July 3, 2024

Financial Accounts Updates

On July 10th (Wednesday), Lithic will introduce the following changes.

1. A new field, is_for_benefit_of, will be introduced to the Financial Accounts object . The purpose of this new field is to allow both Lithic and our customers to better identify financial account attributes. This change will be reflected on both old and new accounts based on the following logic:
   1. All program-level owned financial accounts will have is_for_benefit_of set to false.
   2. All financial accounts created for end-user accounts will have is_for_benefit_of set to true. This behavior can be modified depending on the purposes of your program. Reach out to your Customer Success or Implementation Manager to discuss.
2. As part of an ACH transaction originated via the Lithic platform, a “company name” is included as part of the ACH file sent to NACHA. This is the company name that the receiving depository financial institution (typically the bank receiving the origination) sees in the ACH file that they receive as a result of the origination created by Lithic. We will be updating the “company name” to be the legal_business_name on file that is associated with the business account holder.
   1. Note: If the Legal business name exceeds the NACHA defined 22 character limit, we will strip excess characters.

If you have any questions or concerns about this change, please reach out to [email protected].