On December 1, we're launching your Paystand Operating Account, giving you more flexibility and control over how you manage and use the money you collect.
With your new Operating Account, you can:
- Control your cash with more flexibility. Keep collections in your Operating Account, access funds sooner for business expenses, or withdraw to your bank whenever you choose.
- Unlock agentic expense management. Your Operating Account can now natively fund Paystand Expense, bringing together virtual Visa cards, employee spending controls, AI-powered receipt matching, and 1% cash back on eligible Paystand card purchases.
- Connect more of your financial operations. Upcoming capabilities include early withdrawals, supplier payments, AP automation, multi-currency accounts, FX, and cross-border payouts, all from your Operating Account.
What's Changing December 1
- Deposits: Your collected funds will be deposited into your Paystand Operating Account instead of automatically transferring to your bank.
- Withdrawals: To move funds to your bank, you'll initiate withdrawals from your Paystand dashboard. Your existing payment methods, settlement schedules, and hold times remain unchanged.
- ERP reconciliation: Deposits will be reconciled to the new Operating Account that Paystand configures in your ERP on your behalf.
What We Need From You
To prepare for December 1:
- Complete ownership verification, if needed. If you've already submitted your beneficial ownership information to Paystand, no further action is needed. Otherwise, submit your information here.
- Confirm your account access. Existing Paystand dashboard Admins will automatically receive Operating Account access. If you don't have an Admin, reply with the name and email address of the person who should have access.
- Watch for ERP setup instructions. Paystand will coordinate your ERP configuration and contact you if we need information or assistance from your ERP administrator.
How It Works
Your Operating Account
Starting December 1, a new Operating Account tab in your Paystand dashboard lets you:
-
View your funds. Check your balances and transaction history. You'll see two balances:
- Ready to use: Funds available for Expense funding, including those under bank withdrawal holds.
- Ready to withdraw: Funds available for bank transfers after applicable holds.
- Example: If you have $50,000 Ready to use, including $15,000 still under bank hold, you can transfer $50,000 to Expense or withdraw $35,000 to your bank.
- Withdraw to your bank. Transfer available funds to your bank on file.
- Fund Paystand Expense faster. Move funds directly to Expense, including money still under bank withdrawal holds
- Manage your bank account. Update your linked bank account under Operating Account → Settings.
Paystand Dashboard changes: The existing Withdrawals tab will be removed, as you will do withdrawals from the operating account tab, and bank account settings will move to Operating Account → Settings. Everything else stays the same.
Paystand Expense
Your Operating Account includes access to Paystand Expense, which you can open directly from your Paystand dashboard.
Basic Features:
- Virtual Visa cards for employee spending
- Employee card requests, approvals, and spending limits
- AI-powered receipt matching and transaction reporting
- 1% cash back on eligible Visa card purchases
Advanced features, including budgets, reimbursements, automated coding and ERP synchronization for card spending, are available as paid upgrades.
How Your Accounting Works
Your payments will continue to be automatically applied to invoices and deposits reconciled in your ERP.
Starting December 1, Paystand will use a new clearing account to process payments, and deposits will be reconciled to your Paystand Operating Account instead of your external bank account.
Paystand will configure three accounts in your ERP:
- Pending Cash Application: Records individual payments before they're applied to invoices.
- Paystand Operating Account: Records and reconciles your collected funds.
- Paystand Expense Funding: Tracks funds transferred to and from Paystand Expense.
How transactions are recorded:
- Customer payments: Recorded through Pending Cash Application and applied to invoices.
- Deposits: Reconciled to your Operating Account.
- Bank withdrawals: Recorded as transfers from your Operating Account to your bank.
- Expense funding: Recorded as transfers between your Operating Account and Expense funding account.
- Cash back: Recorded in your designated income account.
We'll handle the ERP setup wherever possible. If additional permissions or assistance are needed, we'll contact you directly.
Frequently Asked Questions
Will anything change for my customers?
No. Your existing payment methods and customer payment experience remain unchanged.
Will my settlement schedule or hold times change?
No. Your existing settlement schedules and bank withdrawal hold times remain unchanged.
Can I still withdraw money to my bank?
Yes. An Admin can manually withdraw available funds from the Paystand dashboard whenever you choose. Automatic withdrawals will no longer occur, and there’s no current plan to bring them back.
Can I keep automatic withdrawals for my account?
No. Automatic withdrawals are not available on the Operating Account. Your Paystand Admin can manually initiate a withdrawal in a few clicks.
Can I automate withdrawals through an API?
No, this functionality is not available.
I have multiple subsidiaries. How do withdrawals work?
Each subsidiary has its own Operating Account. An Admin withdraws from each subsidiary separately.
Will withdrawal timelines change? Are there cutoffs, limits or fees? There are no limits or fees. Withdrawals follow the same bank timing as automatic withdrawals did before. Withdraw before 2 p.m. PT, and the money usually reaches your bank the next business day. Sometimes it takes a day longer, depending on your bank.
How much can I withdraw? Does that amount change over time?
You can withdraw your full Ready to Withdraw balance. Ready to Withdraw is the money that has cleared your bank hold.
Who can see and use the Operating Account? Only your current Paystand dashboard Admins can see the Operating Account, withdraw funds to your bank or move money to Paystand Expense.
What if I want additional admins on the paystand dashboard and operating account, how do I set that up? An existing Admin adds the user in the Paystand dashboard with the Admin role, and they see the Operating Account automatically.
What accounts will Paystand create in my ERP?
Paystand creates three accounts: Pending Cash Application, Paystand Operating Account and Paystand Expense Funding. Your Undeposited Funds and bank accounts stay as they are.
Will the setup change my existing deposit settings? Yes, Paystand will deposit funds into and reconcile the deposit against the Paystand Operating account, not your bank account.
Will the setup change my bank accounts in the ERP? We are adding 3 bank accounts to your ERP. We are not changing any existing bank accounts.
Where can I learn how money moves in my ERP? See the “How your accounting works” section of the Merchant FAQ and the product guide.
Do I need to make changes in my ERP?
Paystand will coordinate the setup by API wherever it has access. Paystand will contact you if your ERP administrator needs to take action.
My lender uses my bank account to track incoming payments. What should I do? Your revenue now lands in your Operating Account until you withdraw it. Talk with your lender before December 1 about how to show them your Operating Account activity.
What’s included with Paystand Expense, and what’s a paid upgrade?
Basic:
- Single-use, multi-use and recurring virtual Visa cards
- Employee card requests
- Approval rules and spending limits
- Email receipt reminders and AI receipt matching
- Financial overview and transaction exports
- 1% cash back on eligible Visa card purchases
- Paystand Admins are Admins in Paystand Expense
- Paystand Clerks are Requestors in Paystand Expense
- Paystand Expense admins can invite employees to be requestors or approvers via email in the dashboard
Advanced:
- ERP sync for card spending and reimbursements
- Slack and Teams workflows
- Physical cards
- Merchant category controls on cards
- Advanced coding rules
- Budgets
Need help? Contact your Paystand account manager.
Need help? Contact your Paystand account manager.
Paystand is a financial technology company, not a bank.