Account Structure

You will have two accounts with your financial institution:

1) Operational Account

This is an account for your company on the FI’s core. Specially, this account appears in Online Banking and is 100% owned by your company. The operational account is most often used to collect fees charged to customers, recieve interest splits, or transfer initial funding into ZEscrow.

2) Holding Account

This is the account on the FI’s core where all escrow funds are held. This account is subaccounted by the ZEscrow system, and accessible via the Admin Portal and through the API, but will not be viewable in your online banking portal.

What is a Subaccount?

In ZEscrow parlance, a subaccount is a child account of the holding account (see image below).

However, these subaccounts are better thought of as full fledged accounts that hold money on behalf of third-parties (aka: beneficiaries). Each of these accounts has its own compliance, tax reporting and keeps track of its own interest.

Subaccounts can be originated, closed, and funded through the API. See adding a subaccount

Is this setup compliant for my use case?

This account structure is designed to support most escrow use case in a compliant way. If you have concerns about specific compliance issues with your product, we are able to work with the FI to create a solution that works for you.