Flow of FundsFlow of Funds Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.  for Correspondent Accounts (for Remittance as a Service) – USA Only

A very quick flow of funds diagram on how remittance as a service works from the US. The PS here is the PLH (Principal License Holder).

Key:

  • PSP = Principal License Holder (the entity with the money transmitter licenses)
  • [1] Customer signs up using a Correspondent White-labelled Website [2]
  • All Client Registration, AML, KYC, etc. is done on this website [2]
  • The core of this entire flow of Funds System is the PSP TMS (or Transaction Management System) depicted by circle [3]

FOR AN ACH PULL

  • When a Customer [1] wants to pay, for example $100, the TMS [3] will send a request for the same to the ACH Operator [4]
  • The ACH Operator [4] will then send to the Bank [5] the Request to Pull the Funds [6]
  • These Funds [7] will flow to PSP Bank [8]
  • Thus completing the Customer Payment Request via ACH Pull. PSP Bank [8] will then push money [9] into Correspondent’s Bank Account [10]

FOR AN ACH PUSH

  • When a Customer [1] wants to pay, for example $100, the TMS [3] will make note of the Payment.
  • Customer’s Bank [5] will then Push the Funds Directly [11] into PSP’s Bank Account [8]
  • Thus completing the Customer Payment Request via ACH Push.
  • PSP Bank [8] will then push money [9] into Correspondent’s Bank Account [10]

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This page was last updated on December 14, 2021.