DAF & DAR (Flex Funding Model)

Overview

ConnexPay’s Flex funding model provides you with more straightforward reporting for easier reconciliation.

You’ll receive the Daily Accounting File (DAF) by email each morning (business days only, excluding bank holidays). At any time, you can also access the Flex Daily Accounting Report (DAR) in Analytics. This report provides a summary and a spreadsheet of transaction-level detail for the activity that will be either credited to or debited from your designated bank account. The information supports reconciliation for payment activity.

Sample Daily Accounting Report

Please note that some of these fields may not be applicable for your ConnexPay account.

DAF Activity
Below is an explanation of each field reflected in the sample DAF above. Please note that some of these sample DAF fields may not be applicable for your ConnexPay account.

  • Prior Day Cash Balance
    **The DAF begins with your starting cash balance from the previous day.

  • Wire/ACH to Fund Cash Account (Credit) or Withdraw from Cash Account (Debit)
    **Funds transferred between your bank account and ConnexPay to fund your transactions or return funds back to you.

  • Beginning Cash Balance - these are the funds you are beginning your day with. We've taken your prior day cash balance and either added to or deducted from that balance to show you where you currently stand.

  • Sale - Credit Card Sale (Credit)
    ** The Credit Card Sale provides the ability to process an incoming Sale (most commonly from
    consumers) that is used to fund an outbound purchase (via virtual credit card or ACH). When a successful sale is completed, the funds are added to your cash balance and available for you to issue purchases to pay your suppliers.

  • Sale - ACH Sale (Credit)
    ** ACH Sales allow you to accept funds from your customers' DDA (as opposed to a
    credit card). Read more about ACH Sales HERE

  • Purchase - ACH Purchase (Debit)
    ** ACH Purchases allow you to issue an ACH payment to a supplier to pay for goods or
    services. ACH transactions are bulk processed once per banking day at 3:00 PM EST. When
    these transactions are processed, they are sent to the respective banks for further processing
    and will settle overnight. Read more about ACH Purchases HERE

  • Purchase - Virtual Card Purchase (Debit)
    ** Virtual Card Purchases allow you to issue a VCC that can be used to pay a Supplier for goods or
    services.

  • Sale - Credit Card Void (Debit)
    ** Voids allow you to effectively terminate the sale as if it never happened. When a full void
    occurs, no money is moved between any of the parties involved in the sale transaction. For info
    on Voids click HERE

  • Sale - Credit Card Return (Debit)
    ** Returns occur once the consumer's credit card has been charged and funds need to be
    refunded. For more info on returns click HERE

  • Sale - ACH Void (Debit)
    ** Voids allow you to effectively terminate the sale as if it never happened. When a full void
    occurs, no money is moved between any of the parties involved in the sale transaction.
    (Effective for ACH Voids that occur before 3 PM EST, otherwise it would be treated as an ACH
    Return)

  • Sale - ACH Return (Debit)
    ** Returns occur once the consumers DDA has been debited and funds need to be refunded. For
    more info on returns click HERE

  • Purchase - Virtual Card Return (Credit)
    ** Virtual Card Returns occur when a supplier returns funds back to the Virtual Card

  • Purchase - ACH Return (Credit)
    ** ACH Returns occur when a supplier initiates the return on an ACH Payment

  • ACH Debit Reject (Credit)
    ** When payments do not clear the supplier’s account, they are rejected. Payments can be rejected
    for a variety of reasons, including closed accounts, incorrect account numbers, etc.

  • Total Activity
    ** Total Activity is the sum of all debits and credits we processed on your behalf the previous day.

  • New Cash Balance
    ** New Cash Balance reflects the days beginning cash balance plus or minus your total activity.

  • Credit/Debit
    ** The Credit/Debit line shows the amount to be credited to or debited from your bank account. We’ll collaborate with you to determine the percentage that will be returned to your bank account each day.

  • Ending Cash Balance
    ** Your New Cash Balance plus or minus the Credit/Debit amount results in your Ending Cash Balance.

  • Minimum Cash Balance
    ** You need to feel confident that the amount you request when issuing a purchase does not exceed your available to issue total (see ATI definition below). And ConnexPay needs to limit our risk exposure when allowing you to issue purchases that are not backed by sales. We do this by requiring a Minimum Cash Balance (MCB). The (MCB) is the base funding amount required to cover an average of 2-3 business days’ worth of supplier payments. If your cash balance falls below that MCB, you must fund your account. We determine the MCB you are required to maintain based on factors such as average daily volume, chargeback ratios, average outstanding liability, etc. Because the MCB can change over time as your volume ebbs and flows, we include the MCB at the bottom of your daily accounting report for reference.

  • Available to Issue
    **Available to Issue (ATI) is a behind-the-scenes calculation to make sure your cash balance exceeds your outstanding liability. Your cash balance is what you’ve built up with ConnexPay to allow you to issue purchases (virtual cards, physical cards, ACH, etc.). Your outstanding liability is the sum of the balance remaining on all active virtual cards. If your sales more than cover your purchases, your cash balance will maintain itself. If not, you will need to provide funding to increase that balance.

Sample Detail Transaction File you will find attached to your email:

FAQs

How often will you review my Minimum Cash Balance for adjustment?

Monthly at minimum. During the first week of every month, we will analyze your activity and determine if an MCB adjustment is needed. If a significant adjustment to your Minimum Cash Balance is required, we will discuss with you before modifying the MCB.

What’s the difference between the Minimum Cash Balance and ATI?

Your Minimum Cash Balance is the amount you’re required to have in your ConnexPay account to issue purchases; this amount is determined by a calculation that analyzes data such as your average card settlements over a 2- to 3-day period and your chargeback ratio.

ATI is determined by subtracting your outstanding liability (purchases by virtual card, credit card, ACH, etc., that have been issued but not yet settled) from the cash balance. This amount is what you have available to be issued. For example:

Will I be notified if my available funds get too low?

Notification alerts are available, but optional. You will receive an alert if your ATI gets too low if you have an alert configured in your Bridge account. Based on your needs, you can adjust the threshold amount that triggers this alert and the email addresses that receive the alert.

What happens to the funds if I have “Credit” reflected in the Credit/Debit line?

You have three options on how to designate those funds:

  1. Those funds can remain in your account for future purchases, or you can request that the funds are deposited in your checking account.

    • Pros: This option gives you the flexibility to determine day to day whether you want to leave additional funds in your ConnexPay account to issue future purchases or have those funds deposited into your checking account.
    • Cons: You must contact us each time you want any funds deposited into your checking account; it’s not automatic.

  2. For the second option, we can set this up so that 100% of your Total Activity amount from the previous day is deposited in or debited from your checking account each day.

    • Pros: This allows you to automatically have funds credited to or debited from your checking account; there’s no need to contact us.
    • Cons: However, you may not be able to issue purchases if your cash balance gets too low.

  3. The third option is to have a set percentage of daily activity, such as 40%, returned to your checking account.

    • Pros: This provides the best of both options above; you’re able to keep some funds in your ConnexPay account in case future settlements exceed your MCB, and you also get access to a percentage of those funds when they’re automatically deposited into your checking account each day.
    • Cons: If you ever want additional funds moved into your checking account (greater than 40%, for example), you must contact us to request the transfer.

Updated 4 months ago