An internal funds transfer moves funds between balance accounts within your platform. For comparison: a payout is an external funds transfer that moves funds from a balance account to an external transfer instrument (a bank account).
As a platform, you can initiate internal funds transfers between your liable balance account and the balance account of one of your users, two balance accounts of the same user, or the balance accounts of two different users within your platform.
You can initiate internal funds transfers in two ways:
- Automatically: you set up a schedule that automatically triggers the funds transfer based on timing and amount.
- On demand: you transfer funds between balance accounts when needed.
Use cases
The funds can be pushed or pulled from one balance account to the other:
- When you push funds to the target balance account, that account is credited.
- When you pull funds from the target balance account, that account is debited.
Some use cases for internal funds transfers are:
- You want to send bonuses from your liable balance account to the balance accounts of your users.
- You want to debit the balance accounts of your users for the monthly platform fee.
- Users pay the platform fee through split payments, but a user incurred an additional fee that you want to debit the user's balance account for.
- Your users want to move funds between their balance accounts.
See the next steps to learn how to transfer funds internally, and receive related notifications.