SMART-Disburse Payable with Single Payee and multiple Endorsers

Insurance Case

Claimant: Zac Watson

Location: San Francisco

Property type: Rented Apartment

Insurance type: Rental Insurance

Property owners: Jordan Wallace and Nicole Wallace

On July 10, 2023, Zac Watson’s rented apartment faced serious water damage due to a plumbing issue. The water affected the living room’s hardwood floors, walls and personal items like electronics and furniture.

Zac Watson filled the insurance claim. After an assessment by insurance adjusters a payout amount was determined to cover the damage.

The payment is meant to cover the repair of structural damage to the property (including flooring and walls), replacement or repair of Zac’s personal belongings and any temporary relocation expenses he might incur during the repair process.

Endorsement Requirement

Given the nature of the rental agreement and the extent of damage the apartment owners Jordan Wallace and Nicole Wallace are required to endorse the insurance payout.

They engage in ensuring that the repairs are addressed as per the property standards. However, they are only acting as endorsees and will not be the final recipients of the payment.

Step 1: Gather Payee’s and Endorsee’s Information

Payee Details

Payee Name: Zac Watson

Social Security Number (SSN): XXXXX6574

Date of Birth: May 13, 1989

Email: zac.watson@example.com

Phone Number: 757-681-8751

Address: 2659 Locus View Drive, San Francisco, CA, USA, 94108

Endorser’s Details (#1)

Endorsee Name: Jordan M Wallace

Social Security Number (SSN): XXXXX2187

Date of Birth: August 23, 1975

Email: jordan.wallace@example.com

Phone Number: 415-955-7984

Address: 215 Lindale, San Francisco, CA, USA, 94107

Endorser’s Details (#2)

Endorsee Name: Nicole Wallace

Social Security Number (SSN): XXXXX1543

Date of Birth: January 7, 1979

Email: nicole.wallace@example.com

Phone Number: 510-564-4844

Address: 215 Lindale, San Francisco, CA, USA, 94107

Construct the “Payee” section of the API submission using the Payee’s and Endorsees information.

This section will contain the details of three individuals involved in the disbursement process.

Primary payee. The first Payee is the primary recipient of the payment. They will be provided with a SMART-Disburse token to access and complete the payment process. Additionally, as a part of the security validation, they will be presented with a personal security question based on the last four digits of their SSN,

Endorser #1. The second individual does not receive a direct payment but is required to endorse it. They have the isEndorseOnly set to true, indicating their role as an endorser. The amount is set to 0, indicating no direct payment. They will receive a SMART-Disburse link with the security question based on the last four digits of their SNN.

Endorser #2. Similarly, the third individual acts as an endorser with isEndorseOnly set to true and amount is set to 0. They will receive a SMART-Disburse link with personal security questions too.


    "payees": [
        {
            "partyReferenceId": "{{$guid}}",
            "firstName": "Zac",
            "middleName": "",
            "lastName": "Watson",
            "businessName": "",
            "isBusiness": false,
            "socialSecurityNumber": "764256574",
            "dateOfBirth": "1989-05-13",
            "emailAddress": "zac.watson@example.com",
            "phoneNumber": "7576818751",
            "smartDisburse": {
                "isEndorseOnly": false,
                "isPrimary": true,
                "amount": 2600.00,
                "securityQuestions": [
                    {
                        "question": "What are the last 4 digits of your SNN?",
                        "answer": "6574"
                    }
                ],
                "tokenDeliveryMethods": {
                    "emailAddress": "zac.watson@example.com",
                    "smsPhoneNumber": ""
                }
            },
            "address": {
                "addressLine1": "2659 Locus View Drive",
                "addressLine2": "",
                "addressLine3": "",
                "townName": "San Francisco",
                "country": "USA",
                "countrySubDivision": "CA",
                "postCode": "94108"
            }
        },
        {
            "partyReferenceId": "{{$guid}}",
            "firstName": "Jordan",
            "middleName": "M",
            "lastName": "Wallace",
            "businessName": "",
            "isBusiness": false,
            "socialSecurityNumber": "572412187",
            "dateOfBirth": "1975-08-23",
            "emailAddress": "jordan.wallace@example.com",
            "phoneNumber": "7572119665",
            "smartDisburse": {
                "isEndorseOnly": true,
                "isPrimary": false,
                "amount": 0.00,
                "securityQuestions": [
                    {
                        "question": "What are the last 4 digits of your SNN?",
                        "answer": "2187"
                    }
                ],
                "tokenDeliveryMethods": {
                    "emailAddress": "jordan.wallace@example.com",
                    "smsPhoneNumber": ""
                }
            },
            "address": {
                "addressLine1": "215 Lindale",
                "addressLine2": "",
                "addressLine3": "",
                "townName": "San Francisco",
                "country": "USA",
                "countrySubDivision": "CA",
                "postCode": "94107"
            }
        },
        {
            "partyReferenceId": "{{$guid}}",
            "firstName": "Nicole",
            "middleName": "",
            "lastName": "Wallace",
            "businessName": "",
            "isBusiness": false,
            "socialSecurityNumber": "945321543",
            "dateOfBirth": "1979-01-07",
            "emailAddress": "nicole.wallace@example.com",
            "phoneNumber": "7572119665",
            "smartDisburse": {
                "isEndorseOnly": true,
                "isPrimary": false,
                "amount": 0.00,
                "securityQuestions": [
                    {
                        "question": "What are the last 4 digits of your SNN?",
                        "answer": "1543"
                    }
                ],
                "tokenDeliveryMethods": {
                    "emailAddress": "nicole.wallace@example.com",
                    "smsPhoneNumber": ""
                }
            },
            "address": {
                "addressLine1": "215 Lindale",
                "addressLine2": "",
                "addressLine3": "",
                "townName": "San Francisco",
                "country": "USA",
                "countrySubDivision": "CA",
                "postCode": "94107"
            }
        }
    ]

 

Step 2: Prepare Payable Details

Organize the payment breakdown and relevant memos.

Payment Details

Net Total: $2600.00

Currency: USD

Payment Terms: NET30

Due Date: August 31, 2023

Effective Date: July 20, 2023

Memo: Payment for damages related to the Rental Insurance Case: Flood Damage Evaluation, San Francisco.

Remittance Information

  • Floor Repair/Replacement: $650.00

  • Wall repair: $400.00

  • Electronics: $350.00

  • Furniture: $500.00

  • One-bedroom apartment for two months at $350.00/month: $700.00

 

Organize the payment breakdown and relevant memos.


    {
    "payableReferenceId": "{{$guid}}",
    "recordNumber": "{{randomNum}}",
    "netTotal": 2600.00,
    "isoCurrencyCode": "USD",
    "payableTerms": "NET30",
    "payableDueDate": "2023-08-31",
    "payableEffectiveDate": "2023-07-20",
    "payableApprovalStatus": 2,
    "memo": "Payment for damages related to the Rental Insurance Case: Flood Damage Evaluation, San Francisco.",
    "remittance": {
        "grossTotal": 2600.00,
        "grossDiscount": 0.00,
        "tax": 0.0,
        "lineItems": [
            {
                "unitPrice": 650.00,
                "lineItemTotal": 650.00,
                "discount": 0.00,
                "quantity": 1,
                "lineNumber": 1,
                "item": "Floor Repair/Replacement",
                "description": "",
                "memo": ""
            },
            {
                "unitPrice": 400.00,
                "lineItemTotal": 400.00,
                "discount": 0.00,
                "quantity": 1,
                "lineNumber": 2,
                "item": "Wall repair",
                "description": "",
                "memo": ""
            },
            {
                "unitPrice": 850.00,
                "lineItemTotal": 850.00,
                "discount": 0.00,
                "quantity": 1,
                "lineNumber": 3,
                "item": "Electronics and furniture",
                "description": "",
                "memo": ""
            },
            {
                "unitPrice": 350.00,
                "lineItemTotal": 700.00,
                "discount": 0.00,
                "quantity": 2,
                "lineNumber": 4,
                "item": "One-bedroom apartment for two months",
                "description": "",
                "memo": ""
            }
        ]
    },
    "paymentInfo": {
       …
        },
        "documents": []
    },
    "payees": [
        …
    ]
}       

 

Step 3: Provide Payment Details

Specify the details of the payment method and provide all the settings related to the disbursement process.

Given the need for the endorsement, the SMART-Disburse method of payment has been selected. There will be no alternative (fallback) payment option for the expired disbursement.

The available method of payment for the Payee include ACH, MC Send, Check and Virtual Card.

The origination account reference identifier of the insurance company will also be included in the payload.

Collect all the provided details and place them in the paymentInfo section of your API request:


    "paymentInfo": {
        "originationAccountReferenceId": "d117d79f-44e3-454f-a161-10a93d4ae91a",
        "destinationFinancialInformation": {
            "isoCurrencyCode": "USD",
            "bankAccountDetails": {
                "nameOnAccount": "",
                "bankAccountNumber": "",
                "bankRoutingNumber": ""
            },
            "paypalDetails": {},
            "cardDetails": {},
            "methodOfPayment": 5,
            "foreignExchangeInfo": {
                "originationIsoCurrencyCode": "USD",
                "destinationIsoCurrencyCode": "USD"
            }
        },
        "smartDisburseDetails": {
            "templateId": 1,
            "expirationDate": "2023-09-22T13:42:54+01:00",
            "applyPaymentFallbackToDeliveryMethod": false,
            "behaviors": [
                "ACH",
                "MCSend",
                "RTP",
                "Check",
                "VirtualCard"
            ]
        }
    },

 

Step 4: Submit the API Request

When the payload data is prepared, send it to the appropriate API Endpoint to initiate the disbursement.

Endpoint: /Payables/

HTTP Method: POST