Depending on your business model, you may find it useful to offer your customers the option of paying or investing by bank transfer, which has no limit on the amount and allows you to protect yourself against the risk of card chargebacks.
Once payment (a Money-In) by bank transfer is enabled, we provide you with an IBAN (shared by all our partners, as well as a reconciliation code- usually your platform name followed by the beneficiary payment account's external ID, in the form NAME-IDEXT). You will need to enter it on your website or app during the payment phase and this will allow us to credit the received transfer to the correct payment account upon receipt.
Some banks do not recognize the dash "-" in the matching code. In this case, a space between ENVIRONMENTNAME and EXTID is sufficient.
The information your customers should provide when submitting a transfer request via their bank's website or app is listed below:
- Beneficiary Name: Lemonway or Lemonway + Environment name.
- Beneficiary IBAN that we provide you.
- BIC Code of the Beneficiary's Bank that we provide you with (if requested).
- Description: the reconciliation code following the format that we have provided (maximum 35 characters): ENVIRONMENTNAME-EXTID
Receiving a wire transfer and crediting it to the beneficiary's payment account results in the automatic creation of a transaction in your system environment with a Completed status (Type = Incoming/Method = Transfer/Status = Completed), and in fees being charged by Lemonway.
For further information about fees, see our dedicated page.
The most frequent causes of delay or inability for Lemonway to credit the incoming bank transfer to the Beneficiary payment account are listed below:
- Beneficiary payment account in KYC status (for example KYC1/amount limits exceeded)
- Beneficiary payment account/external ID that does not exist in your system
- Your system's name appears in the transfer description, but your customer does not specify the external ID of the beneficiary payment account
- There is no reference to your system's name/external ID of the beneficiary payment account, which prevents us from linking the bank transfer received to your platform
In the first 3 cases, you’ll receive a pending list every Tuesday and Thursday with the pending wires.
Bank transfers can have multiple statuses:
✅ Completed: the transaction was successful and the transaction amount is credited to the target payment account.
🔄 Processing: the transaction is being processed. The status might change to Completed or Error.
❗ Error: the transaction is incomplete and failed to be credited to the target payment account. This status indicates that the transfer has been cancelled by Lemonway (for example, incorrect beneficiary information provided by the bank) or following your instructions (chargeable/conditional service).
Lemonway automatically checks the sender's identity of an incoming bank transfer to your system against the holder's identity of the destination payment account (excluding eCommerce, marketplace, and factoring type activities for the debtor - no verification is required).
In order for an incoming wire transfer to be credited automatically to the destination payment account on D+1 (D = banking business day of receipt by Lemonway), it is essential that:
- The transfer originates from a bank account held by the holder of the beneficiary payment account (except in the event of joint bank accounts - details below).
- The transfer text contains the reconciliation code (ENVIRONMENTNAME-EXTID).
A transfer originating from A&B's joint bank account may be credited to A's payment account, B's payment account, or A&B's joint payment account.
As some banks only display the name of one of the account holders in transfers issued from a joint account, we recommend that you advise your users to indicate the ENVIRONMENTNAME-EXTID-JOINT reconciliation code in this particular case, so that we do not need to ask you for additional documentation (proof of transfer and bank details of the joint account).
If we only have one name which does not match the Wallet’s name, we’ll need proof of transfer in any case, even with JOINT written in the description.
Sometimes the bank issuing the transfer does not send us information about the account holder. That’s why we may ask you for proof of transfer, specifying the names of the two account holders, the date, and the account amount (this information must match the corresponding transfer).
For further information, see our KYC article
A transfer originating from a company bank account can only be credited to a payment account held by a legal person. For verification purposes, you may be asked for the issuing bank account number to ensure that it is a corporate account.
In this particular case, there are two solutions:
- (If the payment account is not yet KYC2 and has never received any payment funds) Rename the account and provide the corresponding necessary KYC documents
- Create a new payment account in the name of the sender of the transfer and provide the external ID of the payment account to be credited.
If after 3 months we have not had any contact regarding a Pending transfer, it will be returned to the sender.
In the case of a joint account or a transfer issued by a company, we will send you a list of received and unmatched bank transfers by email (twice a week), together with the action/decision expected from you in order for us to be able to credit the funds correctly. You have the option to receive a Pending list (transfers waiting to be credited) every day.
Returned transfers are charged in accordance with the terms of your contract. If bank transfers are not included in the payment methods in your contract and you would like to activate them, please contact us.
You will need to issue an outgoing transfer.
For further information on how to issue a transfer, see our dedicated article
You can request a return of funds which we need to process.
This is an exceptional procedure for which we can ask the client why they want to refund the wire. There is no refund on a bank transfer. However, in some case, we sent back the wire to the issuer.
Depending on the volume of your incoming wire transfers, it may be worth considering a dedicated IBAN/bank account with Lemonway.
A dedicated IBAN (a bank account in the name of Lemonway but whose details are not shared with other partners and are known only by you) allows you to:
- Maximize the amount credited: incoming bank transfers from your customers that do not include your platform name (and which we would thus be unable to identify in accounts shared by all our partners) are never "lost" and returned to the originators.
- Improve lead times for crediting: bank transfers received into dedicated bank accounts are treated as a priority. You are notified twice a week of Unmatched/Pending transfers, allowing you to take appropriate action (for example: incorrect KYC status of the beneficiary payment account) promptly for faster crediting to the payment account.
We offer the option of linking an IBAN to a payment account. This is called a virtual IBAN, and it is still held by Lemonway. A virtual IBAN can be linked to only one payment account. Once you have generated and sent the IBAN to your customer, he/she will be able to make a transfer using it, and on receipt, the transfer will be credited to the payment account automatically, subject to normal banking processing times.
Linking the IBAN allows you to:
- Avoid pending transfers, since the transfer has been sent to a virtual IBAN linked to a payment account (which will always be the payment account to which the transfer will be credited)
- Streamline your transfer receipt process and, therefore, your business
- Limit discussions about transfers to be credited
- You no longer have to provide your customers with your external identifier
- Benefit from faster reconciliation
You can provide some of your customers with virtual IBANs. Credits using a bank reconciliation code will still be possible. The two processes are compatible.
Updated 15 days ago