Account Overview

Synapse’s IOU accounts function as a ledgering system to track non-monetary payments made to users. An IOU node functions like a real node that is created for a user, but is not an actual account created with our partner bank. Its purpose is to ledger the movement of funds and users.

Examples of using an IOU node:

• Sending or receiving gift card value
• Sending a wire outside of Synapse’s system, but still wanting to keep track of where it’s going or who is receiving the funds
• Sending or receiving cryptocurrency value between users

Transaction Tracking

Even when the dollar value isn’t being sent to users, it is still important to keep track of the non-monetary transactions. Users undergo screens for sanctions and screening list matches, and often users with money-laundering goals will use services like gift cards to keep transactions away from the spotlight of ACH or interchange. For this reason, even users who don’t send or receive monetary funds should be set up as users with IOU nodes for each transaction.

Send funds to an IOU node:

Funds can be sent to an IOU node from any Synapse account (DEPOSIT-US, SUBACCOUNT-US, CLEARING-US, CRYPTO-US, etc.).

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Notes

1. To add an addendum to the transaction on the user's bank statement, use the 'note' field. Notes are limited to 80 characters.

2. Stay updated on the status of transactions with Transaction Statuses and Transaction Codes.

• In most cases, transactions will settle immediately.