An account is an object that has the ability to hold, send, and receive funds along with ledgering transactions and credit. Accounts at Column are unique and powerful as they can both serve as a dynamic and real-time ledger, while also containing properties of a normal bank account.
Accounts can be tailored to your individual use case — whether individual, FDIC-insured DDA accounts or ledgered accounts for your credit program. If you're familiar with legacy sponsor banks, these can be similar to sub-accounts under an FBO account. What's different is our accounts are built to be flexible to give you as much control as possible, are unconstrained where entities can have any number of accounts and are designed for transparency so you have full visibility into your business.
An account can have three balances
available_balance: This balance is the amount of money that is available to spend. If the account is not enabled for overdrafts, any requests to move money above this number will fail.
pending_balance: The total amount of transfers that are in a pending state. These transfers will affect the
available_balanceunless they are canceled prior to completion.
locked_balance: Only applicable for root accounts. The locked balance is posted on the account but cannot be withdrawn.
Accounts can be enabled for overdrafts. However, accounts can only be overdrafted by the amount in the overdraft reserve account. The total amount of overdrafts on a platform is represented by the
locked_balance on the overdraft reserve root account.
See the overdraft section for more details.
Accounts whose parent is a Root Entity have special properties. The funds in these account are directly owned by yourself or your company.
When you create your platform, two important root accounts will be created automatically.
- Overdraft reserve account: You can create
overdraftableaccounts which means they can be negative on the ledger. However, they need an associated overdraft reserve account that covers those funds. This is that account. Learn more here.
- Program reserve account: If you want to originate ACH debits, you'll need to hold a certain % of your volume in your program reserve account. Your reserve requirement is determined by Column. For self service use cases, Column requires you to hold your 60-day ACH debit volume in your program reserve.
- Rewards account: when you provide rewards or other incentives to customers or users, you can have an operating account to fund payments to those customers.