> ## Documentation Index
> Fetch the complete documentation index at: https://docs.zennopay.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Funds flow

> USD pre-fund → FX → THB/VND payout. Where the money sits at every step.

Zennopay operates in **USD only**. We never hold THB or VND. Local-currency
conversion happens inside our licensed payout partner network for the
destination corridor.

## Custody posture

* Partner funds are held in a **For-Benefit-Of (FBO) account** at Zennopay's
  US banking partner. The funds remain attributable to the partner — and
  beneficially to the partner's end users — at all times.
* Zennopay is a US-registered Money Services Business (MSB), operating as a
  **payment facilitator (agent of payee)**.
* Zennopay is **not** an e-money institution. Partner FBO funds are never
  co-mingled with Zennopay operating funds.
* We are USD-only. All FX happens inside the payout partner network for the
  destination corridor.

## The shape of the flow

Money moves in two independent rhythms: the partner **pre-funds** its FBO
balance occasionally (a wire), and each payment **draws down** that balance —
there is no per-transaction money movement between the partner and Zennopay.

```mermaid theme={null}
flowchart LR
    subgraph P [Partner side]
        PB[Partner treasury]
        PL[Partner ledger<br/>debits the end user]
    end
    subgraph Z [Zennopay]
        FBO[USD FBO account<br/>at US banking partner]
    end
    subgraph C [Destination corridor]
        Rail[Licensed local payout partner<br/>Vietnam]
        MB[Merchant's bank account<br/>VND / THB]
    end

    PB -- "pre-fund wire (occasional)" --> FBO
    FBO -- "per-payment drawdown (USD)" --> Rail
    Rail -- "local-currency payout" --> MB
    PL -. "per-payment debit, on the partner's own books" .-> PL
```

* The **pre-fund wire** lands in the partner's FBO balance; deposits and the
  running balance are visible in the Zennopay Console.
* Each captured payment **draws down** the pre-funded balance by the USD
  amount (plus margin); the local-currency payout to the merchant's bank rides
  the corridor's local rails through Zennopay's licensed payout partners.
* The partner debits its end user on **its own ledger**, in parallel. Zennopay
  never touches the partner's user balances.
* Zennopay automatically enforces the corridor's
  [per-user regulatory limits](/fundamentals/limits) at
  confirm time (Vietnam: ₫5,000,000 per transaction, ₫10,000,000 per day,
  ₫25,000,000 per month). Partners build nothing for this — the
  [PaymentSheet](/payments/overview) renders the limit copy when a payment is
  blocked.

## How a payment moves

For a payment in the Thailand corridor (`th_promptpay`):

1. The end user authorizes a USD amount in the partner app; their partner-app
   wallet balance decreases by that amount.
2. Zennopay debits the partner's pre-funded USD float for the authorized
   amount plus Zennopay's transparent processing margin.
3. Zennopay routes the USD downstream to its licensed payout partner for the
   corridor, which performs the USD → local-currency FX.
4. The merchant receives the local-currency equivalent (THB for TH, VND for
   VN) in their QR-registered account.

The same shape applies to Vietnam (`vn_vietqr`), settling in VND.

<Note>
  Zennopay's processing margin is disclosed to each partner in their
  commercial agreement and itemized on monthly statements. It is not exposed
  in the API.
</Note>

## When things fail

| Scenario                                                                           | What happens to funds                                                                                                                            |
| ---------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ |
| Partner auth declines before debit                                                 | Nothing moves. The intent is logged as `failed`.                                                                                                 |
| Payout partner returns failure after the USD debit                                 | The debit is reversed. No margin recognized.                                                                                                     |
| Payout-partner success, then settlement later reported failed                      | Full reversal: the partner's float is restored, no margin recognized. The intent ends in `failed` and we emit a `payment_intent.failed` webhook. |
| User-initiated refund within the corridor's refund window (T+7 for TH, T+1 for VN) | The downstream payout partner refunds the merchant; Zennopay reverses the margin and credits the partner's float.                                |
| Refund requested after the corridor's refund window                                | The payout partner rejects the refund. Resolution is handled commercially between the partner and end user.                                      |

## Pre-funding

Partners maintain a pre-funded USD float with Zennopay. Zennopay monitors
float levels and notifies the partner before a top-up is required, so a
partner in good standing does not run out of float mid-day.

## What you receive as a partner

* A **monthly statement** showing transaction count, gross TPV, processing
  margin, and any commitment-fee passthroughs.
* A **reconciliation report** per corridor, comparing Zennopay's records
  against the downstream settlement record.
* A **monthly invoice** for any commitment fees due.

See [Settlement & reconciliation](/concepts/settlement) for cadence and
reporting.