Understanding deposits

Understanding deposits in the Rainforest ecosystem

In the Rainforest ecosystem, a Deposit is the movement of funds to or from a Merchant. The merchant provides where they want their funds to be deposited to in merchant onboarding.

A merchant will receive a deposit on each US banking day, consisting of all payments (card, ACH, refunds, chargebacks, ACH returns, etc.) that are available for deposits. Deposit timing is dependent on the payment method type and merchant configuration.


Money movement


When Rainforest processes a payment from a user, the billing fees are deducted from the merchant's daily funding deposit and added to the platform's residuals. Fees on payments are determined by the billing profile assigned to the merchant. The platform's residuals will be deposited to the platform at the beginning of the next month.

On a $100 payin, for a merchant with a billing profile configured with 3% + $0.30, there are $3.30 in fees deposited to the platform during residuals, and a net amount of $96.70 deposited to the merchant in the daily funding deposit.

On a $100 payin, for a merchant with a billing profile configured with 3% + $0.30, there are $3.30 in fees deposited to the platform during residuals, and a net amount of $96.70 deposited to the merchant in the daily funding deposit.


Statement descriptors


Deposits are sent to merchants and platforms. Merchants will receive daily funding deposits and separate billing deposits if on gross billing. Platforms may receive a funding deposit for Platform Fees if utilizing platform amount splits and billing deposits for Residuals.

These deposits will appear on the merchant or platform's bank account statement with the following syntax:

TypeStatement DescriptorExample
Platform Funding DepositRAINFOREST {8 alpha-numeric value}-aRAINFOREST hC8c411H-a
Platform Billing DepositRAINFOREST {8 alpha-numeric value}-RRAINFOREST wEI8uhNz-R
Merchant Funding Deposit{Platform Name} {8 alpha-numeric value}-dPLATFORM g8CSfJeD-d
Merchant Billing Deposit{Platform Name} {8 alpha-numeric value}-bPLATFORM HxFpaFqK-b

Statuses


The deposit status is the descriptor of the current status in the life cycle of the deposit.

StatusDescription
PROCESSINGDeposit is processing and funds have been initiated.
IN_REVIEWDeposit has been flagged for risk review.
SUCCEEDEDDeposit has completed processing and the funds were deposited to the merchant.
FAILEDDeposit unsuccessfully attempted to process.

Sandbox simulation


In Production, deposits are automatically processed for your merchants. Deposits will include payments that are ready to be released to your merchant based on deposit timing per payment type. In the Sandbox environment, payments and deposits do not move on an automatic schedule, which allows you to have move control over testing.

In Sandbox, you can simulate the processing of a merchant deposit via the simulate merchant deposit endpoint. Simulating a deposit will do the following:

  1. Transition all the merchant's payments with the status of Processing to Succeeded.
  2. Create a deposit with the status of Processing.

Once the payments are in the Succeeded status, actions such as refunding can be taken on the payins.

You can also simulate the deposit status change from Processing to Succeeded via the simulate deposit status change endpoint. This will allow you to test all webhooks for payments and deposits that you will receive in Production.