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As U.S. marketplaces grow, they are attracting increasing numbers of international sellers and freelancers. These sellers and freelancers earn an income from participating in the marketplace, and in the process, become payout recipients of the marketplace. Along with those new recipients often come payouts-related growing pains as the marketplace works to provide timely and convenient payouts options to accommodate the increasing number of payout recipients.

We’ve taken some of the most common recipient complaints and diagnosed the issue, then prescribed a solution. Does your business ever hear complaints like these?

Recipient Complaint: “Fees for transferring funds from a card to local bank account went from a reasonable amount to an exorbitant amount overnight, with no explanation!”

Diagnosis: This recipient is suffering from surprise fees, and the resulting inability to predict their business income. There’s nothing more challenging to an entrepreneur or freelancer than sudden shifts in anticipated income. With suppliers to pay and financial goals to meet, unreliable income can present a huge stumbling block to success.

Prescription: Local Bank Transfers from Transpay take the guesswork out of income for recipients. Unlike other payout providers, Transpay provides guaranteed FX rates with no hidden fees. Funds will be deposited to your recipient’s local bank account in the local currency, with no need for additional currency conversions.


Recipient Complaint: “The amount of time it takes to receive funds on to my card is too long and it’s impossible to keep waiting!”

Diagnosis: Time pressure on recipients is real, whether it’s pressure to deliver orders, complete freelance assignments, or pay their own suppliers – or even their personal bills. This recipient feels frustrated and reluctant to continue performing work, or selling goods, given that the funds are tied up in a lengthy payouts process. In a world where information flows instantaneously and freely on the Internet, the frustration of having funds tied up in a transaction can present an obstacle to recipient success.

Prescription: Because there are multiple steps for funds to be delivered to a prepaid card, this method can often result in delays. On the other hand, Local Bank Transfers are delivered in a few hours, compared with several days for e-wallets and bank wires to be delivered to a recipient’s local bank account.


Recipient Complaint: “Funds were transferred from the marketplace but never arrived on my pre-paid card.”

Diagnosis: This recipient is suffering from a case of uncertain transfer status. It can be a source of frustration for recipients to learn that the funds are on their way, then remain in the dark about the transfer status, only to discover after a long wait that the funds have never arrived.

Prescription: Because Transpay owns every banking relationship in our payout network, we can track the status of your payouts each step of the way. Our Local Bank Transfers are simple and transparent, with no surprises.


Recipient Complaint: “To withdraw my funds from my e-wallet, I need to make a trip to an ATM and what’s worse, there’s a high minimum withdrawal amount.”

Diagnosis: This recipient is experiencing all-too-common issues related to the inconvenience of getting funds out of an e-wallet cloud. E-wallets can cause not only inconvenience but also extra fees for the recipient. When designing a payouts offering, it’s essential to put yourself in your recipient’s shoes and consider the minimum withdrawal fees of an e-wallet from a local point of view, because even if the amount seems small in U.S. dollars, it might be a more significant amount in the local currency.

Prescription: Adding a Local Bank Transfer option to your payouts offering gives your recipients the opportunity to receive their funds direct to a bank account in their local currency, lowering the hassle factor, eliminating fees and relieving stress and hassle caused by pricey ATM withdrawals.


To learn more about how to avoid recipient payouts, check out this Payouts in Pictures feature


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