Supported currencies and identifiers
*Dedicated IBANs to Consumers USD accounts are not supported
Each account is identified by its account token. IBANs and account numbers are assigned on balance level and not on account level. This is done so you can have separate entry and exit points for different currencies and to enable multi-currency accounts.
Account Balance
Depending on the Program configuration, accounts can have one or multiple balances, one per currency, and one main balance. It is important to note that currently, multi-currency cards are not supported, so if you create accounts with more than one balance, you won’t be able to issue a card linked to them.
You can choose to generate and assign dedicated IBANs and account numbers to account balances in your program configuration. If no such are assigned the balances would be only identified by their public tokens. The public tokens can be used for internal transfers or as a reference in an inbound credit transfer to a bulk Paynetics account. Even if creation of IBAN is configured in the program, you can still skip issuing by setting an attribute for this purpose in the API request for account creation.
Account types
The account types define special behavior to enable particular use cases.
Payment accounts
Payment accounts are the most used type of account in the platform. They have all features of a current account and are designed to serve the general needs of both businesses and consumers.
Virtual accounts
Virtual accounts are always assigned to a payment account. They are used to separate out transactions sent and received to/from a payment account for improved reconciliation and treasury management. There is no limitation on the number of virtual accounts, a payment account can have.
Upon creation of virtual account, the platform will generate the same set of balances (e.g. if the payment account has balances just in EUR the virtual account will have a balance just in EUR as well) as of its Payment account. The value of these balances will be 0. Upon debiting a virtual account the linked payment account balance will be charged to fulfil a transaction. All operations done through a virtual account will reflect as transactions on the virtual account but the balance of the payment account.
An example use case of virtual accounts can be to separate the operations of certain business lines for different purposes, such as reporting, cost effectiveness, etc. For instance: You can have virtual accounts which balances have IBANs for every department from your company (IT, HR, Delivery) all under one payment account. Another example is to have a separate virtual account for each of your clients. This would help reconciliation and reporting enormously while keeping accounting complexity and cost low.
Important note: The account holder of the virtual IBAN must be the same as the account holder of the payment account the virtual account is linked to. Example: you open a payment account to company A, all virtual accounts are owned by company A, they can’t be owned by a consumer or another company.
Funding accounts
The purpose of the funding accounts, not surprisingly, is to be used for funding of other accounts and cards. These accounts are limited to only internal transfers and inbound transfers from the business owning the funding account. You should not execute outbound transfers from this type of account. No cards can be linked to funding accounts. Funding accounts are loaded via inbound wire transfer.
Funding accounts can only be assigned to businesses.
A classical use case for the funding accounts would be if you would like to enable real-time load of cards for employee incentive programs for instance. Example: the program purpose is to distribute funds to employees upon. The company can hold a reserve with their funding account and instantly distribute the funds to the employee when they need to.
Account Statuses
Active account
Upon account creation the account is by default active. Active accounts can be debited (e.g., outbound transfers, card operations) and credited (receive inbound and internal transfers). Cards can also be issued and linked to active accounts only.
Blocked account
Blocked accounts are restricted and can’t be debited but can be credited depending on the reason for inactive state. Cards linked to such accounts are blocked and cannot be unblocked while the account is blocked. This status is reversible, and the account can be activated again. All virtual accounts under a blocked account will be blocked too.
Closed account
Naturally, closed accounts can’t be credited nor debited. Upon account closing, if there is a card linked to this account it will be destroyed. If there are virtual accounts linked to a closed account, they will be closed as well. Closure is irreversible status. All virtual accounts under a closed account, will be closed too.
Status changes
Changing account status is a delicate matter. You can change the status of the account only as per the terms and conditions defined together with us during your onboarding.
We may need to deactivate or even close an account without pre-notifying you in case we:
are concerned about the security of the account.
suspect that the account is being used in an unauthorized, unlawful, or fraudulent manner.
reasonably believe we need to do so to comply with the law or court order in any applicable jurisdiction or any other rule or duty applicable to us.
our partnership is terminated.
you have breached any term of the Agreement in a material way.
the end-customer has reached out directly to us with such a request.