- Paypal Mass Payments and checks works to pretty large numbers. Minimum payout of $100 avoids writing two thousand $0.34 checks. - Yes there are tax implicati

- Paypal Mass Payments and checks works to pretty large numbers. Minimum payout of $100 avoids writing two thousand $0.34 checks. - Yes there are tax implications. You need to report payments to the IRS. Users probably need to fill out a 1099. You should get a 1099 before sending any money (even under the limit). - Fraud. Someone might buy a bunch of accounts with stolen card numbers credited to their affiliate account. Then you pay them their commission. Later the card company reverses the charges and you're out the commission. A partial solution is to wait a month or so before paying out the commission.