Payouts concept

Payouts refer to sending cryptocurrency and token transactions from either your fiat or cryptocurrency accounts on the Txn platform to external wallets and recipients. Payouts typically include the amount, currency, payment network, and receiving wallet address of a payout recipient. Txn processes each payout request immediately to broadcast a cryptocurrency or token transaction on the relevant network as soon as possible, meaning we do not batch multiple payout requests to process them at once.

When sending payout requests, merchants need to consider the fees deducted from the payout amount before a transaction gets broadcast - the platform fees and network fees.

• The payout fee is the platform fee that the Txn platform charges for providing services

• The network fee is a flat fee taken by the Txn platform to cover blockchain fees. Txn doesn't control the blockchain fees required by miners; hence, we can only update the network fee settings on our side in a timely manner to keep it around the average blockchain fee necessary for including transactions in the next block. Please expect network fees to update frequently over time without prior notification

The formula below is used to calculate the cryptocurrency or token transaction amount to be sent to the recipient's wallet.

$$payAmount =(payoutAmount - payoutFee) / exchangeRate - networkFee$$

• payAmount - This is the amount of cryptocurrency or token being sent to the recipient's wallet address

• payoutAmount - This is the payout amount supplied in the Create Payout call

• payoutFee - This is the platform fee that the Txn platform charges for providing services

• exchangeRate - This is the exchange rate provided by the Txn platform in cases where the source account currency doesn't match the cryptocurrency or token being sent

• networkFee - This is the network fee that the Txn platform charges for covering the blockchain fee

Another thing to consider is the minimum and maximum limits for payout amounts. You can refer to Payout Limitations.

Upon receiving a payout request, the Txn platform automatically validates the receiving wallet address format and also evaluates its risk level to ensure a payout will not be sent to a wallet connected to illegal activities or involves any sanctions-related risks for the Txn merchant. In either case, the payout request is rejected by the Txn platform straight away.

To make the customer experience even smoother for your end-users, we recommend using the Validate Address endpoint before creating crypto payouts.

Quick example:

1. Collect a wallet address from your customer

2. Make a call to validate the wallet address upfront to ensure your Create Payout call will pass without errors

3. Make a call to create a payout