Why is Adyen implementing a new payout model?
With Sales Day Payout, your payouts and reports will be based on day totals. This simplifies the reconciliation process and it allows for predictable cash flows.
How does my current payout model work?
Adyen settles on a pass through basis, so you receive funds once Adyen has been paid by the card schemes and payment methods. These card schemes and payment methods use different timelines for settling funds of a transaction. Settlement timelines can range from 1 business day up to several weeks.
This way of payout is called ‘Pass Through Payout’. To illustrate this, please see the example below. In this example, the sales of January 1st are paid in multiple payable batches over the subsequent days January 2nd to January 7th.
This payout model operates with minimal friction in its payout process; Adyen’s payout follows directly upon receipt from the card scheme and/or payment method. As sales days are paid in multiple instances, over multiple payable batches, the reconciliation process usually requires automation.
How does the Sales Day Payout model work?
Payouts are simplified with a full sales day paid out in one go, no matter if Adyen already received all funds from the card schemes and payment method. The payout is always a fixed amount of days after the sales day, usually 2 or 3 business days after the sales day. This depends on your processing currencies and the payment methods that are used by your shoppers. Once the payout has been initiated, you will be provided with a settlement report (which contains only transactions of the sales day). To illustrate the payout process, please see the example below. In this example, the sales of January 1st are paid at once on January 3rd.
With this payout model, payouts and reports will be based on day totals. This simplifies the reconciliation process and it allows for predictable cash flows.
What will my payout delay be with the new payout model?
The payout delay is set per merchant account and it will be constructed as follows:
Payout is done 2 business days after sales day (T+2)
(e.g. Monday is paid on Wednesday)
if at least 80% of the transaction volume on a single merchant account is processed in (a combination of) AUD, CAD, EUR, GBP, NZD, RON, SEK or USD and these transactions are acquired in the country/region of the applicable currency.
Payout is done 3 business days after sales day (T+3)
(e.g. Monday is paid on Thursday)
in all other cases except for the LATAM and Africa regions and currency TRY.
Please note that Adyen, in an exceptional case, can delay your payout (e.g. from T+2 to T+3 or from T+3 to T+4, etc) when you process a relative high amount of payment methods with a high settlement delay. In other words: If you only process Amex with a settlement delay of T+7, then we will settle you also at T+7.
Why is my payout delay set at T+3?
When setting the payout delay, Adyen has taken the average settlement timeline that the card schemes and/or payment methods are using for that applicable currency. If your payout delay is set at T+3, the average settlement timeline for your transactions is ± 3 business days.
Can I define the Sales Day depending on my operating hours?
By default, the sales day is always defined from midnight-to-midnight in the merchant account’s local timezone. However, for some cases such as hotels, bars, restaurants, the sales day may start and end after midnight (2 AM for example). For such cases, we can adjust the closing time to 2 AM, so that all sales from 2 AM up until 1:59:59 AM will be settled as a whole (in one payout). In order to specify the closing time of your batch, please send a request via email@example.com. Delayed closing times are possible up until 6 AM.
How often will I get paid with the new payout model?
With the rollout of Sales Day payout, your payout frequency may be changed. Please have a look at the following table to see the payout frequency you will have with Sales Day Payout.
If your payout frequency has been changed and if you would like to be on another schedule, please contact Adyen Support.
Will my deposit be affected due to my new payout schedule?
No. The logic of the deposit has been modified to accept for a change in the payout schedule.
When is the switch taking place?
You should receive an email with the date of when your account will be switched to Sales Day Payout. All accounts are expected to be switched in the course of November 2019.
Do I need to do anything before the switch?
No. The implementation and the roll out of Sales Day Payout is done automatically by Adyen. You will see the following new journal types as part of this switch:
What will change after the switch?
All transactions that are captured throughout a sales day will be settled on one single (business) day.
What will happen with my transactions before the switch?
All transactions that were captured before the switch will be settled via the pass through flow. This could result in a lower expected payout one day before the first day of payout with Sales Day payout and a higher payout on the first days of payout with Sales Day Payout. When all the transactions that were captured before the switch are successfully settled, there will be a one-on-one relation between the sales day and the payout.
What will my payouts look like after the switch?
For the first couple of days there will be a mix of Adyen’s old way of paying out (pass-through) and Sales Day Payout in the payouts (and reports) as the transactions need to clean out. To get a better idea of how your payouts would look like with Sales Day Payout, please see the following example, where payout is set at T+2:
What will my reports look like after the switch?
The following example shows what you can expect to see in your Settlement Detail Report:
How is a sales day determined?
A sales day with Sales Day Payout is always determined on a 24-hour time period. In order to make sure that the right 24-hour time period is being used to define a sales day, Adyen has set the time period from midnight to midnight in the time zone that is linked to your merchant account’s country and state (if applicable). After the switch has been implemented, you can see the configured setup on the payout model page. In order to go to this page, go to the header “Account” and select “Payout model” in the Adyen Customer Area
How do I activate Sales Day Payout before the switch?
If you prefer to switch to Sales Day Payout earlier than your switch date, go to the header “Account” and select “Payout model” in the Adyen Customer Area.
What if I would like to stay on my old payout model (pass-through)?
If you prefer to remain on the old payout model (pass through), please contact Adyen Support before the activation date stated in your email.