Flow of Funds

Each client transaction follows a different flow of funds depending on its type and the account model of the issuing service provider. Transactions created on organization accounts do not trigger additional actions, like fee collections, so their flow is simpler compared to client transactions of the same type. For detailed information on the flow of funds for each model, please refer to the following pages based on the account model:

• Virtual Client Accounts
• Real Client Accounts - Virtualized
• Real Client Accounts - Not Virtualized
• Shared Pool Account

Actual & Virtual Transaction Relation

A key concept to understand is the difference between actual and virtual transactions. The IF Platform acts as the source of truth for both organization and client accounts. This means the IF Platform determines which transaction consumes the balance when multiple transactions are created.

To manage this, the IF Platform updates both the Client Money Account balance at the organization level and the client account balance. When the balance of the Client Money Account is updated due to a client transaction, the transaction on the organization account is called the actual transaction, and the transaction on the client account is called the virtual transaction. These two transactions are linked, and their relationship can be found under "related transactions" for each transaction type.

You can find further examples of this in the detailed flow of funds pages.

Existence of the actual & virtual relationship across all transaction types in different account models: