Accounts

Accounts form the financial backbone of Paygentic’s billing infrastructure. Each organization maintains at least one account that handles fund custody, instant settlements, and payment routing.

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Architecture

Every account operates as an isolated ledger with atomic balance operations. Transactions between accounts execute synchronously, guaranteeing immediate finality without reconciliation delays. Key properties:

• Single currency denomination (USD currently)
• Real-time settlement between parties

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Transaction Flow

The system implements a dual-entry accounting model where every debit has a corresponding credit:

1. Funding - External money enters through payment processors into consumer accounts
2. Consumption - Usage triggers instant transfers from consumer to merchant accounts
3. Settlement - Merchants withdraw accumulated balances to external banks

This closed-loop design eliminates counterparty risk and payment latency.

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Precision Handling

Atomic unit denomination enables micropayment economics previously impossible with traditional systems. Practical implications:

• Charge fractions of pennies for token processing
• No rounding errors in high-volume transactions
• Exact cost attribution for microscopic resource consumption

For example, billing $0.0000001 per database query becomes viable at scale.

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Payment Abstraction

Accounts decouple payment sources from consumption. Merchants receive funds regardless of how consumers originally paid - credit cards, ACH transfers, crypto, or corporate invoicing. This abstraction provides:

• Geographic payment method flexibility
• Compliance boundary isolation
• Reduced PCI scope for merchants
• Unified reconciliation regardless of payment type

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Balance Management

Account balances enforce hard spending limits naturally. Consumption cannot exceed available funds, preventing:

• Debt accumulation
• Invoice disputes
• Collection overhead
• Credit risk exposure

The system rejects transactions that would create negative balances, maintaining financial integrity throughout.

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Instant Settlements

Traditional billing involves days or weeks between service delivery and payment. Account-based transactions settle in milliseconds. Benefits:

• Cash flow acceleration for merchants
• No accounts receivable management
• Eliminated chargeback windows for consumed services
• Real-time revenue recognition

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Multi-Party Transactions

Accounts support complex fund flows beyond simple bilateral transfers:

• Revenue splits - Automatic distribution to multiple recipients
• Platform fees - Percentage deductions during transfers
• Tax withholding - Regulatory compliance deductions
• Affiliate commissions - Programmatic partner payouts

Each component processes atomically within the same transaction.

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Fund Withdrawal

Merchants extract accumulated account balances through payout operations: Prerequisites:

• Completed KYC verification
• Linked external bank account
• Minimum balance thresholds

Processing:

• Batch aggregation for efficiency
• Bank network timing dependencies (1-3 business days)
• Audit trail generation

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Future Enhancements

Multi-currency support - Local currency accounts eliminating FX friction Hierarchical accounts - Team budgets and departmental allocations Programmable controls - Spending policies and automated rebalancing Interest accrual - Yield generation on idle balances

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Technical Integration

Accounts integrate transparently with existing billing flows. No special handling required beyond standard usage reporting. The platform manages all underlying fund movements automatically.

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Next Steps

• Pricing Overview - Structure your billing model
• Entitlements - Pre-authorize payments
• Usage Events - Trigger account transfers