Create accounts

You can create different account types based on the need of your platform. 

Limited accounts

For platforms that do not want to be in the flow of funds, the Embedded Payments limited accounts provides Limited Demand Deposit Accounts (Limited DDAs) for their clients in their own name and Tax ID. As soon the platform’s client has completed onboarding, you can create their limited account where, money can be paid for your client. The platform’s clients can have two types of accounts with varying to funds and payment capabilities.

• LIMITED_DDA account 
• LIMITED_DDA_PAYMENTS account

LIMITED_DDA account

Funds in a LIMITED_DDA account are not immediately available to your clients. Your platform maintains a security interest over these funds until you are ready to settle to an account in your client's control. Accounts under this category do not have an externally addressable account number, which means they can only be used for settlement from the platform. For example, you cannot receive or make payments into this account from any external bank account.

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LIMITED_DDA_PAYMENTS account

Funds in a LIMITED_DDA_PAYMENTS account are immediately available to your clients. This account can accept inbound funds from your platform and third parties through an externally addressable account number. Your clients can use this account to settle to an account in their control or make business-related payments to external parties. As a precaution, this type of account comes with a direct debit block to avoid accidental direct debits until the platform signs up for direct debit functionality.

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Platform owner accounts

Platform owners have access to one or more of the following accounts. These will be created for platform owners by J.P. Morgan. Platform owners can check the details and balance of these accounts via the API.

Platform owners have access to a DDA (Demand Deposit Account) treasury account outside their program structure. This allows platforms to fund processing, management, LIMITED_DDA or LIMITED_DDA_PAYMENTS accounts or make payouts from processing or management accounts to their treasury accounts with J.P. Morgan. With the API, you can check the details of this account, but not the balance. 

Within the platform’s program structure, the following accounts can be created for platform owners:

• Processing account: Allows platform owners to receive funds directly from merchant acquirers or other platform-level J.P.Morgan accounts. Use this account to process settlements and allocate funds to platform clients, or to consolidate client funds and make payouts to external parties on their behalf. 
• Management account: Manage funds owed to you, such as commissions, platform fees, or other funds due to the platform. These accounts are optional and configured based on your needs.
• Offset account: An Offset account serves as a collateral account. Move funds to and from the treasury account to cover any negative balances in processing accounts or Limited accounts. This helps you manage negative balances and prevent transaction rejection for chargebacks, refunds, reversals, or returns. There are two types of Offset accounts:
  • Processing offset account: Covers negative balances in your processing accounts.
  • Client offset account: Covers negative balances in your clients’ limited accounts.

Transaction account

If your platform is in the flow of funds, the transaction account provides a virtual account to initiate payouts and collect payments owed and settled to various external parties. These virtual accounts offer a flexible and scalable sub-ledgering system under a single physical Demand Deposit Account (DDA). You can create multiple transaction accounts and structure them to fit your business needs.

A transaction account is the lowest-level account in the virtual account structure. All debit and credit transactions are recorded here. Each transaction account may have a distinct Payment Routing Number (PRN), which works like a routing number for a physical bank account. PRN is required only for non-platform initiated collections. A transaction account must be linked to a top-level parent Summary account and cannot have a parent transaction account.

You can create any number of transaction accounts, with or without a PRN. You may specify minimum and maximum balance requirements for each account. For more details, see Routable account numbers.

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Platform operational account

The accounts are standard virtual accounts automatically created during setup. These accounts are always present, follow a fixed naming convention, and are included in notifications, reporting and API queries for easy access to balances and transaction details.

Default account: The default account serves as a central point for managing funds that require special handling, such as reconciliation adjustments, returned payments and deposits not linked to a specific virtual account. This account ensures all exceptional transactions are tracked and reported, helping maintain accurate records and smooth operations. The platform has full access to funds in default account to manage them appropriately. 

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