How to access Payments

Select Payments in the sidebar, or open app.trykarat.com/payments directly.

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Access requirements

Payments access depends on your role:

• Admins and Managers can send payments, approve submitted batches, and manage recipients and payment methods.
• Employees can submit payment batches for an Admin or Manager to approve before processing.
• Accountants have read-only access to payment activity and tax information.

If you don’t see Payments in your account, contact our concierge team to request access. See User roles and permissions for the full breakdown.

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When the Payments tab appears

The Payments tab automatically appears in the sidebar when either of the following is true:

• Your organization is set up to send payments (a payer)
• Your organization has received one or more inbound payments

If your organization only receives payments, the tab links directly to your incoming payments view. If your organization sends payments and has also received one, the Payments tab includes an Incoming payments sub-item alongside the main Payments dashboard.

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Before you send

Before sending your first payment, make sure:

• Your preferred payout methods (e.g. ACH, PayPal) are enabled in payment settings
• You have sufficient funds in your account

Karat does not advance or front payments. You must have funds available before sending.

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Enabling a payout method

To enable a payout method, go to payment settings and select the method you want to activate.

1. Review and accept the terms for the payout method
2. If your business has multiple owners, confirm each owner’s percentage
3. If any beneficial owner holds more than 25% ownership, upload a government-issued ID for that owner

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Identity document requirements

Beneficial owners with more than 25% ownership must provide a government-issued photo ID before the payout method can be enabled. Accepted documents include:

• Passport
• Driver’s license
• State-issued ID

You can upload a JPG, PNG, or PDF file. Images are automatically compressed to meet size requirements. PDF files must be under 2 MB. Once all required documents are submitted, the payout method is enabled and you can begin sending payments.

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Beneficial owner verification for payout sending

Karat may request additional beneficial owner information after your account is active: for example, if ownership details change, a document expires, or additional details are needed for compliance. When this happens, a prompt appears on your Payments dashboard asking you to complete the verification. Depending on the type of request, payout sending may be either:

• Pending: you can continue sending payments while you complete the requested information.
• Paused: sending new payouts is blocked until you submit the requested information. The Send payments button is disabled and a banner explains what’s needed. Payments already in flight are not affected.

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Completing the request

1. On the Payments dashboard, click Review on the verification banner
2. For each listed beneficial owner, confirm or update their information. Depending on what Karat requested, you may be asked to provide:
   • Full legal name, date of birth, email, phone, and ownership percentage
   • Residential address
   • U.S. citizenship status and nationality
   • SSN (for U.S. citizens) or passport and passport expiration date (for non-U.S. citizens)
   • A government-issued photo ID
3. Submit the form. If more than one requirement is outstanding, you’ll be guided through each one in sequence.

Once all requested information is submitted and accepted, payout sending resumes automatically. You don’t need to contact our concierge team.

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Setting up international payment methods

If your organization is eligible, international payments are automatically enabled when Payments is activated. You’ll see a banner at the top of the Payments dashboard prompting you to set up additional payment methods for paying recipients globally. From the banner, you can:

• Click Set up now to open a guided setup flow
• Enable international bank transfers, SWIFT wire transfers, crypto, or PayPal
• Review and accept terms for each method before activation

Once a method is enabled, it appears as Available in the setup modal. You can manage enabled methods and configure who pays the transfer fee for each method in payment settings. See Payments fees for details on fee handling options. _{Karat is a fintech company, not an FDIC-insured bank. Banking and Card services provided by Grasshopper Bank, N.A., First Internet Bank of Indiana, and Cross River Bank, Members FDIC.}