B2B virtual Account:Relation between virtual account,pseudo account,proxy pool and funding account?

[fabulasia]

Can anyone explain the relation between virtual account,pseudo account,proxy pool and funding account?

[waelzhang]

Do you know the answer to the question now? Thank you very much for your answer!

[DianaTran]

Hi @fabulasia and @waelzhang,

I'm looking into this and I'll get you an answer soon. 

[DianaTran · Accepted solution]

Hi @fabulasia and @waelzhang,

A Funding account is a parent account from which children pseudo accounts are generated.  The funding account comes from the processor and is on the Issuer’s BIN.   There is usually one for each company, but there can be multiple per company.  In most use cases, these accounts are virtual accounts and are not transacted on,  however funding accounts can be a physical account that can also be used for transactions themselves.   These are only applicable for pseudo accounts (and another token type, TSYS VANs).

Pseudo accounts are the children accounts generated off of the parent funding account.  Pseudo accounts are generated from the token vault and are from a  Visa-owned BIN (or TSYS BIN for TSYS VANs).  They are 16 digit account number just like a standard account and they inherit the expiration date and credit limit of the funding account.  These are the accounts provided to the end users to transact on.  Pseudo accounts are a type of token and are always virtual.

A “virtual account” is any account that does not have a physical plastic card generated for it.  A funding account can be virtual or not. Pseudo accounts are always virtual.  Sometimes virtual account refers to a standard PAN (non-token and processor-generated account) that just does not have a physical plastic card.

When a company is created, a proxy pool is created to hold the accounts that will be provided to the end users.  The pool is loaded with whatever type of accounts the financial institution issues. So this can be either a token (pseudo account or other token, e.g. TSYS VAN) or a standard PAN.   Accounts in the pool are blocked and cannot be used until they are pulled out of the pool.  When a request for an account comes in, an account is pulled from the proxy pool, unblocked, additional controls are set, and provided to the client.  When the validity period is up, the account is returned to the pool, and blocked again until it is pulled at a later time.

[blitzy_rotashet]

So in short, you're saying that any transaction done on the virtual card will be debited from the funding account (which is the company issuer account)?

[I_Doroteo3]

Hi @blitzy_rotashet, 

Thanks for your patience.

The funding account is the primary account number and acts as the parent account. The virtual pseudo accounts are the child accounts and their balances roll up to the parent. Any transaction done on a child virtual account will ultimately result in changes to the balances on the funding account.

Hope this helps!

Thanks, 

Illana