Operational Mechanism

DOKU Payouts operates on a pre-funded model to ensure execution speed and fund security. Merchants maintain full control over their balance, managed through a dedicated virtual account. The step-by-step operational flow is as follows:

1. Fund Top Up (Deposit) Prior to executing payout, merchants are required to top-up their balance into a designated DOKU deposit account (typically a virtual account number per merchant).

   1. Process, transfer funds from the merchant’s corporate bank account to the DOKU deposit account.

   2. SLA, the balance is updated automatically on the merchant dashboard immediately upon receipt (typically real-time, subject to bank cut-off time)

2. Payout Instruction Once sufficient balance is available, the merchant submits payout instructions via API (for automated transaction) or dashboard (for single and/or bulk upload). The DOKU Payouts system verifies the deposit balance availability. If the balance is insufficient, the transaction is automatically rejected to prevent overdrafts.

3. Validation and Execution

   The DOKU Payouts system performs account validation with the beneficiary bank.

   1. Upon successful validation, the Merchant’s deposit balance is deducted or reserved strictly for the transfer amount + service fee.

   2. The instruction is routed to the banking network for crediting to the beneficiary’s account.

4. Payout Funds are received by the beneficiary, and the DOKU Payouts system receives a success confirmation from the destination bank and transmits a “success” status back to the merchants.

5. Refund Mechanism In the event a transaction fails to process at the destination bank:

   1. The transaction status is updated to “Failed”.

   2. The principal fund amount previously deducted is automatically refunded back to the merchant’s deposit balance, making it immediately available for future transactions.