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Every payout moves through a defined set of states from the moment it is created to the point where it is paid out (or returned). The exact path depends on when the payout is funded and when it is screened. This page walks through the three common flows and explains what each state means.

Flow 1 — Funds Available Before Creating the Payout

In the simplest flow, the source funds are already available in your balance before you create the payout. The payout is created, screened, and then processed for settlement without waiting for funding.
Simple payout flow — funds available before creating the payout

Flow 2 — Funding After Creating the Payout

Here the payout is created before the funds are available. The payout waits in a funding state until your balance is funded — automatically via FIFO auto-funding if auto-funding is enabled, or via the Fund API. Once funded, the payout is screened and then processed.
Payout flow — funding done after creating the payout, then screened

Flow 3 — Screening Without Funding

In this flow the payout is created and screened first. Only after screening is the source of funds confirmed — by attaching a collect id that identifies where the funds come from, using the Confirm Payout API.
Payout flow — screening first, then source of funds confirmed via a collect id

What Each State Means

The states below describe where an individual payout is in its lifecycle. Not every payout passes through every state — the path taken depends on the flow above.

See Also

Funding a Payout After Creation

How auto-funding (FIFO) and the Fund API work.

Reversals

What happens when a payout is returned after settlement.

Payout Webhooks

Track payout state transitions via webhook events.