Managing Payout Beneficiaries: Pay the Same People Repeatedly
CoinGate’s payout API now supports beneficiary registration to simplify recurring crypto payments and meet EU Transfer of Funds Regulation requirements effective 30 December 2024.
CoinGate has introduced a beneficiary model within its crypto payout API to streamline recurring payments to the same recipients, such as contractors or marketplace sellers. Instead of re-entering wallet addresses for each payout, users can register recipients once and reference them in future payments. This feature also ensures compliance with the EU Transfer of Funds Regulation, which mandates identified beneficiary data for every crypto transfer from regulated providers.
The beneficiary registration process requires specific fields, including beneficiary type (person or business), email, country, and destination details like currency, platform, and crypto address. For individuals, first name, surname, and date of birth are needed, while businesses require company name and code. The country_state field is mandatory for countries with states, such as the US, where omitting it will cause a failure. Creating a beneficiary also generates a payout setting, which includes an ID for future payments.
Compliance checks are integrated into the registration process, validating wallet addresses against chain-specific formats and screening for sanctions or blacklists. Addresses failing these checks are rejected immediately, preventing mid-payout issues. However, users must be cautious with currency and platform IDs, as they differ between sandbox and live environments. CoinGate recommends resolving these IDs at runtime using the /v2/currencies endpoint, which returns enabled platforms and survives network additions.
The payout process involves referencing a beneficiary’s payout setting ID, the ledger account, and the amount, with optional currency conversion. The external_id field acts as a unique reference and idempotency key, preventing duplicate payments. Send requests may require confirmation for currency conversions, with a one-minute window to lock the rate. Users must handle conversion confirmations promptly to avoid rate expiration or unintended execution.