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Multi-Leg Transaction Service

What is the Multi-Leg Transaction Service?

The RocketKOR Multi-Leg Transaction (MLT) service allows you to easily move money between Financial Accounts within the same Business Account.

In a multi-leg transaction (MLT), the move money operation is divided into two stages. The first stage, called the “funding leg”, is used to obtain the required funds. The second stage, called the “disbursement leg”, is used to disburse these funds. A separate transaction is created for each of these stages.

Like a single-leg transaction (SLT) request, an MLT request can be executed immediately or scheduled for a future date and time.

How Do Multi-Leg Transactions Work?

An MLT uses a “funding leg” and a “disbursement leg” to move money between Financial Accounts.

In the funding leg, the required funds are sourced from the specified debit Financial Account.
In the disbursement leg, these funds are disbursed to the specified credit Financial Account.

The MLT service creates a separate transaction for each leg: a Request transaction is created for the funding leg and a Send transaction is created for the disbursement leg.

For example, let’s say you want to obtain funds from a Customer Financial Account (the funding leg) and disburse these funds to a Business Financial Account (the disbursement leg). The MLT would include two transactions: a Request (debit) transaction for the funding leg and a Send (credit) transaction for the disbursement leg.

The funds required for the individual transactions are managed by an Escrow Financial Account belonging to the Business Account. This Financial Account is used to hold the funds secured from the funding leg transaction until they are needed for the disbursement leg transaction. The Escrow Financial Account tracks and maintains running balances of the total funds secured and disbursed for the request.

The following diagram provides an overview of the MLT service.

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Multi-Leg Transaction (MLT) Service

The MLT service consists of the following components:

Multi-Leg Transaction Request The MLT request creates and tracks the individual transactions required to complete the request. This includes a funding leg transaction and a disbursement leg transaction.
Funding Leg A Request (debit) transaction is created for the funding leg. This transaction is used to obtain funds from the debit Financial Account specified in the request.
Disbursement Leg A Send (credit) transaction is created for the disbursement leg. This transaction is used to disburse funds to the credit Financial Account specified in the request.
Business Escrow Financial Account The source funds obtained from the funding leg transaction are transferred to the Business Escrow Financial Account. These funds are then used for the disbursement leg transaction.

MLT Request Life Cycle

Use the RocketKOR APIs or Portal to create a new MLT request. The request defines how RocketKOR will move money between Financial Accounts.

The following diagram shows the process to execute an MLT request.

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Multi-Leg Transaction (MLT) Request Life Cycle

1. Create the MLT Request

Use the RocketKOR APIs or Portal to create the MLT request. The request contains two main sections:

Details for the funding leg (debit) transaction. ACH is used for this transaction.
Details for the disbursement leg (credit) transaction. Any move money solution can be used for this transaction (ACH, Wire, or Push to Card).

2. Create the Request Transaction

The MLT service creates a Request transaction to obtain funds from the debit Financial Account. These funds are transferred to the Business Escrow Financial Account.

3. Track the Amount Funded

The Escrow Financial Account tracks and maintains a running balance of the total funds secured for the MLT request.

4. Create the Send Transaction

The MLT service creates a Send transaction to disburse the funds from the Escrow Financial Account to the credit Financial Account.

5. Track the Amount Disbursed

The Escrow Financial Account tracks and maintains a running balance of the total funds disbursed for the MLT request.

6. Complete the Multi-Leg Transaction Request

The MLT request is complete when both the funding and disbursement leg transactions are completed successfully. If one of the transactions fails, you can choose to:

Redistribute the funds that have been collected in the Escrow Financial Account.
Cancel the MLT request and move all related funds from the Escrow Financial Account to a Business Financial Account.