Ledger Management

Ledger Management is a set of complementary features that provides an out-of-the-box "wallets" offering that helps with the segregation of funds belonging to various entities while providing virtual "account" structures that can be assigned to entities and where value can be transferred between accounts and can be transferred to and from bank accounts.

Central to Ledger Management is an offering called “Client Accounts” - these are wallets that have the following properties:

• Can be assigned to a specific entity, individual or business including the VoPay client themselves
• They can be set up on demand and can be destroyed on demand (with some pre-conditions)
• They can be set up with a certain type to allow or disallow some types of transactions such as funding from an external source, withdrawal to an external source or transactions with other Client Accounts
• They can be queried for their transaction history, current balance, status and interactions with other wallets

Types of Accounts

Client Accounts are one of the following types:

• Individual: to be assigned to entities that are individuals and can be identified with attributes such as tax ID and address
• Business: to be assigned to entities that are corporates or other business types and can be identified with a business number
• Receive only: entities that are either individuals or businesses that are only expecting to receive funds and are not expected to send funds to other entities
• Standard: individual or business entities for whom we haven't completed all the KYC procedures and is often a transitory step to one of the other client account types. Standard client accounts have reduced transaction limits

Client Account Transactions

Transactions between client accounts

VoPay supports transfers between client accounts - these are book transfers and do not incur any costs. Another advantage of these transactions is that they are instantaneous.

An example of this is a transfer transaction.

Transactions between client accounts an external accounts

A client account can have linked bank accounts and cards. These external accounts can be used to fund a client account or to withdraw funds from a client account.

Examples include fund or withdraw transaction types.

Chained transactions

To simplify multi-step transactions where a client account is first funded, funds are immediately transferred to another client account, and then withdraw, we have provided chained transaction types:

• Fund-Transfer: a chained transaction that funds a client account using an external payment method and upon successful funding, transfers funds to another client account
• Transfer-Withdraw: a chained transaction where funds already in a client account are transferred (instantly) and then withdrawn to an external payment method
• Fund-Transfer-Withdraw: a combination of the two above

For the external payment leg of a chained transaction, VoPay will use the default external payment method assigned.

Support for external funding methods

Client account transactions are currently compatible with bank transfers (ACH/EFT). Support for Interac rails will be added in the near future.

Are Client Accounts For Me?

Client Accounts are best suited to scenarios where one or more of the following are applicable:

• Funds are needing to be held in some intermediary form of “account” where a user can see their available funds and then choose to deploy those funds in some way. The best example of this would be funds held in a wallet of a financial app that can be used for savings, spending or investing. From a logistics standpoint, having these accounts allows for instant deployment of funds and avoids the need for users to fund or withdraw money from physical bank accounts.
• For some verticals/industries, it is required to have funds segregated from the funds of other users while having a full trace of the segregation of funds and where the funds came from and where they move to. An example of this would be funds that are held in trust on behalf of a home buyer after they make their initial deposit but before closing on the purchase. Typically, this is achieved by working with a traditional financial institution that will provide physical accounts while adding significant expense and overhead making it unsustainable for any meaningful volumes

In summary, using Client Accounts will provide clear segregation of funds with full traceability of movement of money in and out of your ecosystem and between accounts.