To pay affiliates, approve commissions after a hold period, pay on a fixed schedule with stated net terms, and send money through the method each partner chose: PayPal, Payoneer, bank transfer or crypto. Collect tax forms such as the W-9 or W-8BEN and verify identity before the first payout, set a minimum threshold, and automate approvals and payout files so payments go out on time.
Paying on time is the cheapest retention tool you have. Affiliates talk to each other, and late or unexplained payments end partnerships faster than a low rate.
Below is the full payout workflow, from approval to reconciliation, with provider fees as of October 2026. If your affiliate tracking software handles approvals and payout files, most of it can be automated. If you are still setting up the program itself, start with how to start an affiliate program.
Not tax or legal advice. Tax, sanctions and payment rules depend on where you and your affiliates are based. Confirm your obligations with an accountant or lawyer.
Payout schedules and net terms
Every payout passes through four timers. Publish each one, because affiliates add them up to work out when cash actually arrives:
Days to cash = hold period + billing period + net terms + transfer time
- Hold period: commissions stay pending while refunds, chargebacks and fraud checks surface.
- Billing period: approved commissions accumulate for a week, two weeks or a month.
- Net terms: the number of days after the period closes before you send the payment.
- Transfer time: how long the payment method takes to deliver.
Example with invented round numbers: a 30-day hold, a monthly billing period and Net 15 terms mean a conversion can wait up to about 75 days for payment. A 14-day hold with weekly periods and Net 7 brings the oldest conversion in a batch down to roughly four weeks.
| Schedule | Works for | Trade-offs |
|---|---|---|
| Monthly, Net 15–30 | Content and SEO partners, most new programs | Simple to run; slow for affiliates who buy traffic |
| Twice monthly | Growing programs with steady volume | Twice the processing work and fees |
| Weekly | Media buyers, proven partners | Highest admin and fee load; needs reliable fraud checks |
A common pattern is to start every partner on monthly terms and move proven partners to weekly after a clean track record. Our list of affiliate programs that pay weekly shows how established networks structure that step.
Payment methods compared (October 2026)
Offer two or three methods that cover your affiliates' countries, and state who pays the transfer fees. The fees below come from each provider's public pricing page as of October 2026 and change regularly.
| Method | Sender fees (published) | Recipient side | Best for |
|---|---|---|---|
| PayPal Payouts | 2% per payout, capped at $1 (US) or $20 (international); flat $0.25 per US payout via the Payouts API | Varies by recipient country and account | Small and medium payouts to individuals |
| Payoneer | Not published; Payoneer says fees for payments from companies vary by platform | Withdrawal to a local bank in local currency $1.50; to a non-local currency 1.2%–4% | International affiliates who withdraw in local currency |
| Bank transfer (ACH, SEPA, SWIFT wire) | Set by your bank | Intermediary and receiving-bank fees may apply on international wires | Large payouts, business affiliates |
| Crypto (USDT, USDC) | Network and platform withdrawal fees, which vary by chain and over time | Must hold a wallet on the same network | Affiliates in markets with limited banking, crypto-native partners |
PayPal
PayPal's US fee page lists Payouts at 2% of the payout amount, capped at $1.00 for US recipients and $20.00 for international ones, with a flat $0.25 for US payouts sent through the Payouts API. Batch payouts make PayPal easy to automate. Check that each affiliate's PayPal account name matches the name on their tax form.
Payoneer
Payoneer's pricing page lists withdrawals to a local bank account in local currency at $1.50, withdrawals to a non-local currency at 1.2% to 4%, and an annual account fee of $29.95 that applies only if an account receives less than $6,000 in 12 consecutive months. Payoneer notes that fees for receiving payments from companies vary by platform and that the fees shown in each account apply.
Bank transfer and wire
Domestic transfers such as ACH in the US or SEPA in the eurozone are cheap and reliable for business affiliates. International SWIFT wires can lose part of the amount to intermediary banks, so set a higher minimum for wires and say whether the affiliate or you absorb the fees. Collect IBAN or account details through a secure form, never by email.
Crypto and stablecoins (USDT, USDC)
Stablecoin payouts suit affiliates where banking is slow or expensive, but the network matters. Tether issues USDT on many chains, including Ethereum, Tron, Solana and TON, according to its supported protocols list. A transfer sent on a network the recipient's wallet doesn't support may be lost. Withdrawal fees differ by asset and network and change over time; Kraken's withdrawal fee page, for example, notes that fees may change and the final fee is shown when you confirm.
Confirm each wallet address and network in writing before the first payment, send a small test transfer to new wallets, and record the transaction hash for every payout. Crypto payouts are restricted in some jurisdictions, and the same KYC and sanctions checks apply as for fiat.
Minimum payout thresholds
A threshold stops small balances from being eaten by fees and admin. Balances below it roll over to the next period. Set it per method, because costs differ:
- PayPal: with a $1 cap on US payouts, even a $50 threshold keeps the fee at 2% or less.
- Payoneer: low thresholds work for affiliates who withdraw in their local currency.
- International wires: a higher threshold, because intermediary fees can take a fixed amount from each transfer.
- Crypto: high enough that network fees stay a small share of the payout.
Publish the threshold, the rollover rule and what happens to balances when a partner leaves or goes inactive.
Tax forms and KYC
Collect tax and identity details at sign-up or before the first payout, not when the first payment is due.
US tax forms
If you are a US business paying US affiliates, request Form W-9, which the affiliate uses to give you their taxpayer identification number. Commissions to independent affiliates are generally reported as nonemployee compensation on Form 1099-NEC; the IRS instructions for Forms 1099-MISC and 1099-NEC set the threshold at $2,000 for payments in tax years beginning after 2025, adjustable for inflation from 2027.
Foreign individuals give the payer Form W-8BEN; foreign entities use Form W-8BEN-E. These certify foreign status for US withholding purposes. Non-US brands have their own reporting rules, and business affiliates may need to send VAT-compliant invoices, so ask your accountant what to collect.
KYC and sanctions screening
Verify that each affiliate is who they claim to be and that the payout account belongs to them:
- Identity: legal name, address, country and, for companies, registration details.
- Account match: the name on the PayPal, Payoneer or bank account matches the affiliate or their company.
- Sanctions: screen names and countries against sanctions lists. OFAC states that all US persons must comply with its sanctions, and that non-US persons may not cause US persons to violate them.
- Duplicates: the same payout account or tax ID on several affiliate accounts is a classic sign of self-referral or multi-accounting.
Holds, reversals and clawbacks
The hold period exists so you only pay for customers who stay. Set it to cover your refund window, and in card-heavy verticals allow time for early chargebacks. Conversions reversed during the hold never reach a payout.
Some reversals arrive after payment. Your agreement should allow a commission reversal after payout, recovered by deducting it from future commissions rather than asking for money back. Our affiliate agreement template includes wording for holds, reversals and set-off.
Explain every reversal at conversion level: order ID, date and reason. Unexplained rejections clustered before payday are what affiliates remember, even when every one of them is justified.
Automating affiliate payouts
Manual payouts work for a handful of partners. Beyond that, automate the steps that don't need judgment:
- Approval rules: auto-approve conversions after the hold period, and route high-value or high-risk conversions to manual review.
- Payout run: on a fixed day, total approved commissions per affiliate, apply thresholds and deduct reversals.
- Payment file: export a batch in the format your payment provider accepts, or send it through the provider's payouts API.
- Reconciliation: match every provider transaction ID to the payout record and mark it paid.
- Notifications: send each affiliate a statement listing the conversions, adjustments and the amount sent.
In MassPartner, conversions can be auto-approved, held for manual review or approved after a set number of days, and payouts are tracked with export files for your payment run. The Professional plan adds automated payouts.
Pay affiliates on time with MassPartner
MassPartner combines tracking, conversion approval, commission holds and payout tracking in one dashboard, so the amount you pay matches the conversions you approved. Every plan includes a 7-day free trial; see MassPartner pricing.
FAQ
How often should I pay affiliates?
Monthly is a common starting point for new programs. Move proven partners, especially media buyers who fund their own traffic, to twice-monthly or weekly payments once their reversal rates are low.
What minimum payout threshold should I set?
Set it so the transfer fee is a small share of the payout for each method. As of October 2026, PayPal caps US payout fees at $1, so a low threshold works there, while international wires need a higher one.
Do I need a W-9 from every affiliate?
US businesses typically request a W-9 from US affiliates to collect their taxpayer identification number, and a W-8BEN or W-8BEN-E from foreign affiliates. Your accountant can confirm which forms and filings apply to you.
Can I pay affiliates in crypto?
Yes, if it is legal where you and the affiliate operate; stablecoins such as USDT or USDC avoid price swings between approval and payment. Confirm the wallet address and network in writing, apply the same KYC and sanctions checks as for fiat, and keep the transaction hash for every payout.
What happens if a customer refunds after the affiliate was paid?
If your agreement allows it, the commission is reversed and deducted from the affiliate's next payout. Set the hold period long enough that most refunds surface before payment.