Account Funding

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Account Funding
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 with two different methods:
Push payments, for example credit transfers. These payments come with no risk, as they can't be disputed. A Swan account can currently be funded with this method using the SEPA Credit Transfer or Internal Credit Transfer credit transfers.
Pull payments, for example direct debits or cards 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. 
Funding source
State diagram funding source
Add a funding source
There are 2 requirements to add a funding source to credit a Swan account: 
A Swan account in the Enabled status
A payment mandate must be generated, and linked to the concerned account holder
For now, we only offer the Sepa Direct Debit Core and Sepa Direct Debit schemes for funding source creation. It should be possible to fund a Swan account by card later in 2022
Any account member with the canManageAccountMembership user rights can use the addDirectDebitFundingSource mutation to create a Direct Debit funding source object. Please note that the external iban must belong to the Swan account holder owning the Swan account to be credited.
Enabling a funding source
Before a funding source can be used, its status must be moved fromPending to Enabled. Depending on the type of funding source, the requirements vary:
Funding source type
AccountVerification status is Verified
PaymentMandate status is Enabled
SepaDirectDebitCore 
​✅
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​✅
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SepaDirectDebitB2B
❌
​✅
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Learn more on how to verify an external account and enable a Payment Mandate.
Canceling a funding source
A funding source in the Pending or Enabled status can be canceled by any account member with the canManageMemberships user rights using the cancelFundingSource mutation. The funding source is then moved to the Canceled status and cannot be used anymore (a call to the initiateFundingRequest mutation for example will return an error).
Suspending a funding source
A funding source can be moved to the Suspended status by Swan, for example in case of suspected fraud. It then cannot be used anymore (a call to the initiateFundingRequest mutation for example will return an error).
Account verification
The external account associated to a funding source needs to be verified by Swan before it can be used to fund a Swan account. Swan must verify that the Swan account holder also owns the external account that has been associated with the concerned Funding Source. This process is mandatory and can be followed with the AccountVerification object.
This verification process is only done once per external account (bank account ownership does not change over time). A direct debit funding source in the Enabled status using a specific  Swan account holder x external IBAN couple could for example be moved to the Canceled status, but if a new funding source with the same couple is created, the AccountVerification already is in the Verified status (although a new payment mandate is generated).
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State diagram Account Verification
Verify an external account
When a direct debit funding source is created, an account verification process is automatically run by Swan on all external credit transfers received on any Swan account to determine whether a credit transfer has already been received from the concerned IBAN. Swan then runs an algorithm to determine if the external account belongs to the same holder as the Swan account, with two possible outcomes:
The difference between the names is below a pre-defined threshold: the account verification process is moved from the pendingVerification to the Verified status
The difference is above the pre-defined threshold: the account verification process is moved from the pendingVerification to the pendingReview status. A verification from the Swan Compliance department is required to determine whether the concerned account verification must be moved to the Verified or to the Rejected status.
For Direct Debit funding sources, if no credit transfer from this external IBAN has ever been received by Swan, the owner of the external account must send a SEPA Credit Transfer of any amount from the external IBAN registered in the Direct Debit funding source to any Swan account (their account or any other account). 
Swan will also automatically verify the Account Verification linked to a Funding Source of the SEPA Direct Debit B2B type once the amount of the first debit is released from the reserved balance (if no return or reject happened on this transaction).
Reject an external account
An AccountVerification is moved to the Rejected status by Swan when the owner of the external account is different from the Swan account holder owning the account the funding source is attached to.
Payment Mandate
A PaymentDirectDebitMandate is a mandate where the Swan account holder (the debtor) gives Swan (the creditor) their authorization to pull money from an external account (an IBAN, a card). When the direct debit funding source scheme is SepaDirectDebit B2B, the mandate document provided by Swan must be transmitted to the bank owning the external IBAN that will be debited.
State diagram payment mandate
Creating a payment mandate
Payment mandates are created automatically by Swan when a funding source is created. The payment mandate is created based on the information provided during the FundingSource creation as well as internal information (such as the Swan account holder name).
Enabling a payment mandate
Enabling a payment mandate is considered sensitive. As a result, it must be consented (Swan regular consent system) by any account member with the CanManageMemberships user rights on the concerned account, using the consentUrl provided as a return to the funding source creation mutation. it is then moved from the ConsentPending status to the Enabled status.
Canceling a payment mandate
A mandate is automatically canceled by Swan after their expiry date (ex: card expiry for a card funding source, or 36 months following the payment mandate creation for direct debit funding sources in case there has been no transaction) or for example when a fraud is detected by Swan.
Account Funding Funding limit 
To mitigate the risk inherent to pull payment methods, a FundingLimit parameter is applied at account holder level. The funding limit can be defined as the maximum amount that can be credited onto a Swan account using a fundind source over a pre-defined number of calendar days. The amount and duration are defined per account holder by Swan, based on a global risk and fraud analysis.
A Swan account holder with a 10,000.00 EUR over 30 days funding limit for example can initiate up to 10,000.00 worth of funding requests over 30 days. Beyond this amount, new funding requests will be rejected by Swan until the period is over and the remaining amount is increased again.
FundingSource type
Default funding limit amount
Default funding limit duration
SepaDirectDebitCore 
0.00 EUR
21 calendar days
SepaDirectDebitB2B
N/A
N/A
Account Funding Rolling reserve
A rolling reserve is used to mitigate the risk - inherent to pull payment methods - of receiving unpaid items on a previously credited funding request. It can be defined as a percentage of all transaction amounts credited (booked) on a Swan account using a funding source over a pre-defined number of inter-bank business days. A rolling reserve is applied at account holder level per funding source payment method/scheme. When a funding source transaction is moved to the Booked status on the concerned Swan account, the reserved amount is added to the account reserved balance and is deducted from the account available balance, i.e. that it cannot be used until the rolling reserve duration is over. When the rolling reserve duration is over, the reserved balance is debited from the concerned amount and the available balance credited of the same amount, so that funds can be used.
• For the SEPA Direct Debit Core scheme, the account funding rolling reserve is set to 5 interbank business days
• For the SEPA Direct Debit B2B scheme, the account funding rolling reserve is set to 4 interbank business days
Example of a rolling reserve for SDD B2B
Initiating a funding request
A funding source in the Enabled status can be used with the initiateFundingRequest mutation by any account member with the canInitiatePayments user rights. This sensitive operation requires consent (Swan regular consent system) from the end-user. A payment (SepaDirectDebitCore for example if the Funding Source is using the Sepa Direct Debit Core scheme) is created in the Upcoming status and is moved to the booked status max 2 inter-bank business days following the funding request initiation.
A funding request can be scheduled with the requestedExecutionAt parameter. 
The transaction is created in the Rejected status when the requested amount exceeds the already used funding limit for the concerned funding source.
Overview of the funding source types
Funding source type
Account Verification
Payment Mandate
Funding Limit
Rolling reserve
SepaDirectDebitCore 
​✅
​
​✅
​
​✅
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❌
SepaDirectDebitB2B
❌
​✅
​
❌
​✅
​