Funds Pooling
Beta
Last updated: September 18, 2024
Note
Funds Pooling is currently only available to selected entities contracted to Checkout Ltd or Checkout SAS.
With Funds Pooling, you can continue to process payouts, even when a sub-account does not have sufficient funds. It automatically covers shortfalls by transferring funds from another sub-account held for that entity into the sub-account used for the payouts. As a result, it offers:
- Optimized payment processing by reducing declines due to insufficient funds
- Reduced manual intervention by automatically allocating your funds to the sub-accounts where they’re needed
- Efficient utilization of idle funds
Funds Pooling can be a good fit for your business if you:
- Fund your payouts from multiple sub-accounts
- May not always have sufficient funds in your relevant sub-accounts, but still need to process payouts in that currency - for example, if you experience periods where your payout volume exceeds your payin volume
- Have a settlement schedule set up when simultaneously processing payins and payouts on the same sub-account in an entity
When you enable Funds Pooling and process a payout from a pooled sub-account, one of the following happens.
The source sub-account:
- Has sufficient funds, and the payment is processed without transferring funds between sub-accounts
- Does not have sufficient funds, but another sub-account in the pool does. Checkout.com automatically transfers the amount required to fund the payout from another sub-account. The funds are transferred from the sub-account with the highest balance at the time the payout is processed.
For cross-currency transfers, Checkout.com will apply live industry-standard interbank foreign exchange (FX) base rates to convert balances between your sub-accounts. The FX rate is determined when the payout is processed and an FX markup, as detailed in your Pricing Schedule, will apply to each currency conversion.
At any point, if there are insufficient funds held in any currencies to cover your payouts, further payouts will be declined.
You process payouts from USD and EUR sub-accounts that are part of a pool. You begin the day with positive balances across both sub-accounts. At 12:00, you've exhausted the USD balance to zero. At 12:05, there's a card payout request in USD, but you have not had a chance to top up your USD balance yet.
Without Funds Pooling, the USD card payout would be declined by Checkout.com because of insufficient funds.
With Funds Pooling enabled and sufficient funds in your EUR sub-account, Checkout.com will convert the required amount from the EUR sub-account and credit it to the USD sub-account. This allows the payout to be processed without manual intervention.
Information
To enable or disable Funds Pooling, or to update the sub-accounts in your pools, contact your Account Manager or [email protected].
You can create multiple pools in an entity with structures to match your operational and reconciliation needs. You can choose which sub-accounts are pooled, as long as they are:
- Owned by the same entity
- A supported currency
- Not already part of another pool
| Region | Currency | Currency code |
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Eurozone | Swiss franc |
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Danish krone |
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Euro |
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Pound sterling |
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Norwegian krone |
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Polish zloty |
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Romanian leu |
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Swedish krona |
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US dollar |
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United Kingdom | Swiss franc |
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Danish krone |
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Euro |
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Pound sterling |
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Norwegian krone |
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US dollar |
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