How Does a Payment Distribution by Wire Transfer Work?

October 09, 2024

Follow this step-by-step guide to learn how payments distribution by wire transfer works on the internet.

The funds or money disbursement by wire transfer is a service that simplifies financial management. With this, you can make payments from a single bank account to your users’ accounts.

The Payment Process

Stages of the Payment Process

The process of funds disbursement usually has 5 Stages:

Add Funds to your Kushki Payout account

Before the distribution process, you must check your merchant balance in Kushki. If you do not have funds, we recommend you add funds to your Payout account, so that your payment distribution goes smoothly.

1. Data request

At this step the bank account details or if you had configured Transfiya (product in Beta phase), the cell phone number of the user who will receive the money are collected. These are sent to Kushki to be validated and processed.

2. Verification of funds

Kushki receives the data you sent and validates that your merchant has sufficient funds to process the dispersal. The balance will be immediately deducted from your Kushki dispersion account.

3. Authorization

Once we have verified that you have sufficient funds in your dispersion account, we provide a transaction reference. At this stage, the dispersal process is initiated and will be credited to the user’s bank account in the next few hours.

4. Delivery of funds

In case you have made the transfer through Transfiya, might occur the following scenarios:

• Transfer by bank account number: the amount is sent in real time to the account, as long as the user has previously received at least one transfer through Transfiya in this account.
• Transfer by cell phone number: the user has 12 hours to authorize the transaction in any of the [available banks](https ://www.transfiya.com.co/home). Once authorized, the amount is immediately transferred to the users’ account. This product is in Beta phase

For transfers that are made by a different processor, all the transactions that you have initiated during the day will be sent, as a whole, to the bank to distribute the funds to the users’ accounts.

Notification to the merchant

The bank will notify us of the result of each transaction and we will notify you immediately.

Notification to the user

This step is optional, but very useful. Since we have notified you of the transaction result, you can share it with your users.