Electronic Payment Process #
Emails:
- funding/funding_settled.pug - optional
- funding/funding_failed.pug - optional
flowchart TD A[User authorized and provides payment info on Payment step] --> B(User confirms investment) B --> C([LAW REQUIRED EMAIL : CONFIRMED INVESTMENT]) B --> D{{Identity Verification}} B --> E{{Accreditation Verification}} D --> F{Approved?} E --> F F -->|No| G{{Investment Cancellation}} F -->|Yes| H(LEGALLY CONFIRMED INVESTMENT) H --> I{Transaction is initiated} I --> J[Transaction is failed] J --> K([EMAIL : TRANSFER FAILED]) I --> L[Transaction is processed] L --> M([EMAIL : INVESTMENT PAID]) J --> G
The investor’s KYC and accreditation are verified through third-party identity verification and accreditation providers, ensuring the investor meets the necessary qualifications before the investment process can be finalized. This verification is a SEC requirement and is critical before any financial transaction or wallet creation can occur.
Once KYC and accreditation are confirmed, the platform securely initiates the transfer using the payment method authorized by the investor during the investment process. The transfer processing for ACH payments may take 1-3 business days depending on bank processing times, but payments via certain providers may be processed immediately or within minutes.
It is important to note that we cannot create a wallet or process any transactions without completing the KYC verification. Additionally, we cannot transfer funds from bank accounts unless the data in the profile matches the wallet data. This verification and matching process is managed by a trusted third-party service, such as Plaid, ensuring that only accurate and compliant transactions are processed.
Once payment clears, the platform updates the investment status to reflect whether the payment was successful or unsuccessful, and the investor receives a confirmation email notification. This transparency ensures that the investor has full visibility into the transaction process.
To further enhance investor relations and transparency, we ensure that all fund data is clearly presented and understandable for the investor at every step. Our commitment to using trusted third-party partners is critical because the clearance and settlement process involves managing counterparty risks and presents significant challenges in asset management. By relying on trusted third parties, we ensure the integrity and security of every transaction.
In compliance with FINRA guidelines, we follow the NIST 800-63B standards for handling sensitive data. While this standard provides general recommendations for data security, it leaves some ambiguity regarding the exact requirements for storing sensitive information. In the event of a data breach or improper handling of sensitive data (such as unauthorized access to banking information), there could be significant legal and financial consequences for the platform. To mitigate such risks, we never store sensitive data directly on our platform. Instead, we rely on trusted third-party partners to handle and secure payment information, ensuring both compliance and the protection of investor data.
Reg D requires Investors’ funds protection by holding them in escrow during the campaign. By leveraging our escrow agent solution, we guarantee that funds are securely managed and processed, ensuring seamless operations even in challenging edge cases.
Our email-service has integration with the trusted delivery and marketing platform which ensures security, compliance, and deliverability. It obust encryption and regulatory compliance (FINRA), protecting sensitive financial data and minimizing the risk of phishing or email spoofing. Additionally, third-party providers handle scalability, uptime, and automation, ensuring timely communication during high traffic periods and streamlining customer notifications.
Notice: Provider Variability and Compliance Assurance
Please be advised that, depending on customer preferences, the specific providers involved in the investment and related processes, including identity verification, accreditation checks, electronic wallet provision, email communications, and other related services, may vary. However, rest assured that all such providers are carefully selected to meet the highest standards of security, compliance with applicable laws and regulations, and user experience best practices.
Each provider undergoes a rigorous vetting process to ensure they align with our commitment to safeguarding your personal and financial information. We prioritize full adherence to regulatory requirements, ensuring that your investment experience remains secure, compliant, and seamless.
Test Cases
All processes on our platform are thoroughly documented, including detailed test cases, which are especially critical whenever changes are made. Test cases ensure that every feature functions as intended, identify potential issues early, and maintain the platform’s reliability, security, and compliance for our investors.
Related Use-Cases: