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Fund Flow Clarification

Fund Flow Clarification

This section provides a clear overview of Capay’s account structure, supported payment methods, and corresponding fund flows.

1. Account Structure in Capay​

  • Each client on Capay is assigned a House Account, which maintains the primary balance.
  • Clients may create one or more Sub-Accounts, each of which can also hold a balance. Please note each sub-account actually is connected with a separate underlying customer profile.
  • Clients are required to create Underlying Customers via API.
    Each underlying customer includes profile information such as name, address, and other required KYC details.

2. Payouts to Australia​

Capay supports two payout methods:

2.1 Normal Payment​

  • Source of funds: House Account
  • Beneficiary view (Sender name): House Account holder name
  • **Flow:
    **Funds are deducted directly from the House Account and paid to the beneficiary.

2.2 POBO Payment (Pay On Behalf Of)​

  • Source of funds: Sub-Account
  • Beneficiary view (Sender name): Sub-Account holder name
  • Fund flow logic:
  • Sub-Accounts are designed to maintain a zero balance by default.
  • To ensure sufficient funds for payout, the system automatically:
    • Allocates the required amount from the House Account to the Sub-Account.
    • Deducts the same amount from the Sub-Account to complete the payout.

As a result, two transaction records are generated in the Capay system:

  • Internal transfer from House Account to Sub-Account
  • Payout deduction from Sub-Account

The above diagram illustrates this flow using a $100 example.

3. Pay-ins in Australia​

Both House Accounts and Sub-Accounts can be assigned AUD virtual accounts, which are used for fund collection.

Capay supports two pay-in methods:

3.1 Normal Pay-in​

  • Payee: Virtual account linked to the House Account
  • **Fund flow:
    **Funds are credited directly into the House Account.

3.2 COBO Pay-in (Collect On Behalf Of)​

  • Payee: Virtual account linked to a Sub-Account
  • Fund flow logic:
  • Funds are first credited into the Sub-Account.
  • The system automatically transfers the funds from the Sub-Account to the House Account.

Accordingly, two transaction records are created:

  • Credit into Sub-Account
  • Internal transfer from Sub-Account to House Account

The above diagram illustrates this flow using a $100 example.

4. Fund Allocation Between Accounts​

From an account structure perspective, both House Accounts and Sub-Accounts are technically capable of holding balances. However, in practice, Sub-Accounts are designed to maintain a near-zero balance at most times, as fund allocation between accounts is handled automatically and executed in near real time.

A common question is whether manual fund allocation between House Accounts and Sub-Accounts is supported.

  • At present, Capay does not provide an API to manually trigger fund allocation between these accounts. All fund movements are system-driven and automated, in accordance with the payment and collection flows described above.
  • Support for manual fund allocation via API is currently under development and will be introduced in a future release.