> ## Documentation Index
> Fetch the complete documentation index at: https://docs.jupico.com/llms.txt
> Use this file to discover all available pages before exploring further.

# API Payouts: Send On-Demand Transfers to Merchants

> Use Jupico's Dynamic Payouts API to send funds to merchants on demand. Submit payout instructions, check balances, and void pending transfers.

API Payouts — also called Dynamic Payouts — give your platform full control over when and how funds are transferred to merchants. Instead of waiting for a predefined schedule, you initiate each payout through the Dynamic Payouts API at exactly the moment your business logic requires, whether that's immediately after an event, on a custom cadence, or as a one-time disbursement.

## Create a Payout Instruction

<Steps>
  <Step title="Add a Bank Account to the Merchant">
    Ensure the merchant is fully provisioned on your platform, then add their bank account so Jupico has a valid destination for the transfer.
  </Step>

  <Step title="Run a Transaction">
    Initiate a transaction using the merchant's ID to generate a balance that can be paid out.

    <Note>
      In the sandbox, wait approximately **2 minutes** after the transaction before proceeding — sandbox processing is accelerated but not instant. In production, transactions settle in end-of-day batches with next-day settlement.
    </Note>
  </Step>

  <Step title="Check the Merchant's Available Balance">
    Query the merchant's available balance before submitting a payout instruction. Confirm there are sufficient funds to cover the payout amount you intend to send.
  </Step>

  <Step title="Submit Payout Instructions">
    Submit the payout details — including how and where the funds should be transferred — using the [Dynamic Payouts API](/api-reference/payouts/create-a-payout-instruction).
  </Step>

  <Step title="Await Underwriting Approval">
    After submission, wait for underwriting approval to confirm the payout is authorized before it is processed.
  </Step>

  <Step title="Verify Payout Status">
    Check the status of the payout to confirm whether it completed successfully or failed, and handle each outcome accordingly in your integration.
  </Step>
</Steps>

## Voiding Payout Instructions

If you need to cancel a payout after submitting it, you can void the instruction — but only while it has not yet been processed.

<Warning>
  You can only void a payout instruction that has **not** been processed. Once processing begins, the instruction cannot be voided.
</Warning>

To [void an existing payout instruction](/api-reference/payouts/void-a-payout-instruction), include the `payoutId` in your void request.

## Sandbox Testing

<Info>
  Use the **`jpt-sim-mt-1`** (Dynamic mode) submerchant when testing dynamic payouts in the sandbox environment. This test submerchant is pre-configured to support the full API payout flow.
</Info>

## Benefits of API Payouts

* **Greater control:** Decide exactly when each payout is initiated, independent of any fixed schedule.
* **One-time and event-triggered scenarios:** Accommodate unique disbursements that don't fit a recurring pattern.
* **Improved cash flow flexibility:** Serve merchants with variable payout needs without locking them into a fixed interval.