

curl -X POST https://sandbox.straddle.com/v1/payouts \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "paykey": "pk_xyz789abc",
    "amount": 25000,
    "currency": "USD",
    "description": "Marketplace payout - October sales",
    "payment_date": "2024-10-15",
    "device": {
      "ip_address": "192.168.1.1"
    },
    "external_id": "payout_789"
  }'

const payout = await straddle.payouts.create({
  paykey: "pk_xyz789abc",
  amount: 25000,
  currency: "USD",
  description: "Marketplace payout - October sales",
  payment_date: "2024-10-15",
  device: {
    ip_address: "192.168.1.1"
  },
  external_id: "payout_789"
});

payout = straddle.payouts.create(
    paykey="pk_xyz789abc",
    amount=25000,
    currency="USD",
    description="Marketplace payout - October sales",
    payment_date="2024-10-15",
    device={
        "ip_address": "192.168.1.1"
    },
    external_id="payout_789"
)

{
  "meta": {
    "api_request_id": "3a2b1c4d-0e6f-4a88-9876-123456abcdef",
    "api_request_timestamp": "2024-10-15T10:00:00Z"
  },
  "response_type": "object",
  "data": {
    "id": "po_abc123def",
    "paykey": "pk_xyz789abc",
    "amount": 25000,
    "currency": "USD",
    "description": "Marketplace payout - October sales",
    "payment_date": "2024-10-15",
    "status": "created",
    "status_details": {
      "message": "Payout successfully created and awaiting validation.",
      "reason": "ok",
      "source": "system",
      "changed_at": "2024-10-15T10:00:00Z"
    },
    "external_id": "payout_789",
    "device": {
      "ip_address": "192.168.1.1"
    },
    "config": {},
    "metadata": {},
    "created_at": "2024-10-15T10:00:00Z",
    "updated_at": "2024-10-15T10:00:00Z"
  }
}

{
  "meta": {
    "api_request_id": "f1b1b1b1-1b1b-1b1b-1b1b-1b1b1b1b1b1b"
  },
  "response_type": "error",
  "error": {
    "status": 400,
    "type": "validation_error",
    "title": "Invalid Input Data",
    "detail": "The request contains invalid field values.",
    "items": [
      {
        "reference": "paykey",
        "detail": "The provided paykey is invalid or expired."
      }
    ]
  }
}

Payouts are credit transactions that push funds to a customer’s bank account. Unlike charges, which pull funds from customers, payouts require Straddle to withdraw funds from your account before sending them to recipients. This distinction affects both funding timing and cancellation windows.

What You’ll Learn

This guide provides complete coverage of the payout workflow:

Creating payouts with proper authentication and device tracking
Understanding the payout status lifecycle and the critical pending threshold
Managing payouts through updates, holds, and cancellations before network submission
Handling payout-specific failures like recipient refusals and frozen accounts
Working with multiple payment rails (ACH, Same Day ACH, RTP, FedNow)
Testing payout scenarios using sandbox outcomes

Use payouts for marketplace settlements, refunds, rewards, disbursements, or withdrawals—any scenario where you need to send money to verified bank accounts.

Payouts require a paykey - a token representing a verified bank account. Learn about connecting bank accounts in the Bridge guide.

The Payout Object

A payout represents a credit transaction with comprehensive status tracking and metadata:

{
  "id": "po_abc123def",
  "paykey": "pk_xyz789abc",
  "amount": 25000,
  "currency": "USD",
  "description": "Marketplace payout - October sales",
  "payment_date": "2024-10-15",
  "status": "paid",
  "status_details": {
    "message": "Payout successfully completed",
    "reason": "ok",
    "source": "system",
    "code": null,
    "changed_at": "2024-10-16T09:00:00Z"
  },
  "external_id": "payout_789",
  "device": {
    "ip_address": "192.168.1.1"
  },
  "config": {
    "sandbox_outcome": null
  },
  "metadata": {
    "seller_id": "seller_123",
    "period": "2024-10"
  },
  "payment_rail": "ACH",
  "paykey_details": {
    "bank_name": "Wells Fargo",
    "last4": "4321",
    "account_type": "checking"
  },
  "customer_details": {
    "name": "Jane Smith",
    "email": "[email protected]"
  },
  "trace_number": "071000301234568",
  "funding_ids": ["fe_def456"],
  "status_history": [...],
  "created_at": "2024-10-15T10:00:00Z",
  "updated_at": "2024-10-16T09:00:00Z",
  "processed_at": "2024-10-15T14:00:00Z"
}

Core Fields

Field	Type	Description
`id`	string	Unique payout identifier
`paykey`	string	Token for recipient’s bank account
`amount`	integer	Amount in cents (25000 = $250.00)
`currency`	string	Currency code (USD only)
`description`	string	Statement descriptor
`payment_date`	string	Processing date (YYYY-MM-DD)
`status`	string	Current payment status
`status_details`	object	Detailed status information
`external_id`	string	Your unique reference
`processed_at`	string	When sent to payment network
`trace_number`	string	ACH network tracking number
`funding_ids`	array	Related funding events

Creating a Payout

All payouts require these fields. For a complete list of fields, visit the Payouts API reference.

curl -X POST https://sandbox.straddle.com/v1/payouts \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "paykey": "pk_xyz789abc",
    "amount": 25000,
    "currency": "USD",
    "description": "Marketplace payout - October sales",
    "payment_date": "2024-10-15",
    "device": {
      "ip_address": "192.168.1.1"
    },
    "external_id": "payout_789"
  }'

const payout = await straddle.payouts.create({
  paykey: "pk_xyz789abc",
  amount: 25000,
  currency: "USD",
  description: "Marketplace payout - October sales",
  payment_date: "2024-10-15",
  device: {
    ip_address: "192.168.1.1"
  },
  external_id: "payout_789"
});

payout = straddle.payouts.create(
    paykey="pk_xyz789abc",
    amount=25000,
    currency="USD",
    description="Marketplace payout - October sales",
    payment_date="2024-10-15",
    device={
        "ip_address": "192.168.1.1"
    },
    external_id="payout_789"
)

{
  "meta": {
    "api_request_id": "3a2b1c4d-0e6f-4a88-9876-123456abcdef",
    "api_request_timestamp": "2024-10-15T10:00:00Z"
  },
  "response_type": "object",
  "data": {
    "id": "po_abc123def",
    "paykey": "pk_xyz789abc",
    "amount": 25000,
    "currency": "USD",
    "description": "Marketplace payout - October sales",
    "payment_date": "2024-10-15",
    "status": "created",
    "status_details": {
      "message": "Payout successfully created and awaiting validation.",
      "reason": "ok",
      "source": "system",
      "changed_at": "2024-10-15T10:00:00Z"
    },
    "external_id": "payout_789",
    "device": {
      "ip_address": "192.168.1.1"
    },
    "config": {},
    "metadata": {},
    "created_at": "2024-10-15T10:00:00Z",
    "updated_at": "2024-10-15T10:00:00Z"
  }
}

{
  "meta": {
    "api_request_id": "f1b1b1b1-1b1b-1b1b-1b1b-1b1b1b1b1b1b"
  },
  "response_type": "error",
  "error": {
    "status": 400,
    "type": "validation_error",
    "title": "Invalid Input Data",
    "detail": "The request contains invalid field values.",
    "items": [
      {
        "reference": "paykey",
        "detail": "The provided paykey is invalid or expired."
      }
    ]
  }
}

Required Parameters

string

required

Payment key for the recipient’s verified bank account. Obtained via Bridge flow.

integer

required

Amount to send in cents. Must be positive. Example: 25000 for $250.00

string

required

ISO 4217 currency code. Currently only "USD" is supported.

string

required

Description appearing on bank statements. Maximum 80 characters. Be clear and recognizable.

string

required

Date to process payment (YYYY-MM-DD). Can be today or future-dated up to 90 days.

object

required

Device information for compliance tracking.

Show Device object

string

required

IP address when payout was authorized. Use "0.0.0.0" for server-initiated payouts.

string

required

Your unique identifier for this payout. Must be unique across all payouts. Used for idempotency.

Optional Parameters

object

Processing configuration options.

Show Config object

string

For testing only. Simulates specific outcomes in sandbox environment.

object

Custom key-value pairs. Maximum 20 keys, 40 characters per key/value.

Payment Status Lifecycle

Payouts progress through the same statuses as charges:

Status	Description	Can Modify?
`created`	Initial state, awaiting verification	✅ Yes
`scheduled`	Verified and queued for processing	✅ Yes
`pending`	Sent to payment network	❌ No
`paid`	Successfully completed	❌ No
`failed`	Declined before completion	❌ Terminal
`reversed`	Returned after completion	❌ Terminal
`cancelled`	Stopped before network submission	❌ Terminal
`on_hold`	Paused for review	⚠️ Depends

Critical: Once a payout reaches pending status, it has been submitted to the payment network and CANNOT be stopped, held, or cancelled.

Important Distinction: Unlike charges which pull funds, payouts require Straddle to withdraw funds from your account BEFORE sending them to recipients. This affects funding event timing.

Status Details

Every status change includes detailed information:

"status_details": {
  "message": "Payout failed - recipient refused the payment",
  "reason": "payout_refused",
  "source": "bank_decline",
  "code": "R23",
  "changed_at": "2024-10-16T14:30:00Z"
}

Payout-Specific Failure Reasons

Reason	Description	Source
`payout_refused`	Recipient declined the credit	`bank_decline`
`invalid_routing`	Routing number doesn’t accept credits	`bank_decline`
`frozen_bank_account`	Recipient account frozen	`bank_decline`
`risk_review`	AML/compliance review required	`watchtower`
`amount_too_large`	Exceeds payout limits	`system`

For complete status details, see Payment Statuses Guide.

Common Operations

Retrieve a Payout

curl -X GET https://sandbox.straddle.com/v1/payouts/{payout_id} \
  -H "Authorization: Bearer YOUR_API_KEY"

Update a Payout

Update payouts in created or scheduled status:

curl -X PUT https://sandbox.straddle.com/v1/payouts/{payout_id} \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": 30000,
    "description": "Updated payout amount"
  }'

Cancel a Payout

Cancel payouts before they reach pending status:

curl -X POST https://sandbox.straddle.com/v1/payouts/{payout_id}/cancel \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "reason": "Seller verification failed"
  }'

Place on Hold

Pause a payout for review (only in created or scheduled status):

curl -X POST https://sandbox.straddle.com/v1/payouts/{payout_id}/hold \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "reason": "Awaiting seller verification"
  }'

Release a Hold

Release user-initiated holds only:

curl -X POST https://sandbox.straddle.com/v1/payouts/{payout_id}/release \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "reason": "Seller verified"
  }'

Compliance holds (watchtower source) cannot be released via API. They require manual review in the dashboard.

Resubmit a Payout

Re-attempt a payout using the resubmit endpoint. This creates a new transaction that inherits the original payment’s details.

curl -X POST https://api.straddle.com/v1/payouts/{id}/resubmit \
     -H "Authorization: Bearer YOUR_SECRET_KEY" \
     -H "Content-Type: application/json" \
     -d '{
       "payment_date": "2026-03-01",
       "description": "Retry the payout",
       "external_id": "my-custom-external-id"
     }'

Payment Rails

Straddle automatically selects the optimal payment rail based on amount, timing, and availability:

Rail	Speed	Availability	Typical Use
ACH	1 business days	Business days	Standard payouts
Same Day ACH	Same business day	Business days	Standard payouts
RTP	Seconds	24/7/365	Instant payouts
FedNow	Seconds	24/7/365	Instant payouts

Straddle automatically optimizes rail selection. You don’t need to specify which rail to use - we’ll choose the fastest, most cost-effective option available.

Handling Failures

When payouts fail, check status_details for specific information:

if (payout.status === 'failed') {
  switch(payout.status_details.reason) {
    case 'payout_refused':
      // Recipient declined - investigate
      break;
    case 'invalid_bank_account':
      // Request updated bank details
      break;
    case 'frozen_bank_account':
      // Cannot retry - handle specially
      break;
    case 'risk_review':
      // Compliance review needed
      break;
    case 'amount_too_large':
      // Split into smaller payouts
      break;
  }
}

Testing in Sandbox

Use sandbox_outcome in the config to simulate scenarios:

{
  "paykey": "pk_test456",
  "amount": 15000,
  "config": {
    "sandbox_outcome": "paid"  // or "failed_closed_bank_account", etc.
  }
  // ... other required fields
}

Common test scenarios:

"paid" - Successful payout
"failed_closed_bank_account" - Account closed
"on_hold_daily_limit" - Compliance hold
"failed_payout_refused" - Recipient refusal

Webhooks

Set up webhooks to receive real-time payout updates:

app.post('/webhooks/straddle', (req, res) => {
  const event = req.body;
  
  switch(event.type) {
    case 'payout.created':
      // New payout created
      break;
    case 'payout.paid':
      // Payout successful - update records
      break;
    case 'payout.failed':
      // Check status_details.reason
      break;
    case 'payout.on_hold':
      // Check if compliance hold
      if (event.data.status_details.source === 'watchtower') {
        // Notify compliance team
      }
      break;
  }
  
  res.status(200).send('OK');
});

Best Practices

Use Idempotency

Always include a unique external_id to prevent duplicate payouts

Verify Recipients

Confirm recipient details before large payouts

Monitor Limits

Track daily/monthly payout volumes against limits

Handle Returns

Implement workflows for rare payout returns

Next Steps

API Reference

Complete payout endpoint documentation

Payment Statuses

Detailed status flows and return codes

Charges Guide

Learn about collecting payments

Funding Events

Understand settlement and money movement

Charges: collect ACH bank payments

Payment status and lifecycle reference

⌘I

Get Started

Identity

Bridge

Payments

Embed

Resources

Payouts: send funds to bank accounts

What You’ll Learn

The Payout Object

Core Fields

Creating a Payout

Required Parameters

Optional Parameters

Payment Status Lifecycle

Status Details

Payout-Specific Failure Reasons

Common Operations

Retrieve a Payout

Update a Payout

Cancel a Payout

Place on Hold

Release a Hold

Resubmit a Payout

Payment Rails

Handling Failures

Testing in Sandbox

Webhooks

Best Practices

Use Idempotency

Verify Recipients

Monitor Limits

Handle Returns

Next Steps

API Reference

Payment Statuses

Charges Guide

Funding Events

​What You’ll Learn

​The Payout Object

​Core Fields

​Creating a Payout

​Required Parameters

​Optional Parameters

​Payment Status Lifecycle

​Status Details

​Payout-Specific Failure Reasons

​Common Operations

​Retrieve a Payout

​Update a Payout

​Cancel a Payout

​Place on Hold

​Release a Hold

​Resubmit a Payout

​Payment Rails

​Handling Failures

​Testing in Sandbox

​Webhooks

​Best Practices

Use Idempotency

Verify Recipients

Monitor Limits

Handle Returns

​Next Steps

API Reference

Payment Statuses

Charges Guide

Funding Events

What You’ll Learn

The Payout Object

Core Fields

Creating a Payout

Required Parameters

Optional Parameters

Payment Status Lifecycle

Status Details

Payout-Specific Failure Reasons

Common Operations

Retrieve a Payout

Update a Payout

Cancel a Payout

Place on Hold

Release a Hold

Resubmit a Payout

Payment Rails

Handling Failures

Testing in Sandbox

Webhooks

Best Practices

Next Steps