Once your company is live with Benepass, a financial account will be set up on your behalf. This article will review what financial accounts may be open, why they are required to work with Benepass, and how to access statements and other information.
How Benepass account configurations work
Employers who work with Benepass enable their employees to spend their benefit funds simply and easily through direct card transactions or reimbursements. That spending is funded through financial asset accounts opened and held for benefit of your company by Benepass.
Pacific West Bank
All Benepass clients will have a "for benefit of" (FBO) account opened on their behalf and held at Pacific West Bank, Member FDIC. All incoming platform funding payments from your company to Benepass will be deposited into this account.
- If benefits allow for direct ACH reimbursement, payment to employees will be debited directly from this account.
- If benefits use Flex cards, direct payments to merchants will be debited from this account.
- If benefits also allow Stripe cards, transfer payments to Stripe will be debited from this account.
Stripe
If benefits utilize Benepass cards issued by Stripe, funds will additionally be held on your behalf with Stripe to support ongoing direct card transactions.
Payments to merchants will be debited directly from the balance held with Stripe. Refunds will be credited back to the same balance.
Benepass will monitor and maintain a healthy account balance between Stripe and Pacific West Bank on your behalf, and no action is needed from your team to ensure funds move between accounts correctly.
Common questions
Why is it required for an account to be held on my company's behalf?
To support ongoing employee spending, funds must be available at all times to prevent declines or delays and ensure that your company can fulfill your financial obligations to employees. Ensuring consistent funding, as well as the ongoing management of company funds between platforms, requires earmarked funds. Benepass is pleased to offer full oversight over your company's platform funding process, or you may opt to self-manage the process.
What does it mean to have an FBO account?
A "for benefit of" account is a bank account that allows a company to manage funds for another entity or person without taking direct possession of those funds. In this case, Benepass manages the funds set aside for your benefits program on your behalf. Benepass utilizes an FBO configuration to ensure funds are earmarked for company benefit use while also staying maximally compliant with state and federal money transfer laws.
How do I access bank statements or account details?
All banking information, account statements, and more will be accessible in the Benepass Admin Dashboard. Benepass is happy to provide Admin Dashboard access to any Finance team members who need it.