Home / Guides/ Transfer Funds

Payroll Advance


Your Financial Accounts must have the PayrollAdvanceFinancialAccountFeature feature to use Payroll Advance.

In addition to enabling the feature, you will need to integrate with a payroll data source partner to access employment data with your customer's consent and determine a pre-funding amount, if any.

Initiate Advance

Once you've retrieved payroll data from a partner source, your account holder can request an advance and you will initiate a Payroll Advance to a Financial Account.

List Payroll Advance Ledgers

You can query and list all Payroll Advance Payable and Receivable Ledgers, their outstanding balance and additional relevant information.

Create an Employer Financial Account

Once you’ve provided an Advance, you must set up an Employer Financial Account to enable repayment. This Financial Account allows you to match incoming deposits to an employer and ensure the repayment is matched to the correct employer.

Repayment of an Advance

Once you’ve set up an Employer Financial Account and initiated a Payroll Advance, you’ll need to wait for an Externally Initiated Deposit to be received for Repayment to be initiated. You can identify and confirm Payroll deposits using notifications, which will trigger repayment to be applied.

Incoming Deposit Notification

The ACH_EXTERNALLY_INITIATED_DEPOSIT_RECEIVED event will be triggered when an incoming ACH deposit is received.

Confirm Deposit and associate with an Employer's Financial Account

Once you’ve initiated a Payroll Advance and created an Employer Financial Account, you’ll need to confirm each incoming Deposit to ensure repayment occurs. Since deposits have timing requirements, you’ll also need to respond by 11:00 AM ET, one business day before the Settlement Date in the ACH_EXTERNALLY_INITIATED_DEPOSIT. If the confirmation isn’t received, repayment will not be initiated for an advance.

To confirm that the deposit is Payroll, you use the isPayrollDeposit input. This input is optional; however, if omitted, the value will default to true.

Provide Feedback

Was this content helpful?