;
};
With FBO funding, a Method-managed for-benefit-of (FBO) Account supplies funds for a group of Payments. You can fund it in two ways:
* **Push:** You send funds to the FBO Account by ACH or wire.
* **Pull:** Method debits your verified disbursement Account by ACH and moves the funds to the FBO Account.
Method uses the FBO Account's available balance to disburse Payments to eligible liabilities.
Method configures the FBO Account, funding instructions, and operating requirements during implementation. You do not select a funding model in `POST /payments`.
## Flow and schedule
### Daily schedule
| Rail | Payment creation cutoff | Initiate batch funding by |
| -------- | ----------------------- | -------------------------------------- |
| **ACH** | 1:30 PM CT | Initiate the ACH credit by 1:45 PM CT. |
| **Wire** | 3:30 PM CT | Initiate the wire by 4:15 PM CT. |
The Payment creation cutoff determines which Payments enter the batch. The later time is the deadline to initiate funding for that batch, not when the funds must arrive.
At 4:30 PM CT, Method starts to disburse funded Payments. On the next banking day, reconcile the FBO balance, Payments, and funded reversals.
**ACH funding:** Do not wait for the 3:35 PM CT reports. Use the funding target configured during implementation, the outstanding Payments in your own ledger at the 1:30 PM CT cutoff, and the FBO Account's `available_balance` to size the ACH credit. Use the reports to reconcile the batch after funding.
**Wire funding:** Push summary and itemized [Report Schedules](/reference/report-schedules/overview) run at 3:35 PM CT, after the 3:30 PM CT Payment cutoff. Compare the summary with the FBO Account's `available_balance` to size the wire due by 4:15 PM CT.
Method confirms the transfer instructions and any bank-specific lead time during implementation. Initiate funding early enough for the FBO Account to be funded before disbursement starts.
### Daily schedule
| Time | Action |
| --------------------- | -------------------------------------------------------------------------------------------------------------------- |
| **Before 1:30 PM CT** | Create Payments and confirm that the disbursement Account is active. |
| **1:30 PM CT** | The Payment cycle closes. Method initiates the ACH debit from the disbursement Account. |
| **1:35 PM CT** | Pull summary and itemized [Report Schedules](/reference/report-schedules/overview) run for recurring reconciliation. |
| **After the cycle** | Method processes eligible Payments according to the configured funding and hold rules. |
| **Next banking day** | Reconcile the source transfer and Payment statuses. |
The schedules apply on banking days and exclude banking holidays.
## Reserves, prefunding, and holds
Your FBO setup may include a reserve requirement, a prefunding requirement, or a funding hold.
* **Reserve:** A required balance held in a separate Method-managed reserve Account outside the operating flow of funds. It covers failures when Method pulls funds from the source Account, such as an ACH debit returned for insufficient funds (NSF). This helps protect your organization and Method from the resulting funding shortfall.
* **Prefunding:** Additional funds that you send to the FBO Account before Method disburses Payments to decrease potential funding hold time.
* **Funding hold:** A delay before disbursement while Method waits for source funds to clear.
Method confirms the requirements for your program during implementation.
## Set up FBO funding
Method confirms whether you push funds to the FBO Account or Method pulls funds from your verified disbursement Account.
Method provides the required Account IDs, funding instructions, and operating schedule.
Confirm that `payment` is in the liability Account's `products` before you create a Payment.
Call [`POST /payments`](/reference/payments/create). For push funding, use the FBO-backed Account as `source`. For pull funding, use the verified disbursement Account as `source`.
For push funding, send funds by ACH or wire. For pull funding, Method initiates the ACH debit after you create the Payment.
Seeing `payment` in an Account's `products` list means that the Account is eligible for Payments. Method checks eligibility and your team's setup again when you create each Payment. A listed product does not guarantee that the create request will succeed.
## Reconcile
1. For push funding, compare the [Managed Account](/reference/managed-accounts/overview) `available_balance` with `payments.outstanding_summary.push_daily`. Use `payments.outstanding_itemized.push_daily` to identify the included Payments.
2. For pull funding, use `payments.outstanding_summary.pull_daily` and `payments.outstanding_itemized.pull_daily`. Retrieve each Payment to check `source_status`, `source_settlement_date`, and `source_trace_id`.
3. Use [`POST /reports`](/reference/reports/create) for an on-demand report, or configure [Report Schedules](/reference/report-schedules/overview) to generate the reports on each banking day.
4. For push funding, use `team_fbo_balance.created.previous_day` and `reversals.push_funded.previous_day` for prior-day activity.
5. Consume `payment.create` and `payment.update` [webhooks](/reference/webhooks/overview). Treat `sent` as the terminal status for successful Payment delivery, and continue to handle later status changes.
## Handle returned funds
Returned funds go to the Payment's `reversal_account`. If you set `reversal_account` in `POST /payments`, that Account is used. Otherwise, Method uses your team's configured reversal Account when one is set, or the Payment's source Account.
For push funding, returned funds that go to the FBO-backed source Account can fund later Payments. If Method must configure another reversal Account, contact Method and provide that Account's ACH details.