Deposit Hub
Deposit Hub is a platform that allows you to open deposit accounts for individuals or businesses via an API call.
Our mission is to ensure that everyone has access to high quality financial services. So it doesn't matter if your customers are underbanked, recently immigrated, small/medium/large business owners. With Deposit Hub, you can onboard customers from all walks of life.
Account Types
The different deposit accounts we offer have different characteristics, KYC requirements, regulatory restrictions, among other distinctions. This variety allows us to offer the best solution for each use case. Please refer to the tables below for an idea of the distinctions between our deposit accounts.
Account Type | Account Code | BIN Type | Description |
Interest Carrying Deposit Account |
| Debit | A bank account that carries interest. This account is ideal for creating a debit card product. |
FBO Sub Account |
| Debit | A Sub Account issued to the end user inside your FBO Account. This account is ideal for creating a low KYC automated savings product. |
Custody Account |
| Pre-Paid | An alternative to the deposit account, where the account is held under a trust vs a bank allowing a lower KYC wallet solution. Ideal for creating Fiat Wallet products. |
Clearing Account |
| Credit | Non-FDIC insured account created for payment processing purposes. Ideal for creating merchant processing or payment processing solutions. |
Key Use Cases
Deposit Hub can be used for pretty much any application that requires an embedded deposit account. But we have seen our customers building the following use cases most frequently with this offering:
Use Case | Description |
Digital Wallet | A digital wallet enables your customers to store funds with you and use our full stack payment features to enable access to funds. |
Merchant Processing | Use our deposit and payments stack to create fully white-labeled payment processing solutions that include merchant processing accounts for your customers. |
Savings Account | Create interest-bearing savings accounts to enable healthier financial habits for your customers. |
Debit Card | Open deposit accounts, issue cards, and account numbers to create a neo-banking platform for your customers. |
Spend Card | Open a custody account, issue a card, use instant auth to fund the card at the time of transaction. |
Minimum KYC Requirements
KYC will vary if the account is opened for an individual or a business and also by the type of Deposit account being opened. Here are minimum KYC requirements by account type and user type:
Account Type | Individuals | Businesses |
| Name, Date of Birth, Address, Email, Phone, and SSN. | On Business: Business Name, Address, Entity Formation Date, Entity Type (LLC, Corp, etc), Entity Scope (Industry), Email, Phone Number of the Business, TIN, EIN Verification Letter issued by IRS, Company Bylaws and Articles of Incorporation. On Beneficial Owners: Name, Date of Birth, Address, Email, Phone, and SSN. |
| Name, Date of Birth, Address, Email, and Phone. | On Business: Business Name, Address, Entity Formation Date, Entity Type (LLC, Corp, etc), Entity Scope (Industry), Email and Phone Number of the Business. On Beneficial Owners: Name, Date of Birth, Address, Email, and Phone. |
| Name, Date of Birth, Address, Email, Phone, and SSN. | On Business: Business Name, Address, Entity Formation Date, Entity Type (LLC, Corp, etc), Entity Scope (Industry), Email, Phone Number of the Business, and TIN. On Beneficial Owners: Name, Date of Birth, Address, Email, Phone, and SSN. |
| Name, Date of Birth, Address, Email, and Phone. | On Business: Business Name, Address, Entity Formation Date, Entity Type (LLC, Corp, etc), Entity Scope (Industry), Email and Phone Number of the Business. On Beneficial Owners: Name, Date of Birth, Address, Email, and Phone. |
Please note that the above requirements assume that ID Score (which includes real-time SSN verification) is being used for Individuals and Beneficial Owners. If not, US Government Photo ID (GOVT_ID,GOVT_ID_BACK) will also be required for all users and beneficial owners.
Negative Balance Reconciliation
We reconcile negative balances for deposit accounts in two ways:
Instantly: If an account reaches a negative balance of -$300 or lower, the user account will be closed and the negative balance will be reconciled immediately.
In 30 days: For any account with more than -$300 in balance, we reconcile negative balances when accounts remain negative with no settled transaction with a created on date within the last 30 days. Post reconciliation, the user account will be closed.
For example: If a user has a negative balance of -$250 and they pay +$150 toward that negative balance before the 30-day period is up, we will reset the 30-day countdown based on the created on date of that successful transaction. If another 30 days pass and there is no successful activity, we will try to reconcile the remaining negative balance of -$100 from the user's other accounts, and if there are no other accounts or there are insufficient funds, we will reconcile the -$100 from your reserve funds.
Once the User account is closed, it will be closed for permission_code:NEGATIVE_BALANCEin this state, the user will not be allowed to send new payments, but the user will still be allowed to create Me2Me transfers going into the account that was closed due to negative balance. Once that transaction settles, the user account will be reopened again, since the user would've effectively reconciled their negative balance.
These reconciliations occur throughout the day, and funds will be debited from the user's other accounts (if available) or from your Reserve Account to reconcile the balance. We recommend setting up webhooks to monitor your reserve account balance. This will help you automatically fund your reserve when it falls below your required minimum balance.
To learn more about how an account can be overdrawn, go to Intro to Risk.
Account Closure with Balance
Before closing an account, we strongly recommend moving the funds out of the account being closed to another internal or external account. However, if you fail to move the funds prior to account closure and the account closure reason allows for auto-cashout (see Possible Permission Codes), payout of the remaining balance will occur the following way:
Check Payout
If the account balance is greater than $0 we will send a check with the remaining balance to the mailing address or base doc address we have on file for the user.
Returns of Final Balance Payments
If the final balance payment returns to us (e.g. the account was closed, the address is out-of-date or "undeliverable", etc.), then the funds will stay in the closed account until a new payment to an updated account is initiated by you.
Earned Interest
In some cases, user accounts are eligible to receive payments for deposits kept with us. Here is how those logistics work:
Interest Accrual
Interest is accrued daily and disbursed monthly to accounts that provide interest. This is done automatically (on the 2nd business day of the following month) and not initiated by the platform. We will also track fractional interest to distribute when the fractional interest reaches an integer amount.
The interest transaction will be coming from node type EXTERNAL-US . These transactions will have from.meta.type value as INTEREST.
1099-INT Tax Forms
For IC-DEPOSIT-US nodes, we will generate users' 1099-INT tax forms at the end of the year. This can be accessed via Statements API Call.
Earned Rebates
In some cases, you are eligible to receive payments for deposits kept with us. Here is how those logistics work:
Rebate Accrual
Rebate is accrued daily and disbursed monthly to your platform deposit account. This is done automatically on the 15th of the following month. We will also track fractional interest to distribute when the fractional interest reaches an integer amount.
The interest transaction will be coming from node type EXTERNAL-US . These transactions will have from.meta.type value as REBATE.
1099-INT Tax Forms
We will generate users' 1099-INT tax forms for the rebate provided to you at the end of the year. You will be able to access the forms via Statements API Call or through the dashboard.
Multi Bank
Our vision for Deposit Hub is to empower FinTech companies to be live with multiple banks at the same time. Our Multi Bank feature is our first step in that direction.
Here is a good visualization of how Multi-Bank Functions:
If enabled, Multi Bank automatically sweeps and stores customer deposits at 2-3 banks, while still giving the user access to all the funds they have in their deposit account. Sweeping funds over $250K per bank extends the FDIC coverage from $250K to $500-750K for your customers.
Since this feature is enabled behind the scenes, no API updates are needed on your side. You will however need to update the following:
Disclosures in your product collateral for the increased FDIC Coverage and also to add the partner banks participating in the Multi Bank program.
Put in opt-in language for your customers so that they can subscribe to the program and agree to us sweeping their deposits.
If you are interested in enabling Multi Bank, contact us.
Getting Started with Deposit Hub
To spin up a Deposit Hub for a user, here are the steps you can follow:
The first step is to create a user account and supply all of their KYC. Once the user account has been created, grab the refresh_token from the response which is needed to issue an OAuth key for the user.
The next step will be to start performing actions on behalf of the user. To do that, you need to grab an OAuth token for the user.
To do that, usually, you make a View User API call and grab the refresh_token from the user profile or get the refresh token from the create user call (like above).
To avoid 2FA, please use the fingerprint value that you used while creating the user account. Once the OAuth key is issued, grab oauth_key which will be needed to launch deposit hub.
First please preview the deposit agreement to the user, once they agree, create the deposit account.
That's it. You've successfully created a deposit account for your user.
Enable Some Features
Now let's enable some features on this deposit account.
Now you have an ACH-US node linked under the user profile. This means the user can fund their deposit account via an external bank account or if funds are available on the deposit account, the user will be able to cash out into the external bank account.
Now the user's deposit account will also have an account and routing number associated with it. This can be used for direct deposit (payroll, Paypal, Venmo, etc.) or direct debit (billpay, Venmo, Paypal, etc.).
Now the user's deposit account will also have a card number associated with it. The card can be instantly activated for spending online or through the mobile wallet of choice. The card can also be shipped so that the user has a physical card at hand for use. You can also use our virtual terminal to emulate some transactions.
Now your user has a fully functioning Deposit Hub! We would also recommend trying the following:
This will enable your platform to always stay up to date when changes/updates to the users, nodes, transactions or subnet objects occur.
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