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Jp Morgan Wallet

Core concepts

This document describes some of the components of J.P. Morgan Wallet™, as well as the general workflow of using the product and calling its APIs.

Demand Deposit Accounts

A Demand Deposit Account (DDA) is an account where you can withdraw funds at any time without prior notice. J.P. Morgan Wallet™ requires at least two DDAs that you use to manage funds:

  • One or more source funding DDAs
  • A Wallet DDA

The source funding DDAs and the Wallet DDA must be located in the same J.P. Morgan branch and use the same currency. You own all funds held in the Wallet DDA.

Source funding DDA

A source funding DDA is an initial repository of funds that you later transfer into the Wallet DDA. You can have multiple source funding DDAs; however, each source funding DDA must be located at the same branch and use the same currency as the Wallet DDA.

For each Wallet program, we establish a "transfer group" that lists all source funding DDAs that can fund the Wallet DDA. If a source funding request includes a DDA that is not in the transfer group, we reject the request.

Note: You can also receive funds directly into virtual accounts from counterparties' external accounts using PayInto Collection and PayInto Receipt transactions.

Wallet DDA

A Wallet DDA is an account that we create for you that is dedicated to your Wallet program. A Wallet DDA's virtual account structure has sub-ledgers that roll up to the top-level Wallet DDA.

You can only fund the Wallet DDA with Wallet API requests. Funds that are deposited or paid out externally without Wallet APIs (such as a bank teller deposit or a check payment) are regarded as "orphaned." These orphan transactions debit and credit your Default (Reconciliation) Virtual Transaction Account (VTA).

Virtual accounts

Each Wallet program has a virtual account structure designed to facilitate complex payment flows for clients handling high-volume transactions. You create and manage virtual accounts with the Wallet API. For more information, see Virtual accounts.

Payments

J.P. Morgan Wallet™ enables you to access global payment methods for both low-value and high-value payments in multiple currencies and locations.

You can use the Wallet API to:

  • Fund your Wallet DDA
  • Move funds between virtual accounts in your Wallet program
  • Pay out funds to a counterparty's external account

For more information, see Payments.

J.P. Morgan Access

Use the J.P. Morgan Access website to view your:

  • Source funding DDA and Wallet DDA physical account balances
  • Pending and completed physical debit and credit transactions
  • Monthly DDA statements
  • Returned payments

J.P. Morgan Access cannot provide your virtual account balances and transactions. You also cannot use J.P. Morgan Access to initiate a payment out of your Wallet DDA—you must use a Wallet API request to initiate a payment.

Workflow

The following steps outline the basic workflow of using Wallet.

Wallet workflow steps
Step API request Example
1. Create virtual accounts for each counterparty. Create a virtual account Create Virtual Account A for Counterparty A, Virtual Account B for Counterparty B, and Virtual Account C for Counterparty C.
2. Fund the counterparties' virtual accounts. PayInto Allocate $20 to Counterparty A, $30 to Counterparty B, and $50 to Counterparty C.
3. Transfer funds from your counterparties' virtual accounts to their external physical bank accounts. PayOut Send $20 to Counterparty A, $30 to Counterparty B, and $50 to Counterparty C.
4. View your Wallet program activity using queries and reporting. Get the balance and transaction history of each virtual account.

Request lifecycle

The following image illustrates the lifecycle of a request sent to a Wallet API endpoint:

JP Morgan Wallet Flow

When you send a request, it generally goes through these steps:

  1. Wallet validates the request's program ID, JSON format, and data elements. The initial validation checks for the presence of mandatory data elements, program-specific parameters, and unique identifiers.
  2. Wallet synchronously checks for exceptions and, if it encounters any, returns a response with the status, error codes, and error descriptions.
  3. Wallet further validates and enriches the request using configuration and reference data.
  4. Wallet creates, reads, or updates a transaction record.
  5. If the transaction is a payment, the appropriate J.P. Morgan payment platform must receive a properly formatted payment request. The platform generates virtual accounting entries to complement the debits made to a DDA and updates the status in the transaction record.

Next steps

Now that you have learned the basics of J.P. Morgan Wallet™, check out the following documentation to continue your journey:

  • Virtual accounts: Learn about the different types of virtual accounts, the default virtual account structure that we create for you, and how to create and update your own virtual accounts.
  • Payments: Learn about the different types of payments that you can make to move funds into, within, and out of Wallet, as well as the different payment rails available to pay counterparties.
  • Testing: Simulate Wallet transactions in the test environment without physically moving any funds.