In our systems, businesses store their money in what we call wallets. A wallet is simply a way to manage your funds. Any card you issue is linked to a wallet, and transactions on that card draw funds from its associated wallet.

The Root Wallet

All businesses have something known as a root wallet, this wallet is special in that:

• it cannot be deleted, and
• all funds put into your account will go directly into that wallet

Funds can be distributed to other wallets after they've been added to your root wallet. This can be done using our Transfer funds endpoint. For more details, see our Transferring Funds page.

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Note that although funds are initially transferred to wallets from the root wallet, funds don't need to be moved via the root wallet. You can transfer funds between any of your wallets provided they have sufficient funds for the transfer.

Wallet Hierarchies

All wallets are part of a wallet hierarchy - in other words, all wallets have something called a parent wallet. By default, all created wallets are assigned to the root_wallet. However, you can change this to another wallet during the wallet creation process.

We use a hierarchy for wallets in order to dictate what happens when wallets are deactivated or deleted. Additionally, the hierarchy allows more fine grained access control to your funds. For more information, see Deleting and Deactivating Wallets.

Below is an example of a simple wallet hierarchy that could be constructed:

Cards vs. Wallets

Whenever a new card is issued, it is linked to an associated wallet. A card functions as a conduit through which funds in the wallet can be spent, the card having its own limits and restrictions.

Whenever a transaction is made using a card, its associated wallet is consulted for the transaction authorization. If the wallet is inactive, or has insufficient funds, the transaction will fail.