Guaranteed Push-to-Card Payouts with Fund Blocking
Promise a payout, block the funds immediately, and release to a card in seconds when conditions are met. Recipients see guarantees upfront; merchants keep fraud protection; processors monetize trust.
Who Participates in a Push-to-Card PayNote?
Merchant, processor, and cardholder coordinate through a shared PayNote—funds are reserved upfront and released instantly when all agree conditions are satisfied.
Payer
Merchant / platform / employer
Creates the PayNote, authorizes the payout amount, and allows funds to be blocked until release.
Payee
Cardholder
Sees the guaranteed payout amount and timing before funds land on their card.
Guarantor
Card processor / PSP
Blocks funds, enforces payout conditions, and executes the push-to-card transaction instantly.
Currency
Fiat (USD, EUR, GBP, etc.)
Uses Visa Direct, Mastercard Send, or similar instant card rails operating in national currencies.
Guaranteed Visibility, Instant Execution
Block funds upfront, give recipients confidence immediately, and still preserve fraud checks or dispute windows before releasing to card.
Visible Guarantees
Recipients see their payout promise immediately—even when release waits on reviews or dispute windows.
Upfront Fund Blocking
Processor reserves merchant funds the moment the PayNote is created, ensuring payouts cannot be missed.
Instant Release When Ready
Once conditions are met, funds arrive on the card in seconds via push-to-card rails; no ACH wait.
How the Three Parties Interact
Merchant promises payout, processor blocks funds and shows guarantees, recipient waits or triggers release—everyone shares the same timeline.
Why this matters:
- Gig workers and freelancers see proof they’ll be paid before the payout hits.
- Merchants maintain dispute windows or quality reviews without eroding trust.
- Processors monetize the trust service while staying the neutral arbiter.
Merchant / Platform
- Creates the PayNote and authorizes fund blocking for each payout.
- Defines conditions (dispute windows, quality checks, fraud reviews) before release.
- Tracks payout status with the recipient in a shared timeline.
Card Processor / PSP
- Blocks funds in the merchant account immediately and charges for the guarantee.
- Displays payout guarantee status to the recipient through partner interfaces.
- Executes push-to-card once conditions are satisfied or timers expire.
Cardholder
- Sees “Guaranteed payout” messaging with amount, timing, and conditions.
- Knows exactly when funds will release and can trigger if permitted.
- Receives instant Visa Direct / Mastercard Send payout upon release.
For processors, this creates a premium guarantee product: block funds now, release later, and provide transparency throughout.
Example Use Cases
Gig Economy with Dispute Window
Block $127 immediately after a driver’s shift; show “Guaranteed payout in 24h”. Release instantly when the window closes.
Freelance Work Quality Review
Reserve $2,000 at project submission. Freelancer sees guarantee; client reviews deliverables before issuing instant payout.
Insurance Claim Verification Period
Block $5,000 upon approval, show “Guaranteed payout in 3 days” while fraud checks run. Release instantly once cleared.
Marketplace Seller + Buyer Protection
Hold $450 for a seller, visible as guaranteed payout. Buyer return window closes—processor pushes funds to seller instantly.
Instant Refund with Verification
Block $89 the moment a return ships. Customer sees guarantee; merchant verifies condition; refund hits card instantly.
Rebate & Rewards Processing
Reserve $50 rebate, display guarantee with 7-day timer, then execute push-to-card automatically when processing completes.
Value Proposition
For Card Processors
New Premium Revenue Stream
- Charge 0.5–1% fund blocking fees on top of instant payout pricing.
- Monetize guaranteed trust services between merchants and recipients.
- Earn per-PayNote fees for visibility and condition tracking.
Competitive Differentiation
- Offer the only push-to-card service with visible guarantees.
- Win platforms that need trust for gig, insurance, or refunds.
- Position as the neutral enforcer both parties rely on.
Reduced Support Costs
- Cut “where’s my money?” tickets by surfacing guarantee status.
- Automate release when conditions are met, eliminating manual interventions.
- Share timeline evidence to resolve disputes faster.
Better Risk Management
- Validate conditions before releasing funds.
- Maintain fraud checks while keeping recipient confidence.
- Gain richer data on payout timing, recipients, and disputes.
For Merchants / Platforms
Build Trust Without Sacrificing Protection
- Show workers guaranteed payouts immediately.
- Keep dispute or quality review windows intact.
- Reduce anxious support outreach around payout timing.
Enable Conditional Payouts
- Block funds when work is submitted but hold release until validation.
- Share real-time status with recipients to avoid confusion.
- Document every decision in the shared PayNote timeline.
Predictable Operations
- Know exactly when cash leaves your account (at block time).
- Budget for premium guarantee fees against saved support cost.
- Improve auditability of every payout and condition check.
Fraud Protection with Satisfaction
- Maintain review periods without eroding recipient trust.
- Cancel with documented evidence if fraud detected.
- Keep recipients informed even when investigations run.
For Cardholders
See Guarantees Immediately
- View “Guaranteed payout of $127 – releases in 24h” right away.
- Understand timing and conditions without chasing support.
- Trust the processor guarantee instead of merchant promises.
Instant Access When Released
- Receive funds on card in seconds once conditions clear.
- Avoid ACH delays or manual payouts after approval.
- Trigger payout manually if PayNote allows recipient control.
Balanced Protection
- Know funds are reserved for you, yet legitimate fraud checks stay intact.
- Share evidence if release needs to be accelerated or contested.
- Benefit from transparent, evidence-based dispute handling.
Card Processor Operations & Risk Controls
What You See:
PayNotes add fund blocking and visibility on top of standard push-to-card rails:
- Merchant issues PayNote promising payout to a cardholder.
- You reserve funds from the merchant account immediately.
- Recipient sees a guaranteed payout status, even before funds arrive.
- Once conditions clear, you execute Visa Direct / Mastercard Send and release the block.
Fund Blocking Mechanics:
- Maintain blocked funds ledgers per merchant and PayNote.
- Expose guarantee status via APIs, web portals, or partner apps.
- Track condition states and evidence leading to release or cancellation.
- Handle block expirations and refunds when PayNotes are cancelled.
Validation Requirements:
- Confirm the merchant has sufficient available funds before blocking.
- Verify recipient card details to ensure push-to-card success.
- Evaluate payout amounts against merchant history to catch anomalies.
- Record the rules/conditions that will trigger release or cancellation.
Risk Controls:
- Run velocity and pattern checks on merchant payouts.
- Monitor cardholder destinations for unusual activity.
- Require evidence when merchants request cancellations of blocked payouts.
- Keep thorough logs so disputes can be resolved without chargebacks.
Premium Service Pricing:
- Charge fund blocking fees (0.5–1% of payout amount).
- Add premiums over standard instant payout rates for trust visibility.
- Bill per PayNote creation and per payout execution.
- Offer tiers for guaranteed SLA or enhanced evidence tooling.
What Changes Operationally:
You now manage blocked balances, guarantee visibility, and condition validation. Push-to-card execution stays the same; the PayNote coordinates when release happens and keeps all parties informed.
FAQ for Card Processor Decision Makers
Do we need to change our instant payout infrastructure?
No. Visa Direct and Mastercard Send integrations stay the same. PayNotes add fund blocking, visibility, and condition validation before you call the existing payout APIs.
What if the merchant lacks sufficient funds to block?
Reject the PayNote creation. The guarantee is only issued if funds are available. Recipients only see guarantees after you have blocked the amount.
Can merchants cancel a payout after blocking funds?
Yes—with evidence. PayNotes capture cancellation requests and require proof. You decide based on policy; the timeline records the outcome for transparency.
How should we price versus standard Visa Direct?
Charge 50–100% more than standard instant payout fees for guaranteed services. Merchants accept the premium because trust and reduced support costs pay for it.
Are we locked into a vendor?
No. PayNotes are an open protocol. Start with managed infrastructure, then migrate to self-hosted processing while keeping all existing documents compatible.