PayNearMe Disbursements provides gaming merchants, lenders, insurance companies, mortgage service providers, and others with a fast, convenient method for distributing funds to customers. Disbursing funds digitally removes the costs and time hassles of mailed paper checks and reduces the risk of fraud and lost mail. Currently, PayNearMe can distribute funds to debit cards, ACH bank accounts, and PayPal, and Venmo wallets. For debit card disbursements, PayNearMe uses the Visa and MasterCard debit networks to transfer funds to consumer bank accounts within 30 minutes or less with most transfers completing in under 5 minutes. For ACH disbursements, consumers can access funds within typical NACHA timelines, which is often the next business day. For PayPal or Venmo disbursements, PayNearMe uses a
merchant-controlled FBO account and PayPal’s API to transfer funds to consumer PayPal or Venmo accounts within minutes.

Configuring for Disbursements

PayNearMe’s highly customizable platform gives you the ability to configure your disbursement flow to meet the specific needs of your business. Some questions to consider include the following:

1. Do you want to disburse funds from the PayNearMe Business Portal, Embedded Client, via API, or a combination of the two (e.g., stage the disbursement via API then approve and make payment via the Business Portal)? Options include the following:

   Disbursement Method	Supported Payment Methods	Development Effort	Notes
   Business Portal	Debit Card ACH	N/A	Turnkey solution that’s quick and easy to set up No PCI compliance requirements
   Embedded Client	Debit Card ACH PayPal Venmo (Requires a prior payment/deposit)	Moderate	Reduced PCI scope and fraud liability for merchants Requires as few as one API call Gives merchants the ability to control the UI/UX and branding of the client for seamless transitions
   API	Debit Card ACH PayPal Venmo	Full	Requires verified PCI-DSS compliance Allows you to fully control your UI



2. How do you want to collect payment method information? Agents can collect debit card or bank account information within the PayNearMe Business Portal or validated consumers can enter their own payment method information via an emailed or texted Smart Link.


3. Do you want to require supervisor/admin approval prior to completing the disbursement?


4. What daily and lifetime disbursement limits should be set up for agents and consumers? These amounts will depend on your average volume and compliance requirements.


5. PayNearMe sets up each merchant with a “For Benefit Of” (FBO) disbursement account through one of our banking partners where money can be added from the merchant’s settlement account to cover daily disbursement totals. This account requires the merchant to define the following balance thresholds:
   • Balance – The current balance. This balance is the sum of the principal amounts of all staged disbursement orders (i.e., funds have been deducted from the balance, but have not yet moved to the consumer’s account) plus the available balance.
   • Target Balance or Alert Balance - The desired amount the merchant wants to keep in the disbursement account. When the balance drops below the defined minimum balance (see below), a refill must be initiated to meet the defined target balance.
   • Minimum Balance – The minimum amount the balance can be before requiring a refill of the disbursement account. Once the balance drops below this minimum amount, a refill must be initiated to meet the defined target balance. PayNearMe will email the merchant every hour until the account is refilled and the balance is over the defined minimum amount.


6. Do you want the balance updated synchronously or asynchronously?Typically, PayNearMe decrements the disbursement account balance when a disbursement is staged; however, clients can opt to only decrement this balance once the disbursement payment is made, and funds are moved into the consumer’s account.


7. Do you want PayNearMe to automatically initiate refills via ACH pulls from your account or would you rather control the refill process via wire funding?

Setting Up the FBO Account

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Before You Begin. . .

Before you can begin disbursing funds via PayPal or Venmo, you will need to work with your PayNearMe Technical Account Manager to set up an FBO account. Before this work can begin, your PayNearMe TAM will need the following:

• Legal name of your business that is associated with your Tax ID/EIN
• Your IRS Tax ID (EIN)
• An estimate of your monthly sales volume (NOTE: This does not have to be an exact number)
• A signed PayPal Processing Services Agreement

To support disbursements on the PayNearMe platform, merchants must set up and fund a FBO account with one of PayNearMe’s banking partners:

• Cross River Bank
• Wells Fargo (PayPal/Venmo only)

Merchants can authorize PayNearMe to automatically refill FBO accounts using the ACH pull method. When the balance dips below the defined Minimum Balance, PayNearMe automatically initiates an ACH transfer for the amount required to reach the merchant’s defined Target Balance. While convenient, this method requires—at a minimum—48 hours for funds to become available and gives the merchant less insight and control over balances and funding amounts. It also creates a risk of return and a potential liability for the merchant when disbursements are made without guaranteed funds.

PayNearMe’s preferred option for funding and refilling merchant FBO accounts is direct wire transfers. This method ensures guaranteed funds are available within 1-2 hours after origination and gives merchants more insight and control over balances and refill amounts. With this method, merchants can allocate a percentage of wired refill funds to different disbursement accounts based on payment method (e.g., a disbursement account for PayPal, a disbursement account for ACH/Debit transfers, a disbursement account for Pin4, etc.). Merchant Admin users of the Business Portal will be able to view real-time disbursement balances and define percentages for each disbursement account they maintain. In addition, merchants have access to ad hoc reports through the Business Portal that gives transactional details, including the running balance after each transfer.

When deciding which refill funding method works best for your merchant setup, consider the following: