Fast, Global Mass Payments for

Mass payments, also known as mass payouts, batch payments, or bulk payments, are used by organisations to pay multiple recipients simultaneously in a single batch, regardless of the payee’s location, currency, or payment method.

Mass payment processing solutions like Tipalti help organisations save time, money, and resources by expediting the payment process. Payment information can be communicated for mass payouts either through a mass payments API or file upload.

Depending on a company’s infrastructure, batch payment processing solutions may need to be integrated with performance marketing systems to tie analytics to mass payments. Integrations with ERPs and accounting systems also facilitate payment reconciliation and reporting.

Tipalti’s global payout platform enhances the effectiveness of cross-border payments to 196 countries in 120+ currencies, using 50+ payment methods. It supports:

• Local bank transfers: SEPA payments (Europe), BACS payments (UK), EFT payments (Canada), and other bank transfers via local networks 
• Global ACH: also known as International ACH or IACH
• PayPal: payments to PayPal eWallets
• Wire transfer: SWIFT payments
• Prepaid debit cards: card issuance via Intercash 

Domestic payment methods in the US include ACH and paper cheques.

When international payees seek a flexible payment experience, a business may need multiple global payment methods. Efficient global payment processing means payees receive their money on time, in their local currency, using a preferred method. 

The best international payment methods depend on location and expectations. Each payment type has benefits and drawbacks that impact the satisfaction of payment recipients and the team’s workload.

Offering a wealth of global payment processing methods makes a payee’s comfort and security a priority. Mass payment platforms like Tipalti enable thousands of payments in minutes while the payer complies with tax and regulatory obligations.

There are many benefits to using a mass payment system for your business, including:

Cost Efficiency
Mass payment systems automate the entire process, reducing the time and effort needed for manually processing transactions individually.

Scalability
This type of software is designed to grow with your business. It can easily scale, handling increasing volumes of transactions, without added complexity.

Reduced Error
Automation improves accuracy and reduces the likelihood of errors that occur with the manual data entry process. 

Enhanced Security
Advanced data encryption methods work to protect sensitive financial information. Many systems also include fraud detection, safeguarding against unauthorised transactions.

Improved Cash Flow
Companies can schedule recurring payments, ensure timely disbursement, and drive better cash flow management. Real-time tracking and reporting also provide valuable insights into payment statuses and financial health.

Additional Benefits

• Mass payment systems facilitate global reach
• Competitive exchange rates and currency conversion
• Clear communication and easy access to mass payment details
• Intuitive dashboards simplify user training
• Efficient and reliable payment practises enhance reputation

Tipalti supports online marketplaces in various ways, including:

• Payee onboarding: payment method selection, banking and tax information collection and validation, custom branded experience.
• Fraud and risk controls: tax ID validation, OFAC, and sanctions list screening of all payees.
• Vendor payout processing: payment approval workflows, multiple payment methods, currency, and payment thresholds.
• Payment reconciliation: real-time reporting on past and pending transactions and audit trails of all transactions.
• Manageable infrastructure: updates for changing bank dynamics, ongoing diligence on tax and regulatory compliance issues, integration to ERP, accounting, and GL systems.

Automating online marketplace payments requires a comprehensive approach covering the entire payout engagement span.

The more freelancers you hire, the more complexity there is in freelancer payments. 

Tools like Tipalti centralise payment methods and terms (with minimum payment thresholds) in a single platform for easy contractor payouts. It also offers fee-splitting capabilities to incentivise contractors to use the most cost-effective payment methods.

Need to pay people abroad? Tipalti offers FX conversion payouts with highly competitive exchange rates.

Tipalti simplifies 1099 payment processing and digitally collects and validates W-9 and W-8 tax forms and TINs. You can generate 1099 and 1042-S preparation reports and simplify annual 1099 filing with Tipalti’s e-filing service or e-filing integrations.

Tipalti helps you provide a best-in-class affiliate payout experience with self-service affiliate payment and tax onboarding, verification of identity and fraud protection, choice of preferred payment methods and currencies, and complete visibility into payment statuses.

The best way to track the performance of your affiliate network is by using a performance marketing platform. These systems have affiliate marketing management capabilities that include partnership management, performance tracking, attribution, and analytics. 

Tipalti integrates with performance marketing systems (like Everflow, Cake, and Linktrust) to directly tie analytics and data to affiliate payments and to provide visibility into the performance-to-pay lifecycle.

In addition to affiliate payouts, you can sync onboarding data, such as bank and tax information, from publishers, affiliates, influencers, creators, or other affiliate network partners.

Systems like Tipalti offer PayPal mass payment. You can schedule bulk transactions using 50+ payment methods (including US ACH, global ACH, wire transfer, PayPal, paper cheque, and prepaid debit card) to 196 countries in 120 currencies.

Tipalti has a PayPal “mass transaction” (MT) license for PayPal mass pay or PayPal bulk payments. This removes restrictions around payment and funding limits, provides access to more favorable FX rates and payment speeds, and allows Tipalti customer service and support to troubleshoot any PayPal payment issues.

PayPal’s “account direction” (AD) model uses a payer’s existing PayPal account to facilitate PayPal mass payments.

Tipalti offers several advanced solutions, like FX hedging, to reduce foreign exchange risk. It gives you access to live foreign exchange rates and full transparency to track currency conversion statuses.

Avoid expensive, complex, and tedious bank conversion and transfer processes across multiple bank accounts by enabling self-service execution of transfers through Tipalti.

Get highly competitive rates for conversions that leverage Tipalti’s $60B+ of throughput on our platform annually and support for over 120 currencies.

Tipalti eliminates the need to maintain regional bank accounts solely for payouts and provides one central virtual account to manage payments across all subsidiaries, currencies, and payment methods.

An international wire transfer (cross-border or global payment) is a financial transaction involving multiple parties and is typically made through the SWIFT network.

International wire transfers require information like:

• Recipient’s contact and bank contact data
• Payment amount
• SWIFT or BIC code
• Recipient’s routing number
• Recipient’s account number and type

When banks don’t have an established relationship, intermediary banks play a crucial role. An intermediary bank is required when making global transfers between the originator and beneficiary banks.

What are the real-time costs involved in sending money overseas? Tipalti’s International Wire Transfer Fee Calculator can help you determine more accurate costs.

Global ACH is also referred to as an international Automated Clearing House (ACH) transfer. ACH handles transactions in the United States, while a global ACH involves a financial agency outside of America.

The US National Automated Clearing House Network (NACHA) typically manages an international ACH transfer in Europe. It’s the Single Euro Payments Area (SEPA) and consists of 35 participating countries (with specific exclusions).

Each payment rail differs in its transactions based on the payment type, speed, technology, or geographical location.

Payout APIs (aka payment APIs or accounting APIs) distribute mass payments to recipients such as contractors, freelancers, affiliates, publishers, and suppliers. 

The most common functions of payment APIs include:

• Mass payouts: Disburse payments to multiple payees or recipients at once. 
• Automatic payouts: Automate the payout process, ensuring that payments are disbursed on a predetermined schedule.
• Payment status: Provide businesses with real-time information on payment status, like the amount paid, date, and payment method.
• Payment reconciliation: Reconcile payments within your accounting system, ensuring accurate financial reporting.
• Compliance: Comply with regulatory requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML).

Setting up mass payments for your business involves a few steps to ensure accuracy, efficiency, and global security. 

Step #1) Determine Payment Needs
Identify the types of payments you need. These could include:

• Payroll
• Supplier payments
• Contractor payments
• Customer refunds

Step #2) Choose a Payment Method
Decide on the method you’ll use for mass payments. Will it be a bank transfer, like a global ACH? Another popular method is a digital payment platform like PayPal.

Step #3) Select a Payment Processor
Numerous platforms and systems are designed to accommodate mass payments. Tipalti is a prime example, offering global payment solutions with built-in compliance and support for 120+ currencies.

Step #4) Automate Mass Payments
To streamline the process and enhance workflows, a business should take full advantage of automation. Look for key features to:

• Upload batch files
• Facilitate API integration
• Schedule payments

Step #5) Ensure Security and Compliance
Security is critical when handling mass payments (especially on a global level). Look for a payment solution with data encryption, two-factor authentication, and global compliance (such as GDPR and PCI-DSS).

Step #6) Monitor and Reconcile Mass Payments
The final step is to ensure each payment is confirmed and completed. Reconcile bank statements with payment records, and use reporting tools to track transactions.