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Account funding

Supply money to your Swan account from an external account, whether with a push payment (such as a credit transfer) or a pull payment (such as direct debit).

Account funding is essentially adding money to your Swan account. You might use account funding if it's the first time you're sending money to your Swan account, or if you'd like to fund your Swan account on a recurring basis from an account at another financial institution.

Funding sources​

Fund a Swan account with SEPA Direct Debit B2B. You can also use credit transfers.

Credit transfers

Funding your account with a credit transfer is straightforward with no risk. You can use any type of credit transfer supported by Swan. When funding an account with a credit transfer, a SepaCreditTransferIn transaction with the status Booked appears on your transaction history.

SEPA Direct Debit B2B​

You can fund your account with one pull option: SEPA Direct Debit B2B (business-to-business). SEPA Direct Debit B2B can only be used to fund company accounts, and no refunds are authorized for this funding source.

There are several steps to fund an account with SEPA Direct Debit B2B:

  1. Add the SEPA Direct Debit B2B funding source.
  2. Consent to adding the funding source.
  3. Get the payment mandate with the API.
  4. Declare the payment mandate to the external account provider.
  5. Initiate an account funding payment request.

Add a SEPA Direct Debit B2B funding source discusses steps 1-4 in detail. For more information about step 5, refer to the guide to initiate a funding request.

SDD Core

SEPA Direct Debit Core isn't supported for account funding.

Funding source statuses​

Final status
Can use source
Canceled
Enabled
Source
added
Pending
Suspended
Funding source statusExplanation
PendingA SEPA Direct Debit B2B funding source was added with the API mutation addDirectDebitFundingSource, but consent hasn't been received yet.
EnabledThe account funding source is consented to and can be used.
SuspendedSwan can suspend a funding source if there's suspicion of fraud. While suspended, the funding source can't be used.
CanceledThe account funding source is canceled and no longer available for use. Swan account holders and eligible account members can cancel a funding source. The associated payment mandate is also Canceled.

API Reference: FundingSourceStatusInfo

Payment mandates​

Signed approval through which a creditor or beneficiary can pull money from a debtor's account.

For account funding, the Swan account holder or eligible account member gives Swan explicit permission to pull money from their non-Swan account. For SEPA Direct Debit B2B the signed payment mandate or payment mandate information must be declared to the user's non-Swan banking institution.

Consenting to the direct debit mandate updates the status to Enabled for both the mandate and the funding source.

Signing payment mandates​

The Swan account holder or eligible account member consents to the account funding source payment mandate through Strong Customer Authentication (SCA). Swan takes the SCA validation time as the signatureDate for the payment mandate.

Payment mandate statuses​

Final status
Can use source
Canceled
Enabled
Mandate
added
ConsentPending
Payment mandate statusExplanation
ConsentPendingPayment mandate was added while adding a direct debit funding source with the addDirectDebitFundingSource mutation.

Next steps:
  • If the debtor consents to the mandate, the status moves to Enabled.
  • If the debtor doesn't consent, the status remains ConsentPending.
EnabledPayment mandate is active and valid, and the corresponding funding source (if also Enabled) can be used to fund the account.

The account holder or eligible account member must declare the payment mandate to their debtor institution.
CanceledWhen a funding source is Canceled, the associated payment mandate status also changes to Canceled.
RejectedThe Rejected status isn't used for account funding.

API Reference: PaymentMandateStatusInfo

Account verification for funding sources​

Swan is required to confirm that an account holder or eligible account member has access to the external account they'd like to use to fund a Swan account. Swan refers to this process as account verification for funding sources.

note

Account verification for funding sources isn't related to account holder verification status used during account onboarding, or the general account status.

Account verification statuses​

Final status
Can use source
Rejected
Verified
Source
added
PendingVerification
Account verification statusExplanation
PendingVerificationThe funding source was added, and account verification for the funding source is in progress.

Please note that the funding source status can be Enabled even if the account verification status is PendingVerification.
VerifiedSwan verified that the external account used for funding is accessible to the account holder or eligible account member funding the Swan account. This typically means that a first account funding attempt was successful.
RejectedSwan couldn't verify that the external account used for funding is accessible to the account holder or eligible account member funding the Swan account.

API Reference: AccountVerificationStatusInfo

Interaction between statuses​

Account funding involves three distinct statuses: funding sources, payment mandates, and account verification.

Review the following sequence diagram to understand how statuses interact with each other. Note one key action for the account holder or eligible account member: they must declare the payment mandate to their debtor institution ➎.

Debtor institutionAccount holder or memberSwanDebtor institutionAccount holder or memberSwanFunding source status → `Pending`Payment mandate status → `ConsentPending`Account verification status → `PendingVerification`Funding source status remains `Pending`Payment mandate status remains `ConsentPending`Account verification remains `PendingVerification`Funding source status → `Enabled`Payment mandate status → `Enabled`Account verification status remains `PendingVerification`alt​Funding source status remains `Enabled`Payment mandate status remains `Enabled`Account verification remains `PendingVerification`Funding source status remains `Enabled`Payment mandate status remains `Enabled`Account verification status remains `PendingVerification`Funding source status remains `Enabled`Payment mandate status remains `Enabled`Account verification status remains `PendingVerification`Funding source status remains `Enabled`Payment mandate status remains `Enabled`Account verification status → `Verified`alt[debtor didn't declare mandate to debtor institution in step ➎][debtor declared mandate to debtor institution in step ➎]Adds account funding source1Requests consent to adding the account funding sourceand to the payment mandate2Doesn't consent to payment mandate3Consents to payment mandate4Declares payment mandateto debtor institution (mandatory)5Initiates account funding request6Sends direct debit instruction7Transaction is rejected or returned8Returns failed transaction message9Transaction is booked10Reserved balance is released11

Rolling reserve​

When using SEPA Direct Debit B2B to fund your account, Swan reserves 100% of your transaction for three business days, after which the reserved amount is released to your account. Reserved funds are typically released around 20:00 Central European [Summer] Time (CET/CEST) on the last day of the rolling reserve period. Query the API for an account funding transaction release date.

Rolling reserve is a policy through which Swan holds a certain percentage of the total transaction amount for a contractually predetermined amount of time.

Swan applies rolling reserve to certain types of transactions (largely pull payment methods, such as direct debit and card transactions) to protect users and Swan against various risk factors, such as insufficient funds and attempted fraud. The reserved amount acts as a safety net to cover potential loss for both Swan and users.

Rolling reserve is expressed as a percentage over a period of time. For example, assume rolling reserve is 20% of the transaction amount held for 30 business days. Consider the following example:

A direct debit transaction for 150€ is made and requires rolling reserve.
Swan reserves, or holds back, 30€ for 30 business days, and 30€ is added to the Reserved account balance.
After 30 business days, the 30€ is added to the Available account balance and can be used.

Rolling reserve timelines follow general SEPA availability.

Settlement date and booked time​

SEPA Direct Debit transactions are booked at 20:00 Central European [Summer] Time (CET/CEST) on the settlement date if no rejection or cancellation has been issued or received. Note that settlements dates exclude weekends and SEPA holidays.

Transaction initiatedBooked
Before 11:30 Central European [Summer] Time (CET/CEST)Next business day at 20:00 Central European [Summer] Time (CET/CEST)
After 11:30 Central European [Summer] Time (CET/CEST)Within two business days at 20:00 Central European [Summer] Time (CET/CEST)
Day & time

Days are measured as business days. Time is expressed with the 24-hour clock.

Scheduling funding requests​

If you use requestedExecutionAt when initiating your funding requests, you can schedule them up to one year in advance. Your scheduled requests must be for at least two business days in the future.

Guides​