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Payments and Payouts

Understanding how payments from debtors are processed and how payouts to creditors work.

Overview​

Debitura manages the complete payment flow from debtor payment receipt through fee calculation and creditor payout. This ensures transparency, accurate accounting, and timely fund distribution.

Payment Receipt​

Payment Methods​

Debtors can pay through various channels:

Bank transfer:

  • Most common method in Europe
  • Direct transfer to Debitura trust account
  • Reference number links payment to case
  • Processing time: 1-3 business days

Card payments:

  • Credit/debit cards via secure payment portal
  • Instant confirmation
  • 2-3% processing fee (absorbed by Debitura)

Payment plans:

  • Installment schedules
  • Automatic recurring payments
  • Managed via debtor portal

Cash/check (limited):

  • Via Collection Partners in some jurisdictions
  • Manual processing required
  • Longer processing times

Payment Processing​

Step-by-Step Flow​

  1. Payment received

    • Funds arrive in Debitura trust account
    • Payment matched to case via reference number
    • System creates payment record

  2. Payment verification

    • Amount confirmed
    • Payer identity verified
    • Currency conversion if needed

  3. Payment allocation

    • Payment distributed across invoices
    • Priority order applied (legal costs, interest, principal)
    • Fees calculated

  4. Creditor notification

    • Webhook sent: payment.received
    • Payment details available via API
    • Portal updated in real-time

  5. Payout scheduling

    • Payout calculated (amount minus fees)
    • Scheduled for next payout batch
    • Creditor notified of upcoming payout

  6. Payout execution

    • Funds transferred to creditor's bank account
    • Webhook sent: payout.completed
    • Invoice/receipt generated

Payment Allocation​

Allocation Rules​

When a payment is received, it's allocated in this priority:

  1. Legal costs and enforcement fees
  2. Statutory interest
  3. Late payment fees
  4. Principal debt amount

Collection fee is calculated on the total allocated amount.

Examples​

Example 1: Full payment

Original debt: €10,000
Interest accrued: €500
Legal costs: €300
Total owed: €10,800

Payment received: €10,800
Allocation:
  - Legal costs: €300
  - Interest: €500
  - Principal: €10,000
Collection fee (20%): €2,160
Creditor payout: €8,640

Example 2: Partial payment

Original debt: €10,000
Interest accrued: €500
Legal costs: €300
Total owed: €10,800

Payment received: €5,000
Allocation:
  - Legal costs: €300
  - Interest: €500
  - Principal: €4,200 (€5,800 remains)
Collection fee (20%): €1,000
Creditor payout: €4,000

Payout Schedule​

Standard Payout Timing​

Regular payouts:

  • Processed weekly (every Monday)
  • Include all payments received in previous week
  • Funds arrive within 3-5 business days

Expedited payouts:

  • Available for large amounts (>€50,000)
  • 1-2 business day processing
  • May incur additional bank fees

Minimum payout threshold:

  • €100 minimum per payout
  • Smaller amounts accumulated until threshold met
  • Threshold waived at month-end

Payout Methods​

SEPA transfer (EU):

  • Standard for European creditors
  • No fees
  • 1-3 business day arrival

International wire:

  • For non-EU creditors
  • Bank fees may apply
  • 3-5 business days

Batch payouts:

  • Multiple cases combined in single transfer
  • Detailed breakdown provided
  • One payout per creditor per batch

Multi-Currency Handling​

Currency Conversion​

When debt currency differs from payout currency:

Conversion applied:

  • At time of payout preparation
  • Using ECB reference rates
  • 1% conversion fee may apply

Example:

  • Debt in GBP: £8,000
  • Creditor payout currency: EUR
  • Exchange rate: 1.15
  • Converted amount: €9,200
  • Minus collection fee and conversion fee
tip

Maintain bank accounts in the same currency as your debts to avoid conversion fees.

Payout Tracking​

Via API​

List all payouts:

GET /v1/payouts

Get specific payout:

GET /v1/payouts/{payout_id}

Response includes:

  • Payout amount
  • Currency
  • Bank account details
  • Related cases and payments
  • Fee breakdown
  • Status and dates

Via Webhooks​

Subscribe to payout events:

  • payout.scheduled - Payout prepared
  • payout.processing - Transfer initiated
  • payout.completed - Funds sent
  • payout.failed - Transfer failed

Via Portal​

Monitor payouts visually:

  • Upcoming payouts
  • Payout history
  • Detailed breakdowns per case
  • Downloadable statements
  • Bank account management

Payment Plans​

Installment Agreements​

When debtors can't pay in full, payment plans can be established:

Typical structures:

  • 3-12 month duration
  • Equal monthly installments
  • First payment upfront (10-30%)
  • Automatic recurring charges

Benefits:

  • Higher collection success rate
  • Predictable payment schedule
  • Reduces debtor financial strain
  • Lower escalation costs

Creditor considerations:

  • Longer time to full payment
  • Risk of default on plan
  • Partial payouts as installments received

Managing Payment Plans​

Via API:

  • View payment plan details
  • Track installment status
  • Receive notifications on missed payments

Automatic handling:

  • Missed payment triggers reminder
  • Second miss triggers escalation
  • Plan cancellation after third miss (configurable)

Failed or Disputed Payments​

Payment Failures​

Bank transfer failures:

  • Incorrect account details
  • Insufficient funds
  • Account closed

Actions:

  • Debtor notified to retry
  • Alternative payment methods offered
  • Case status updated

Disputed Payments​

When creditor disputes a payment:

  1. Dispute filed via portal or API
  2. Investigation by Debitura team
  3. Resolution:
    • Payment error corrected
    • Payout adjusted
    • Refund processed if needed

Timeline: 5-10 business days

Financial Reconciliation​

For Creditors​

Monthly statements:

  • All payments received
  • All payouts sent
  • Fee calculations
  • Outstanding balances

Export formats:

  • PDF statements
  • CSV data export
  • API integration for accounting systems

Accounting Integration​

Supported integrations:

  • QuickBooks
  • Xero
  • SAP
  • Custom ERP via API

Data provided:

  • Payment records
  • Fee invoices
  • Payout confirmations
  • Case financial summaries

Trust Account Management​

Client Money Protection​

Debitura holds debtor payments in segregated trust accounts:

Safeguards:

  • Separate from Debitura operational funds
  • Regular audits
  • Bank-level security
  • Regulatory compliance

Creditor protections:

  • Funds protected if Debitura bankruptcy
  • Priority claim on trust account
  • Insurance coverage (varies by jurisdiction)

Payout Transparency​

Fee Breakdown​

Every payout includes detailed breakdown:

Payment received from debtor:     €10,000
Legal costs recovered:            €   300
Interest collected:               €   500
Total collected:                  €10,800

Less fees:
  Collection fee (20%):           € 2,160

Creditor payout:                  € 8,640

Reporting​

Real-time access:

  • Portal dashboard
  • API endpoints
  • Webhook notifications

Historical reports:

  • Payment history by case
  • Payout history by period
  • Fee analysis
  • Recovery rate metrics

Best Practices​

For Optimal Cash Flow​

  1. Maintain accurate bank account details - Prevents payout delays
  2. Monitor webhooks - Get instant payment notifications
  3. Set appropriate payout thresholds - Balance frequency vs. minimums
  4. Use same currency - Avoid conversion fees
  5. Integrate accounting systems - Automate reconciliation

For Large Portfolios​

  1. Request batch payout reports - Easier reconciliation
  2. Use API for automation - Reduce manual processing
  3. Set up dedicated bank accounts - Separate collection funds
  4. Monitor payment trends - Identify patterns
  5. Review fee structures - Optimize for volume

Next Steps​