Can we operate on a good funds & settled model?

A good funds and settled model implies that no credit is being extended, and the funds have been settled into the terminating (intended account). That is exactly how the model of remittance-as-a-service operates.

However, you cannot and are not allowed to operate this service by asking the solution provider to take the funds that have been settled and push these for further beneficiary delivery.

The US solution provider needs to see proof of delivery of funds (using pre-funding) and only then the funds are released from the United States.

Suggested Video(s)

—

This page was last updated on February 27, 2023.

–

Related posts:

  1. Can we operate on a funds good & settled model? Please clarify steps of responsibility in the flow of funds.
  2. What is a Good Funds Settled Model?
  3. What is the Good Funds Settled model?
  4. If we choose to settle into a US Bank Account (Nostro) via FedWire, what component of the transaction is settled here? Are the funds not being sent to the destination country bank?
  5. Our model indicates the fact of using crypto transactions in Asia only (not in the EU), and that instead of connecting user to user, we aim to connect merchants (in Asia) to users (in EU) and merchants (in EU) to users (in Asia). Is this model valid?
Share with others...