Global Treasury Account

A Global Treasury Account is a single USD account that funds your operations in several countries. You fund it with wire ins, use its balance to pay out through your linked country accounts, and withdraw funds with wire outs. Instead of managing a separate balance in each country, you manage one balance and reconcile one consolidated position per day.

This article explains how the Global Treasury Account works and describes its auto-sweeping feature. It is intended for finance and treasury teams, and for developers who integrate wire ins, payouts, and wire outs with a Global Treasury Account.

Requirements

• The Global Treasury Account and every linked country account must be in USD.
• Local currency accounts (ARS, BRL, CLP, MXN, and others) can't be linked to a Global Treasury Account.
• Each country account runs in either Local mode or Global mode, never both. If you need both behaviors in the same country, use two separate accounts.
• The Global Treasury Account must be set up by Localpayment. See Set up a Global Treasury Account.

How the Global Treasury Account works

• Funding. You add funds to the Global Treasury Account with a wire in.
• Linked country accounts. Each country where you pay out has its own USD account, linked to the Global Treasury Account in Global mode.
• Payouts. Payouts from every linked country are funded by the Global Treasury Account balance.
• Withdrawals. You withdraw funds from the Global Treasury Account with a wire out, up to its projected balance.
• Settlement. Once a day, the auto-sweeping feature settles each country account against the Global Treasury Account.

Auto-sweeping

Auto-sweeping, also known as autofunding, is the feature that keeps your linked country accounts funded by the Global Treasury Account. Once a day, Localpayment transfers the net amount of each country from the Global Treasury Account to that country account through internal transfers, so every country account returns to zero.

During the day

• Country accounts go negative. Each payout reduces the balance of its country account, which usually stays below zero until the daily sweep. This is the expected behavior.
• Local balance is used first. If a country account holds its own balance, Localpayment uses it before drawing on the Global Treasury Account.
• Payouts are checked against the Global Treasury Account. Before each payout is processed, Localpayment validates that the Global Treasury Account has enough projected balance to cover it.
• Wire outs are checked against the projected balance. If you request a wire out from the Global Treasury Account and the amount exceeds the projected balance, the request is rejected.

Daily sweep

The sweep runs every day at 00:00 UTC:

1. Payout processing pauses for a few moments.
2. Localpayment creates internal transfers from the Global Treasury Account to each country account for the net amount of the day.
3. Every country account returns to a zero balance.
4. The Global Treasury Account balance decreases by the total net amount of all linked countries.

The next day, the cycle starts again from zero.

Projected balance

During the day, your real available balance is the projected balance:

projected balance = Global Treasury Account balance − payouts processed today in all linked countries

Payouts funded by a country account's own balance don't reduce the projected balance. Only the amount drawn from the Global Treasury Account does.

Example

Example Company S.A. starts the day with USD 100,000 in its Global Treasury Account. Its Brazil account also holds USD 5,000 of its own balance. During the day it pays out USD 30,000 in Mexico, USD 20,000 in Colombia, and USD 15,000 in Brazil.

All values are in USD.

• In Brazil, the USD 5,000 local balance is used first, so only USD 10,000 is drawn from the Global Treasury Account.
• The projected balance during the day is USD 40,000 (100,000 − 30,000 − 20,000 − 10,000).
• If the company requests a USD 50,000 wire out at 18:00 UTC, the request is rejected. A wire out of up to USD 40,000 is accepted.
• After the sweep at 00:00 UTC, the country accounts return to zero and the Global Treasury Account balance is USD 40,000.

Global Consolidation report

The Global Consolidation report summarizes the day of your Global Treasury Account:

• Open balance: the Global Treasury Account balance at the start of the day.
• Transactions by country: the payouts processed in each linked country account.
• Projected balance: the resulting balance after the payouts of the day.

If the report is enabled for your account, you can schedule its delivery by email or SFTP from Notifications Reports in the Business Portal. Contact your Localpayment account manager if you don't see it in the report list.

Set up a Global Treasury Account

The Global Treasury Account and auto-sweeping are configured by Localpayment. To set them up, contact your Localpayment account manager and specify which country accounts to link to your Global Treasury Account.

Frequently asked questions

Next steps