Paystack payouts: which bank account and limits
Which bank account a Nigerian business can receive Paystack payouts into, the Starter Business collections limit, and how to record each payout.
By Achekam · · 4 min read · For Running a business businesses in Nigeria
A new Nigerian business can start taking Paystack payments quickly, sometimes before its company registration has even come through. That speed comes with conditions that are easy to miss: where the money can be paid out to, and how much can be collected before Paystack wants to see registration documents.
Those conditions matter for more than convenience. A payout landing in the owner's personal account is a bookkeeping problem waiting to happen, and a collections limit reached in the middle of a busy month stops payments at the worst moment. This article sets out what Paystack says about payout accounts and limits for Nigerian businesses, and how to record payouts so the money is traceable from customer to bank.
How payouts work
Paystack says payments you receive are queued as a pending payout to the payout bank account in your Settings, and that payouts, also called withdrawals or settlements, are processed automatically on its payout schedule without any extra charge.
Paystack's support article does not state the payout timing. It says the experience differs by country, by whether the payment was local or international, and by payout account type. Check the schedule that applies to your account in your Paystack Dashboard rather than assuming a timing someone else experienced.
Paystack explains payout accounts, schedules, limits and the payout detail page in its support article on getting your money.
Starter or Registered: which account you can use
Paystack distinguishes two kinds of Nigerian account:
| Paystack account | Eligible payout account, as Paystack describes it |
|---|---|
| Starter Business | A personal bank account whose details match the BVN and ID the business provided |
| Registered Business | A corporate bank account whose name matches the business's registration document |
Paystack adds that a Registered Business can only change to a corporate settlement account meeting those requirements. Once you have registered, you cannot move payouts back to a personal account.
Why a personal payout account is a bookkeeping risk
For a Starter Business, customer money lands in a personal account. If the same account also receives salary, family transfers and personal spending, separating business receipts from everything else at month end becomes guesswork. If you are on a Starter account, at least keep that personal account for nothing but the business until you can move to a corporate account.
The lifetime collections limit
Paystack says a Nigerian Starter Business has a lifetime collections limit of NGN 8,000,000, or USD 5,000 for USD collections, and that the limit is removed by upgrading to a Registered Business from the Compliance page. Within the limit, any amount per transaction is allowed.
"Lifetime" is the important word. This is not a monthly cap that resets. A growing business will reach it, and once it does, collections stop until the upgrade is done. Plan the upgrade well before you approach the limit, with registration documents and a corporate account ready, and treat the figures as Paystack's at the time of writing.
USD payouts and subaccounts
Paystack says that to get payouts for USD transactions in Nigeria you must provide a Zenith Bank USD domiciliary account that matches its payout account requirements. If you invoice in dollars, open that account before the first USD payment comes in.
If you use subaccounts to share payments with a partner, Paystack says the first payout to a new or updated subaccount is delayed indefinitely until you verify the subaccount on your Dashboard, after which the payout is made the next day. An unverified subaccount simply waits, so verify each one as soon as you create or change it.
Recording each payout
Payouts are where many businesses lose track. Customers paid invoice by invoice; the bank shows one deposit for several days' collections, less fees.
In Achekam, payouts from each payment gateway are recorded against that gateway's clearing account with its fees, either by hand or from Paystack's and Flutterwave's own payout lists. The clearing account holds customer payments that Paystack has confirmed but not yet paid out. When a payout lands in your bank, recording it moves the money from the clearing account to the bank account and records the fees as a cost. At any moment the clearing account should hold only payments still waiting to be paid out; a balance that never clears points to a payout or fee nobody recorded.
Gateway set-up in Achekam
A workspace administrator enters the business's own Paystack credentials in Settings, under Payment Gateways and Checkout, and can test the connection with a real call to Paystack. Non-administrators can view the settings but not save them, which keeps the keys in the hands of the people responsible for them.
Bank accounts in your books
Achekam's pay page can also show the business's bank details and a payment reference, for customers who would rather pay by transfer without a gateway. A staff member marks that payment received once it shows on the bank statement. Each bank account in Achekam takes one currency, so a Zenith USD domiciliary account is set up as its own dollar account, separate from your naira account.
A payout account checklist
- Know whether you are a Starter or Registered Business on Paystack.
- Starter: keep the personal payout account for business money only, and plan the upgrade before the NGN 8,000,000 lifetime limit.
- Registered: confirm the corporate account name matches your registration document.
- USD: open a Zenith Bank USD domiciliary account before the first dollar payment.
- Subaccounts: verify each new or changed one at once.
- Record every payout against the Paystack clearing account with its fees.
Fees and payout timing for other gateways are compared in gateway payouts and fees, and the full set-up is in setting up your payment gateway.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
