Glossary of Payouts Landscape Terms

Payments Gateway vs. Payouts Gateway

A payments gateway is a technology platform that helps businesses accept money from customers. It securely authorizes and routes transactions made via credit and debit cards, digital wallets, bank transfers and other payment methods. Payments gateways are commonly used for e-commerce, subscription billing and point-of-sale transactions.

A payouts gateway is a technology platform that helps businesses disburse funds to their customers, employees, contractors and other stakeholders. It enables businesses to send payments through methods such as direct deposit, prepaid cards, digital wallets or even checks. Common use cases include: 

• Appeasements – Compensation such as a refund, credit or gift card provided to customers who have experienced dissatisfaction with a product or service; helps to repair the customer relationship and maintain loyalty.
• Customer Incentives – Payments or discounts given to customers to encourage specific behaviors, such as signing up for a service, making a purchase or referring a friend. Incentives can take the form of discounts, digital payouts, gift cards and more. Some common types of customer incentives include:
  • Loyalty or Reward Payments – Payments made to customers as part of a loyalty program or promotional campaign, typically as a reward for repeat purchases or engagement with a brand. Examples include cashback rewards, points-based rewards and promotional gift cards.
  • Rebates – Partial refunds given to customers after the purchase of a product or service. Rebates can be instant (applied at checkout) or require a post-purchase claim process.
• Employee Reward or Recognition Incentives – Payments or bonuses given to employees to acknowledge achievements, milestones or outstanding performance. 
• Employee Sales Incentives or Bonuses – Financial rewards given to employees, particularly in sales roles, for achieving or exceeding performance targets. Payouts can include commissions, bonuses or SPIFFs (Sales Performance Incentive Funds).
• Expense Reimbursements – Payments made to employees or customers to cover pre-approved business-related expenses, such as travel, meals or office supplies; typically follows the submission of purchase receipts.
• Legal Claim Settlement Payments – Payments made to individuals or entities as part of a legal settlement to resolve disputes related to lawsuits, class actions or regulatory actions.
• Referral Payments – Incentives given to individuals or businesses for successfully referring new customers, employees or partners to a company’s products or services.
• Refunds – Payouts made to return funds that were previously paid. Common use cases include:
  • Bill/Utility Refund – A refund issued by a service provider (such as an electric, gas or internet company) due to overpayment, billing errors or service adjustments.
  • Deposit Refund – The refund of a customer or tenant’s security deposit following the fulfillment of an agreement, such as returning rental property in good condition.
  • Healthcare/Patient Refund – A refund issued to a patient by a healthcare provider, insurer or medical institution due to overpayment, billing errors, insurance adjustments or duplicate payments.
  • Loan Overpayment Refund – A refund made to a borrower who has paid more than the required amount on their loan for reasons such as early payoff adjustments or calculation errors.

Learn more about payouts gateway use cases.

Types of Payments

Physical payments are tangible methods like cash or checks, requiring funds to be exchanged by mail or in person.  

Digital payments use electronic systems like mobile apps or online platforms to facilitate transactions. Common digital payment methods include virtual cards, payment apps, contactless payments and online bank transfers. 

Learn more about common payment types.

Ready to dive into Onbe + NRG’s 2025 Payouts Landscape? Read the report here.