Login
    Contents x
    Account Opening Funding Flow
    • 2 Minutes to read
    • Print
    • PDF
    Contents

    Account Opening Funding Flow

    • 2 Minutes to read
    • Print
    • PDF
    Article Summary

    To open an account, applicants follow these steps: 

    1. An applicant visits your financial institution’s account opening URL to start an application. 
    2. Once the applicant enters their contact information in the application, an application record is created in Narmi. 
    3. Once the applicant completes and submits the application, their information, including additional device level details such as IP address, are sent to Alloy and Middeskfor identity decisioning. 
      • If the application is approved, it proceeds to the next step. 
      • If the application is denied, the process stops entirely (auto-denial applies to consumers only). 
      • If the applicant is placed into “manual review,” the application is paused until it is reviewed by your financial institution. 
    4. If the application passes the identity decisioning step, and the account was funded by debit/credit card, payment information is sent to Authorize.net and/or Elavon for card payment processing. If the account was funded by ACH and the applicant chose instant account verification (IAV), the transaction is instantly verified by MX. If the account was funded by ACH and the applicant chose manual verification, the transaction is sent to either Authorize.net or Microbilt, depending on how your institution handles ACH transactions: 
      • If sent to Authorize.net and accepted, after 3-5 days, the funds are released by Authorize.net. All funds released on a specific date are sent by Authorize.net via ACH to the financial institution-owned account.
      • If sent to Microbilt and accepted, the funds are released after your institution's hold period ends. Go to About Narmi AO ACH Service for complete details.
    5. If payment processing is successful, the application will proceed to the core banking system and open an account(s) on the core.

    A general ledger (GL) account is provided to Narmi during implementation to offset during account opening.

    Note: Your financial institution may not offer both ACH and card funding. 

    Funding Example

    For the following example, we assume the following configuration:

    • All deposits have a 3-day hold.
    • Authorize.net releases funds after 3 days.
    • Elavon releases funds after 1 day.
    • All funds are released by Elavon and Authorize.net via ACH to a Banker’s Bank, a Corporate Credit Union, or the financial institution itself on a daily basis.
    • All deposits into new accounts are offset by a general ledger (GL) account (for example, 749150001).

    Monday:

    • Holly’s new account is approved. She used a debit card to fund the account. A $75 deposit is made into the new account along with a 3-day hold. The deposit is offset against GL Account 749150001.
    • Luca’s new account is approved. He used a bank account to fund the account. A $1,500 deposit is made into the new account along with a 3-day hold. The deposit is offset against GL Account 749150001.
    • Dominic’s new account is approved. He used a credit card to fund the account. A $105 deposit is made into the new account along with a 3-day hold. The deposit is offset against GL Account 749150001.

    Tuesday:

    • $180 is released by Elavon to the Banker’s Bank or Corporate CU account.

    Thursday:

    • $1,500 less Authorize.net processing fees and reserves are released by Authorize.net. This is ACH’d from Authorize.net to the Banker’s Bank or Corporate Credit Union account.
    • The holds in the newly created accounts from Monday automatically expire.

    Periodically:

    • Accounting reconciles GL account 749150001 with the funds received from Elavon and Authorize.net.
    • Accounting monitors Authorize.net and Elavon for return and chargeback activity.
    • Accounting books the processing fee expenses (monthly for Elavon, daily for Authorize.net).
    Was this article helpful?
    What's Next
    Change password!
    Changing your password will log you out immediately. Use the new password to log back in.
    Change profile
    Success!
    First name must have atleast 2 characters. Numbers and special characters are not allowed.
    Last name must have atleast 1 characters. Numbers and special characters are not allowed.
    Enter a valid email
    Enter a valid password
    Your profile has been successfully updated.
    Logout