Real Client Accounts - Virtualized

Client External Incoming Transfers

A client incoming transfer of 100 GBP is received and there will be 5 GBP fee.

Funds flow on the service provider:

Balance changes with the timeline:

• T0: Client Money Account & Fee Collection Account are organization accounts. Client Account is an account belongs to a client. All accounts have 0 balance.
• T1: An incoming transfer of 100 is sent to a client IBAN / account number. Client Account on SP side is credited by 100.
• T2: IF Platform detects the incoming funds via webhook or polling. A provisioned account credit record is created and matched with a client IBAN / account number. Then, the incoming transfer record is created and Client Account by 95 because of the fee.
• T3: Incoming transfer completion triggers an instant virtualization sweep transfer of 100 from the Client Account to the Client Money Account on the service provider.
• T4: IF Platform detects the internal transfer to the Client Money Account and credits it by 100 on IF side
• T5: After the completion of the client incoming transfer, fee collection is handled instantly or using deferred collections. Either of these processes creates an internal outgoing transfer from Client Money Account to Fee Collection Account on IF side. Once this transfer gets to the processing state, Client Money Account is debited by 5 on IF side.
• T6: Outgoing transfer to collect the fees is released the service provider. Service provider debits Client Money Account by 5 and credits Fee Collection Account by 5 in its own records.
• T7: IF Platform detects the internal incoming transfer to Fee Collection Account and credits the account by 5 on its own records.

 Client External Outgoing Transfers

A client outgoing transfer of 50 GBP is created and there will be 10 GBP fee.

Funds flow on the service provider:

Balance changes with the timeline:

• T1: Client account balance on IF side is debited by 60 while transitioning from pending to processing.
• T2: After client transaction is updated as processing, the Client Account on the service provider side needs to be funded. To achieve that, a virtualization funding transfer of 50 is created from the Client Money Account to Client Account. The Client Money Account on IF side is debited by 50.
• T3: The virtualization funding transfer is released to the service provider. Service provider debits the Client Money Account by 50 and credits the Client Account by 50. virtualization funding transfer is marked as completed.
• T4: Completion of virtualization funding transfer triggers the release process of the original client transfer. The client account on the service provider side is debited by 50 while the transaction is being processed. After successful processing, the service provider updates the transfer as completed, then IF Platform also reflects this update.
• T5: After the completion of the client outgoing transfer, fee collection is handled instantly or using deferred collections. Either of these processes creates an internal outgoing transfer from Client Money Account to Fee Collection Account on IF side. Once this transfer gets to the processing state, Client Money Account is debited by 10 on IF side.
• T5: Outgoing transfer to collect the fees is released the service provider. Service provider debits Client Money Account by 10 and credits Fee Collection Account by 10 in its own records.
• T6: IF Platform detects the internal incoming transfer to Fee Collection Account and credits the account by 10 on its own records.

 Client Exchange Transactions

A client exchange transaction to sell 100 EUR to buy GBP is created.

Service Provider offers 83 GBP for 100 EUR. Service provider rate: 0,83

IF Platform adds markup and transparent fee to the service provider offer.

IF Platform offers 80 GBP for 100 EUR to the end user. Client rate: 0,81. So, 2 GBP will be markup profit and 1 GBP will be transparent fee.

Funds flow on the service provider:

Balance changes with the timeline:

• T1: Client account balance on IF side is debited by 100 EUR on exchange transaction creation.
• T2: Before booking the exchange on the service provider, we need to be sure that the Client Money Account has sufficient balance. Therefore, an organization transaction is created on the Client Money Account of buy & sell currencies as the actual transaction of the client transaction. This transaction has the amounts as offered by the service provider. Once its created, the Client Money Account in EUR on IF side is debited by 100 EUR.
• T3: After both client and organization transactions are created, they are booked at the service provider as a single transaction. The service provider debits the sell side by 100 EUR and credits the buy side by 83 GBP on transaction completion.
• T4: Once IF Platform receives the updates from the service provider, transaction is marked as completed and accounts on the buy side are credited. The Client Money Account is credited by 83 GBP while the client account is credited by 80 GBP because of markup & fee.
• T5: After the completion of the client incoming transfer, fee collection is handled instantly or using deferred collections. Either of these processes creates an internal outgoing transfer from Client Money Account to Fee Collection Account on IF side. Once this transfer gets to the processing state, Client Money Account is debited by 3 on IF side.
• T6: Outgoing transfer to collect the fees is released the service provider. Service provider debits Client Money Account by 3 and credits Fee Collection Account by 3 in its own records.
• T7: IF Platform detects the internal incoming transfer to Fee Collection Account and credits the account by 3 on its own records.