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Core concepts

Payments as an embedded solution

Embedded Payments is a solution for managing money  and paying out to clients on your platform or online experience.

It’s embedded both within the flow of funds through your business, and can be embedded in the user experience of your platform.

Clients

An Embedded Payments client is any participant in your platform who you need to manage money for, and pay out to. You need to onboard clients using the /clients resource. This process may involve some interaction from your client as you may need to provide additional information. Your client also needs to: 

  • Provide information used for verificaction and due diligence checks carried out during onboarding. 
  • Affirm they have read and understood the terms and conditions of Embedded Payments.
  • Receive and verify client documents and IDs required to set up bank accounts. 

Parties and clients

A client is usually a representation of an organization or business who operates on your platform. Even if the client is a Sole proprietor, they are considered to be a business for onboarding. This means that each client must also have a Party - at least one - who can represent the organization. A party is always an individual, and they must hold a specific role in the client's business. 

Required information for clients

When you create a client, you can provide the following information: 

Required information for clients

Required Data

Field

Comments

Legal Name

organizationName

Doing Business As

dbaName

Required if operating with a DBA

Organization Type

organizationType

Business Description

organizationDescription

Address

addresses.addressType

addresses.addressLines

addresses.city

addresses.state
addresses.postalCode
addresses.country

Country of Formation / Incorporation

countryOfFormation

Year of Formation

yearOfFormation

Industry Category

industryCategory

Must provide category and type or NAICS code

Industry Type

industryType

Must provide category and type or NAICS code

Industry NAICS Code

naics

Must provide category and type or NAICS code

Tax ID

organizationIds.idType

organizationIds.value

organizationIds.issuer

Phone

phone.type

phone.countryCode

phone.phoneNumber

Website

website

Optional

Email

parties.email

Optional

Required information for parties

Each party you create can have the following information: 

Required information for parties

Required Data

Field

Comments

Name

firstName

lastName

Date of Birth

birthDate

Address

addresses.addressType

addresses.addressLines

addresses.city

addresses.state
addresses.postalCode
addresses.country

Country of Residence

countryOfResidence

ID Number and Type

individualIds.idType

individualIds.value

individualIds.issuer

Job Title

jobTitle

Phone

phone.type

phone.countryCode

phone.phoneNumber

Email

website

Accounts

Once you have onboarded your client, you can create a payments account for them. This is a bank account from J.P. Morgan, which has limited access and limited capabilities from your client’s perspective.

You can:

  • Move money into this account.
  • Choose to show the balance of this account to your client from within your platform.
  • Trigger payments from this account into your client’s chosen linked account.

You create your client’s account with the the /accounts resource.

Linked accounts (external account)

Your client needs to have a bank account that is in their name and can be shown to be accessible by them, where payments from your platform can be made.

You can add a linked account in Embedded Payments using the /recipients resource. When you add the linked account, an automated check is triggered to make sure the account is owned by your client. In some cases, you may need to ask your client to follow additional check processes.

Your accounts

As a platform owner in Embedded Finance, you have access to one or more of these account types: 

  • Processing Account – Created for you by J.P. Morgan. Enables you to accept funds directly from merchant acquirers or other platform level J.P. Morgan accounts. These accounts are optional if you already have a Sponsored Account or Client Money Account with J.P. Morgan. With the API, you can check the balance and details of this account. 
  • Management Account – Created for you by J.P. Morgan. Enables you to allocate funds owed to you for commissions, platform fees etc. These accounts are optional and configured based on your needs. With the API, you can check the balance and details of this account. 
  • DDA (Demand Deposit Account.) Treasury Account - Created for you by J.P. Morgan. Allow you to fund Processing or Limited_DDA accounts or payouts from Processing or Management Accounts to your other accounts. No balances are returned for these accounts. With the API, you can check the details of this account, but not the balance. 

Account routing details

Embedded Finance bank accounts have J.P. Morgan routing numbers. 

Where payments are permitted into any Processing Account, Management Account, or DDA; use the following routing numbers: 

  • ACH payments - 028000024
  • Wire transfers - 021000021

Make payments

When the time is right for you to make a payment to your client, you use the /transactions  resource to move money from your client’s Embedded Payments Limited DDA into their linked account.

If you chose, you can create an experience within your platform for your client to trigger the payout. Or you can make the payment when it best suits your business process.

Personas for testing and learning

Depending on your business type, you may have very different clients with different sized businesses using your Embedded Payments implementation. When you're testing your implementation, and trying out the API, it might be useful to use these personas who represent different business operators. 

Limited Liability Corporation Persona

The Following Persona is to be used to represent a Limited Liability Company: Fairy Tale Book Shop.

Fairy Tale Book Shop is a small business that has been operating a bookstore for over 30 years. Recently the store has decided to explore an ecommerce strategy by enlisting on an online marketplace. This marketplace is operated by a national retailer and the shop hopes to expand their business to a larger market beyond the small storefront they operate today.

Marketplace Participant

  • Legal Name: Fairy Tale Book Shop
  • Doing Business: As FT Books
  • Organization Type: Limited Liability Company (LLC)
  • Business Description: Step into a world of stories and imagination
  • Address: 2029 Century Park E, Los Angeles, CA 90067
  • Country of Formation / Incorporation: US
  • Year of Formation:1989
  • Industry Category: Sporting Goods, Hobby, Musical Instrument, and Book Stores
  • Industry Type: Book Retailers and News Dealers
  • EIN: 300030003
  • Phone: 7606810558
  • Website: https://fairytalebooks500.com
  • Email: info@fairytalebooks.com

Controller:

  • Name: Peiter Pan
  • Date of Birth: 1945-01-30
  • Address: 2029 Century Park E, Los Angeles, CA 90067
  • Country of Residence: US
  • SSN: 300040004
  • Job Title: CFO
  • Phone:7606810558
  • Email: Peiter@fairytalebooks500.com

Beneficial owner:

  • Name: Tinker Ball
  • Date of Birth: 1969-08-18
  • Address: 3223 Hanover St, Palo Alto, CA 94304
  • Country of Residence: US
  • SSN: 300050005
  • Job Title: CEO
  • Phone: 6503532444
  • Email: Tinker@fairytalebooks500.com

External bank account:

  • Business Name: Fairy Tale Book Shop
  • Account Type: Checking
  • Routing number:122199983
  • Account number: 93993289375

Sole proprietor persona

The Following Persona can be used to represent a Sole Proprietor: Wendy Bird 

Wendy Bird is an elementary school teacher who is looking to earn some additional income. She decides to list her home on a short-term rental marketplace on the weekends while staying with her parents. Wendy has not registered as a business as she is still testing the potential earnings, she operates as a sole proprietor under her own name and SSN.

Marketplace Participant

  • Legal Name: Wendy Bird
  • Doing Business As: N/A
  • Organization Type: Sole Proprietorship
  • Business Description: Relax, unwind and experience the comforting charm of our apartment
  • Address: 90 Bedford Street, Apt 2E, New York, NY, 10014
  • Country of Formation / Incorporation: US
  • Year of Formation: 1964
  • Industry Category: Accommodation and Food Services
  • Industry Type: All Other Traveler Accommodation
  • Tax ID-SSN: 000000001
  • Phone: 2126215110
  • Website: N/A
  • Email: Wendybird@ggmail.com

Controller

  • Name: Wendy Bird
  • Date of Birth: 1990-10-09
  • Address: 90 Bedford Street, Apt 2E, New York, NY, 10014
  • Country of Residence: US
  • SSN: 000000001
  • Job Title: CEO
  • Phone: 2126215110
  • Email: Wendybird@ggmail.com

Beneficial owner

  • Name: Wendy Bird
  • Date of Birth: 1990-10-09
  • Address: 90 Bedford Street, Apt 2E, New York, NY, 10014
  • Country of Residence: US
  • SSN: 000000001
  • Job Title: CEO
  • Phone: 2126215110
  • Email: Wendybird@ggmail.com  

External bank account

  • Individual Name: Wendy Bird
  • Account Type: Checking
  • Routing number: 722166625
  • Account number: 111285162118
  • Micro-deposit amounts: $0.07, $0.08

Next steps

Take a look at how to onboard your clients onto Embedded Payments.