Description

Synapse allows users to interact with the financial system. Originating transactions allows you to control the flow of funds directly whereas subnets allow users to transact using their Synapse managed accounts outside of your application.

Please note that originating certain types of transactions is not without risk. Transactions can be disputed or returned which can create opportunities for users to double spend.

Basic Patterns

• Transactions are always created relative to a node

• Most Transactions follow the pattern of sending node in the url and the receiving node in the payload

• Certain Deposit Transactions (such as Check Deposits and GreenDot Cash Deposits) have the receiving node in the url.

Create a Wire Transaction

1. Collect Recipient Details

   1. Account number

   2. Routing Number

2. Create an WIRE-US Node (If New Node Required)

3. Collect amount from User

4. Display the Wire Disclosures

5. Confirm the transaction with the User (including any Fees)

6. Verify User with 2 factor Authentication

7. Create Wire Confirmation PDF

8. Create transaction

9. Send confirmation email to user

Create an ACH Transaction

1. Create an ACH-US Node

2. Collect amount from User

3. Display Confirmation

   1. Express authorization language (e.g., “I authorize <Platform> to debit my account")

   2. Amount of transaction

   3. The date of transaction

   4. Account identifiers for both the accounts involved (account/routing, bank name with last 4 digits of account, etc.)

   5. Revocation language (for payments scheduled in advance)

4. Collect Affirmative Consent from the User

5. Create transaction

6. Send confirmation email to user

Notes:

• The ACH system allows users to Debit or Credit funds from their accounts

• ACH transaction will settle within 2-3 business days

• ACH transactions can return up to 60 days later

Create an International Wire Transaction

1. Collect Recipient Details

   1. Account number

   2. Swift Code

2. Create an WIRE-INT Node

3. Collect amount from User

4. Display the Wire Disclosures

5. Confirm the transaction with the User (including any Fees)

6. Verify User with 2 factor Authentication

7. Create transaction

8. Send confirmation email to user

Notes:

• Beneficiary & Correspondent bank details must be added when creating a node

• Certain countries require additional details when processing SWIFT transactions the can be added in the node or transaction details.

Deposit a Check

1. Display RDC Disclosures

2. Collect Affirmative Consent from the User

3. Display Endorsement Instructions

4. Collect confirmation that the check has been endorsed

5. Take Pictures

   1. Front

   2. Back

6. Collect the amount from the user

7. Validate the check with a 3rd party check tool

8. Encode the images with Base64

9. Create Transaction

10. Send the user a confirmation email that the check is being processed

11. Send user a confirmation email when the check transaction settles

Create a Check Recipient

1. Collect the recipient details from the user

   1. Name

   2. Address

2. Create a CHECK-US Node

Notes:

• For regular payments, we recommend creating and reusing the CHECK-US node

Send a Check

1. Get list of CHECK-US nodes

2. Select the CHECK-US node

3. Collect the amount from the User

4. Display Transaction details to User

5. Collect Affirmative Consent from the User

6. Create a transaction to the CHECK-US node

Notes:

• Checks are valid for 60 days

Description

Recurring transactions are a part of everyday life, however due to the complexities of failure handling and customer communication, Synapse does not directly manage scheduled transactions outside of loan repayments.

Basic Patterns

• Pick a task scheduler and runner

• Record scheduled transactions and their current state (future, pending, executed, etc) in a datastore of some form

• Make sure scheduled tasks are self healing (ie processes will automatically recover from intermittent failure)

• Ensure background tasks are interruptible and atomic

• Pick a priority:

  • Maximize success with fan out patterns (such as 1 scheduled transaction per task)

  • Minimize cost with batch transactions (such as all transactions in a single task)

• Enforce idempotency within app and Synapse for scheduled transactions

Creating a Recurring/Scheduled Transaction

1. Collect payment details

   1. Nickname

   2. Sender

   3. Receiver

   4. Amount

   5. Frequency

   6. Start Date

   7. End Date

2. Create relevant users and nodes

3. Display Transaction Disclosures

   1. Express authorization language (e.g., “I authorize <Platform> to debit my account")

   2. Amount of transaction

   3. The date of transaction

   4. Account identifiers for both the accounts involved (account/routing, bank name with last 4 digits of account, etc.)

   5. Revocation language (for payments scheduled in advance)

   6. Cancellation Details for future transactions

   7. Frequency (daily, weekly, monthly) and timing of transactions (start/end date)

4. Store recurring transaction details in data store

Canceling a Recurring Transaction

1. Display list of Recurring Transactions (Platform DB)

   1. Name

   2. Amount

   3. Frequency

   4. Next transaction Date

2. Select recurring transaction

3. Display full recurring transaction details

   1. Name

   2. Amount

   3. Frequency

   4. Start Date

   5. End Date

   6. Recipient

   7. Sender

   8. Next transaction date

   9. Required Language: This is an authorized recurring debit from your account

4. Collect Affirmative Consent from the user

5. Delete the recurring transaction

6. Delete all upcoming transactions

Executing a Scheduled Transaction

1. Notify user of upcoming transaction 7 Days in advance

   1. Transaction Date

   2. Recurring Transaction Nickname

   3. Amount

   4. Recipient

   5. Sending Account

2. Notify user of upcoming transaction 24 hours prior to executing the transaction

   1. Transaction Date

   2. Recurring Transaction Nickname

   3. Amount

   4. Recipient

   5. Sending Account

   6. Current Account Balance

   7. If the transaction exceeds the current balance

3. Get Account Balance (if external account) immediately before creating the transaction

   1. Pull from 3rd party aggregator

4. Create Transaction from your server

5. Notify user via email that the scheduled transaction was executed

   1. Transaction Date

   2. Recurring Transaction Nickname

   3. Amount

   4. Recipient

   5. Sent Account

   6. Current Account Balance

Notes:

• To reduce ACH returns, always check the balance before initiating a scheduled ACH debit request

3rd Party Payments

1. Collect Recipient Details

   1. Name

   2. Email

   3. Address

   4. Phone

2. Create User under a 3rd Party CIP tag

3. Authenticate as the 3rd Party Payment User

4. Create payment node (ACH/WIRE-US/WIRE-INT/INTERCHANGE) under the 3rd party payment user

5. Create Transaction

Notes:

• 3rd party payment users ensures that transactions are not rejected due to incorrect recipient name

Canceling a Transaction

1. Display list of pending transactions

2. Select Transaction

3. Display Full Transaction Details (Hide the cancel button if transaction is no longer Cancellable)

4. Collect Confirmation from the User:

5. Cancel Transaction

Notes:

• Once the transaction is in the Synapse system, it can only be canceled while in the Pending state

• Most transactions are only pending for a few seconds

• If users need to have a quick “Undo” transaction functionality, we recommend adding a delay on the server side before creating the transaction in Synapse

Exceeding Limits

1. Create a transaction that exceeds the users daily/monthly/yearly limit

2. Synapse will cancel the transaction

3. Collect information from the user around the purpose of the transaction

4. Create a ticket with Synapse Support to allow the transaction

5. Synapse Support will process Transaction

Notes:

• Automated limits are intended to support regular user operations

• Occasional transactions that exceed limits are managed as exceptions