Understanding the workflow of IBAN Payments

A TransFi IBAN is a dedicated virtual bank account assigned to you, allowing you to easily receive and send fiat currency.

Unlike traditional bank accounts, our IBANs are strictly driven by Orders. To maintain global compliance and keep your funds secure, money cannot be moved or utilized within the TransFi ecosystem unless it is attached to a specific, verified order.

Here is how funds flow through your TransFi IBAN:

1. Receiving Funds (Collections) Your IBAN can receive money at any time, even if you haven't created an order yet. You can receive funds from your own external accounts, your merchants, or your customers.

2. Locked vs. Available Balances Because TransFi requires an order to process funds, any money that arrives in your IBAN without a matching order is temporarily placed in a Locked Balance.

3. Unlocking Your Funds To move funds from "Locked" to "Available," the system automatically unlocks them as soon as the following criteria are met:

   1. A valid order is created for the exact amount.
   2. The sender of the funds is clearly identified.
   3. Standard compliance and risk checks are passed.

4. Special Scenarios Prefunding (Funding your own account): If you send money to your TransFi IBAN from an external account that you have already registered with us, TransFi will automatically create a prefunding order for you and instantly unlock the balance.

Overfunded Orders: If you receive more money than your order requires, the required amount is unlocked and the excess remains locked. You can either create a new order for the excess, or it will be refunded.

Underfunded Orders: If the money received is less than the order amount, the funds remain locked and the order is paused until the remaining balance is sent.

5. The 5-Day Automatic Refund Policy If funds arrive in your IBAN but the requirements to unlock them (like creating an order or completing verification) are not met within 5 working days, TransFi will automatically refund the locked amount back to the original sender's account, minus any applicable transaction fees.