This guide serves to assist clients who need direction on how to manage or collect funds from their downstream small-to-medium sized businesses (SMBs) to fund Program Funding accounts at Marqeta’s issuing bank partners. Currently, programs must move funds on behalf of their downstream customers into designated Program Funding accounts at Marqeta’s partner bank. The movement of money on behalf of SMBs requires programs to have a money transmitter license (MTL) unless they use Marqetas bank transfer API. Marqeta does not support a program’s downstream SMBs to directly fund their Program Funding account. Money movement must be done directly by Marqeta’s customers. This requires Programs to have a ledgering system to manage funds of their SMBs. This guide explains the options for assisting in the management of a Program Funding account.
Bank Transfer (Beta)
Move funds from SMBs’ external bank accounts using Marqeta’s bank transfer API. No MTL is required with this option.
Because this product is currently in Beta, customers must submit a request and be approved to use this functionality.
Manage One FBO Account
Create one commingled For Benefit OF (FBO) account with a bank of your choice where all of your SMBs fund. If you plan on moving funds from your FBO account to your Marqeta program funding account, ensure that you’re able to support all 50 MTLs, or use our bank transfer API.
Partner with a bank to provision a credit that will cover your required minimum Program Funding obligation of anticipated spend, then collect funds from your SMBs to cover the credit facility. Note that the credit facility will incur interest that you could pass onto your SMBs or cover yourself. Marqeta offers access to a credit partner, Strike, to fund your program funding account.
Customer Managed Program Funding Account (Beta)
Marqeta offers the option for customers running commercial card programs to manage their own program funding process. With this functionality, there’s no Marqeta requirement to maintain a balance in your program funding account, your program must monitor and determine how much funds you choose to keep in this account. We highly recommend that the account be maintained with at least 1 day of program volume in the Program Funding account during weekdays and 3 days of program volume going to the weekend.
This solution is suitable for:
- Programs where spend occurs typically within business hours, not overnight or on weekends.
- Programs that expect transaction counts to be <15k/day.
- Standard funds flows programs.
- Programs where the cardholder is Marqeta's customer, not a downstream user.
Just-in-Time (J) Funding Program
Using your ledgering system for your JIT Funding gateway, you’ll manage the disbursement of funds for each of your SMBs and keep track of their portion of the program funding account on your system.
Use our activity balance, gpa balance, and transactions APIs to monitor the spending activities of cards. This will assist your team in maintaining a ledgering system for your program funding account.