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To start making payments from a Swan account, the account first needs to have an available balance. Funds can be added to a Swan account using two different methods:
- Pull payments This is when funds were requested, for example by direct debit or with card payments. These payments can be disputed by the debtor. While they are less intrusive, they do come with some risk.
Swan's Account Funding feature allows you to use pull payments to credit a Swan account.
PaymentDirectDebitMandateis a mandate where the Swan account holder (the debtor) gives Swan (the creditor) their authorization to pull money from a non-Swan account (an IBAN, a card). When the direct debit funding source scheme is SEPA Direct Debit B2B, the mandate document provided by Swan must be transmitted to the bank owning the external IBAN that will be debited. Learn more here.
A rolling reserve is used to mitigate the risk only in case of Insufficient funds - inherent to pull payment methods - of receiving unpaid items on a previously credited funding request. It is defined with all transaction amounts credited (booked) to a Swan account using a funding source over a pre-defined number of interbank business days. Learn more here.