All you need to know about bank transfers

Summary
How it works in your own system
How can I make sure that transfers are credited quickly?
Joint accounts
Transfers issued by a company
Transfers originating from a sender without a payment account
What happens if a transfer cannot be identified and therefore credited?
Dedicated IBAN
What is the Ibanisation of payment accounts?
What are the possible statuses of a transaction?
How do I refund a transaction made by bank transfer?

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How it works in your own system

Depending on your business model, you may find it useful to offer your customers the option of paying/investing by bank transfer, which has no limit on the amount (credit card limits/useful for medium baskets/high transaction amounts - crowdfunding or art/luxury goods marketplace for example), and allows you to protect yourself against the risk of card Chargebacks.

Once payment (MoneyIn) by bank transfer is enabled, we provide you with an IBAN (shared by all our partners, as well as a reconciliation code (usually the name of your platform followed by the external ID of the beneficiary payment account, in the form NAME-IDEXT)),which you need to specify on your website/App at the time of payment, and which allows us to credit the received transfer to the correct payment account upon receipt.
NB: some banks do not recognise the dash "-" in the matching code, in this case, a space between ENVIRONMENTNAME and EXTID is sufficient.

If you want to, you can request a dedicated IBAN (see below).

The information to be provided by your customers when submitting a transfer request via their bank's website/app is listed below:

  • Beneficiary name: Lemonway
  • Beneficiary IBAN: the IBAN that we provide you with.
  • BIC code of the Beneficiary's Bank (if requested): the BIC code that we provide you with.
  • Description: the reconciliation code following the format that we have provided/maximum 35 characters: ENVIRONMENTNAME-EXTID

Receiving a wire transfer and crediting it to the beneficiary's payment account results in the automatic creation of a transaction in your system environment with a Successful status (Type = Incoming/Method = Transfer/Status = Successful), and in fees being charged by Lemonway. For more information, please see the section on understanding fees in our article All you need to know about transactions between payment accounts.

The most frequent causes of delayed credits/inability for Lemonway to credit the incoming wire transfer to the beneficiary payment account are listed below:

  • Beneficiary payment account in KYC status (e.g. KYC1/amount limits exceeded) preventing us from crediting the transfer received to the beneficiary payment account
  • Beneficiary payment account/external ID that does not exist in your system
  • The name of your system appears in the transfer description, but your customer does not specify the external ID of the beneficiary payment account.
  • There is no reference to the name of your system/external ID of the beneficiary payment account, preventing us from linking the bank transfer received to your platform.

How can I make sure that transfers are credited quickly?

Lemonway automatically checks the identity of the sender of an incoming wire transfer into your system against the identity of the holder of the destination payment account (excluding eCommerce, marketplace, and factoring type activities for the debtor - no verification is required).

In order for an incoming wire transfer to be credited automatically to the destination payment account on D+1 (D = banking business day of receipt by Lemonway), it is essential that:

  • The transfer originates from a bank account held by the holder of the beneficiary payment account (except in the event of joint bank accounts - details below).
  • The transfer text contains the reconciliation code (ENVIRONMENTNAME-EXTID).

Joint accounts

A transfer originating from the joint bank account of A and B may be credited to the payment account of A, the payment account of B, or the joint payment account of A and B. As some banks only display the name of one or other of the account holders in transfers issued from a joint account, we recommend that you advise your users to indicate the ENVIRONMENTNAME-EXTID-JOINT reconciliation code in this particular case, so that we do not need to ask you for additional documentation (proof of transfer and bank details of the joint account).

N.B.: We may ask you for proof of transfer, specifying the names of the two account holders, the date and the amount (this information must match the corresponding transfer).

Please see our KYC article for more information and in particular the sections about joint payment accounts.

Transfers issued by a company

  • A transfer originating from a company bank account can only be credited to a payment account held by a legal person.
  • For verification purposes, you may be asked for the issuing bank account number to ensure that it is a corporate account.

Transfers originating from a sender without a payment account

In this particular case, there are two solutions:

  • If the payment account is not yet KYC2 and has never received any payment funds: rename the account, and provide the corresponding necessary KYC documents.
  • Create a new payment account in the name of the sender of the transfer and provide the external ID of the payment account to be credited.

If after 3 months we have not had any contact regarding a pending transfer, it will be returned to the sender.

What happens if a transfer cannot be identified and therefore credited?

In all of the above cases (except in the last case/with no action taken by you, we will return the relevant transfers to their originators after a period of 2 months from the date of receipt of the transfer), we will send you a list of received and unmatched bank transfers by email (twice a week), together with the action/decision expected from you in order for us to be able to credit the funds correctly.You have the option of receiving a pending list (transfers waiting to be credited) every day. Do not hesitate to contact support for more information.
Returned transfers are charged in accordance with the terms of your contract.

If bank transfers are not included in the payment methods in your contract and you would like to activate them, please contact us.

Dedicated IBAN

Depending on the volume of your incoming wire transfers, it may be worth considering a dedicated IBAN/bank account with Lemonway.

A dedicated IBAN (a bank account in the name of Lemonway but whose details are not shared with other partners / are known only by you) allows you to:

  • Maximize the amount credited- incoming bank transfers from your customers that do not include your platform name (and which we would thus be unable to identify in accounts shared by all our partners) are never "lost" and returned to the originators.
  • Improve lead times for crediting- bank transfers received into dedicated bank accounts are treated as a priority. You are notified twice a week of unmatched/pending transfers, allowing you to take appropriate action (e.g. incorrect KYC status of the beneficiary payment account) promptly for faster crediting to the payment account.

Should you wish to request this service, please contact us for more information.

What is the Ibanisation of payment accounts?

We offer the option of linking an IBAN to a payment account. This is called a virtual IBAN, and it is still held by Lemonway. A virtual IBAN can only be linked to one payment account. Once you have generated this IBAN and sent it to your customer, he/she will be able to make a transfer using these bank details and on receipt, the transfer will be credited to the payment account automatically, subject to normal banking processing times. 

Ibanisation allows you to:

  • Avoid pending transfers, since the transfer has been sent to a virtual IBAN linked to a payment account (which will always be the payment account to which the transfer will be credited),
  • Streamline your transfer receipt process and your therefore your business,
  • Limit discussions about transfers to be credited,
  • No longer have to provide your customers with your external identifier,
  • Benefit from faster reconciliation, 

You can provide some of your customers with virtual IBANs. Credits using a bank reconciliation code are still possible. The two processes are compatible. 

What are the possible statuses of a transaction?

To find out which version of the dashboard you are using, please read the article How do I know which version of the dashboard I am using?

Succes/Completed Status

The Success/Completed status indicates the satisfactory completion of the transaction, and the crediting of the transaction amount to the target payment account, thus increasing the account balance.
The transaction is marked as Successful in your dashboard

Dashboard V1: mceclip3.png

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Failure/Error Status

The Failure/Error status indicates that the relevant transaction has been completed unsuccessfully and has permanently failed to be credited to the target payment account.
This status indicates that the transfer has been cancelled by Lemonway (e.g., incorrect beneficiary information provided by the bank) or on your instructions (fee-based/conditional service) and will appear on your dashboard as follows:

Dashboard V1: mceclip4.png

Dashboard V2: mceclip1.pngmceclip2.png

How do I refund a transaction made by bank transfer?

There are two possible scenarios:

  • The transfer has been credited to the payment account: In this case, you will need to issue an outgoing transfer.For more information, please see the article All you need to know about recovering funds from a payment account.
  • The transfer has not yet been credited to a payment account: In this case, you can request a return of funds which we need to process. If you provide us with the sender's bank details, this will speed up the procedure. 

 

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