No, it is not possible to send a payment to a user who has not created a Payment Center receiver account. Creating a receiver account is mandatory to receive ACH direct deposit payments through our Payment Center system.
When a user creates a receiver account, they establish a secure account that enables them to connect their bank account for payment processing. Additionally, this allows Dwolla, our trusted third-party financial provider, to handle any necessary tax reporting associated with the payment process, particularly for receivers who meet reporting thresholds.
To ensure a smooth and compliant payment experience, it is essential that users create a Payment Center receiver account before any payments can be sent to them. This process helps maintain security, facilitates seamless transactions, and ensures proper tax compliance for all parties involved.
It's important to note that to be eligible to receive payments through the Horizon Payment Center system, receivers must have, connect, and verify a valid checking or savings bank account with a US financial institution. The Payment Center system does not support sending physical checks, payments to debit cards, Venmo, PayPal, or any other external payment methods. Only ACH payments to a US checking or savings account are facilitated through the Payment Center system.
If a user cannot meet these minimum requirements or they are unable or unwilling to set up a valid Payment Center receiver account, they must contact their local officiating organization to request an alternate method of payment. It will be up to their officiating organization's discretion to decide whether or not they can establish an alternate payment method for the user outside of the Horizon software systems.
If you have any further questions or need assistance with the Payment Center or receiver account setup, please reach out to our support team for guidance and support.