Please look over How our Accounts Work for more context.

Payments Functionality Overview

All transactions have a beginning and an endpoint.

• For internal transfers, they will start from the node that originates the transmission and end at the node that receives it.
• For transactions that originate or terminate outside of Synapse (e.g. when we receive a Wire Transfer), we will create special nodes that will represent the external account and hold relevant information.
  • These nodes are not "true accounts" but a representation of external accounts on our system.

The precise operational process of how transactions occur behind the scenes will vary depending on the payment type. Generally, we will have direct integrations with payment networks (e.g., Mastercard) or we will get access to the payment network via integrations with our bank partners' systems (e.g. the ACH network).

Verification and Submission of Payments

Each time you post a transaction API call, our system will first perform various checks to verify that the transaction can be allowed.

A Few Examples of Checks We Perform:

• Does the user have all valid KYC?
• Has the user been added to any sanctions lists since he or she last transacted?
• Is the platform allowed to create this type of transaction?

If the transaction passes our security checks we will then submit that information to the payment network or to one of our bank partner's systems that will submit that information to the payment network.

How Our System Handles Returns (And Similar)

Returns, Chargebacks, or similar will be communicated to us by the payment network or by the systems of bank partners. We will notify you (if you are suscribed to webhooks) and automatically move the funds for the relevant accounts as appropriate (i.e. deduct funds from or place funds into accounts).