Bank-Managed FBO Accounts for Business Payments

Secure custody by the bank. Full ownership and visibility remain yours.

✔ Check Payments
Managed check issuance and fulfillment
✔ ACH Transfers
Electronic disbursements from your FBO account
✔ Digital Cards
Instant payout options with bank-managed custody

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Checkflo provides an enterprise-grade For Benefit Of (FBO) bank account service that lets your organization fund and manage multiple programs or disbursement types under a regulated banking framework. Your funds stay in your name, the bank maintains custody, and Checkflo can support or manage fulfillment based on your needs.

Two Ways to Use FBO Accounts with Checkflo

FBO Accounts as a Service

Use your FBO account directly for issuing checks, ACH payments, or digital cards. The bank manages custody and compliance while you stay in control of program operations.

Integrated FBO + Check Fulfillment

Let Checkflo handle the entire process — funding, printing, mailing, and reconciliation — all within your bank-managed FBO structure.

How the FBO Account Structure Works

Bank Custody (Partner Bank)
Regulated oversight & ledgering
Funding FBO Account
Client-owned funds • Deposits & top-ups
Operating FBO Account
Controlled disbursements • Reconciliation
Checks ACH Digital cards
Dormant / Unclaimed Funds
Returned to Bank Custody for compliance handling

Ownership remains with your company. The bank manages custody, movement, and unclaimed funds compliance through a transparent, auditable process.

Why Businesses Choose a Bank-Managed FBO Model

  • Maintain fund ownership — Funds remain in your name and are never commingled.
  • Bank custody and compliance — Ensures compliance with AML and KYC standards through verified banking oversight.
  • Segregated program management — Sub-accounts for clients, divisions, or programs with clear ledgers and reporting.
  • Audit-ready oversight — Every transfer, issuance, and reconciliation is logged and exportable for audits.
  • Reduced operational risk — The bank administers liability for unclaimed checks, while you maintain full visibility.
  • Rapid deployment & scaling — Go live quickly with pre-built infrastructure and scale programs or operations without adding internal complexity.

Integrated FBO + Prefunded Check Fulfillment

Once your FBO account is established, you can extend it into a fully managed check program. This option allows Checkflo to take care of daily operations — from funding to printing and mailing — while you retain oversight and control through your dashboard.

  1. Fund your FBO account at the partner bank.
  2. Submit payment data through Checkflo’s dashboard or file upload.
  3. Issue checks from the operating FBO account. Checkflo verifies, prints, and mails.
  4. Track and reconcile using Checkflo’s delivery status updates and reporting tools.
  5. Handle unclaimed checks with the bank’s custodial process under applicable regulations.

Compliance and Security

  • Bank custody aligned with GLBA, BSA/AML, and OFAC screening.
  • SOC 2 Type II and ISO 27001 environments.
  • Comprehensive audit trail and unclaimed-property reporting managed by the bank.
  • Encryption, role-based access, and dual approvals.

Example Use Case

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A nationwide platform funds its FBO account weekly to issue refund checks on behalf of clients. Checkflo processes payments from the operating FBO account with delivery tracking and reconciliation in real time. Uncashed checks remain under bank custodianship and, after the dormancy period, are reported to the appropriate state authority. The business stays compliant without taking on extra internal work.

Ideal For

  • Enterprises issuing payments on behalf of customers
  • Platforms offering embedded disbursements or payouts
  • Regulated industries: gaming, healthcare, insurance, legal, financial
  • Organizations needing segregated, auditable programs

Key Advantages

  • Bank-verified account management
  • Transparent funding, issuance, and reconciliation
  • Simplified handling of unclaimed checks
  • Automated reporting and dual approvals
  • Works with Checkflo document attachments and overnight delivery

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