The PEXA Source Account is available to eligible PEXA Subscribers who do not already operate a trust account with a bank that is integrated with PEXA. A list of banks who are payment-integrated with PEXA may be found here. It enables practitioners to provide funds to an electronic settlement where they are representing an incoming proprietor. It is important to note that the Source Account is not available for use when acting in any other role to provide funds to settlement.
3 days before settlement
PEXA’s Service Charter (section 2.4) requires cleared funds to be available in PEXA’s Source Account no fewer than three business days before settlement day.
If cleared funds are not available on time, parties may be impacted by a delay in settlement, potentially leading to stress for practitioners and their clients.
What to do
You may consider over-estimating the amount of funds required to be transferred to the Source Account and recommending to your client that they transfer the estimated amount, with additional funds to be disbursed back to the client via the Financial Settlement Schedule.
Note, the sum deposited into the account must match the Source Line Item created in PEXA. If not, funds will be unavailable for settlement. Further, funds can only be received electronically. Cheques and cash are not accepted.
PEXA understands that there may be times when a practitioner’s client doesn’t complete the transfer of funds within the required timeframe for reasons outside of the practitioner’s control. In the unavoidable circumstance that funds are transferred into the Source Account on the day of settlement, there is no guarantee that they will be available for settlement.