Source of funds and purpose of payment: the documents a bank asks for on an incoming international payment
An incoming payment is held and the bank asks what it is for. Banks check international transfers, and a review usually asks for the payment's purpose and source of funds in writing. The usual pack is a contract, the matching invoice and evidence the work was delivered. Unanswered requests can send funds back to the sender.
Why a payment gets reviewed: new counterparty, unusual amount, new country
Banks and payment providers monitor the transactions on the accounts they hold. Many incoming payments pass without manual review. Some are stopped for a person to review, usually because something about the payment differs from what the account normally receives.
- A new counterparty. The first payment from a client the account has not received from before.
- An unusual amount. A payment much larger than the account's usual pattern, or several payments that together are.
- A new country. Funds arriving from a jurisdiction that the account has not dealt with, or one the bank treats with extra care.
- A mismatch. A payer name that differs from the name on the invoice, or a payment reference that does not explain the transfer.
Correspondent banks on an international route run their own screening as well, so a question can come from a bank that neither party deals with directly. The request then reaches the beneficiary through its own bank. In each case the reviewer wants to understand the payment, and a clear written answer helps the reviewer reach a decision.
Purpose of payment versus source of funds: two different questions
The two terms appear together in requests, but they ask about different things, and a good answer addresses both.
| Question | What the bank wants to know | Typical evidence |
|---|---|---|
| Purpose of payment | Why this money is being paid to you | Contract, invoice, proof of delivery |
| Source of funds | Where the payer's money comes from, and that it is the payer's own | Payer's company details, the account it paid from, the commercial relationship |
For a company paid by its clients, the purpose is usually straightforward: the client is paying for services or goods under a contract. The source of funds question is about the payer. The bank wants to see that the money comes from the client's business and not from an unrelated third party, which is why a payment sent from someone other than the invoiced company attracts attention.
The document pack, item by item
The exact request varies by bank and by payment, but the same documents often cover them.
| Document | What it shows |
|---|---|
| Signed contract or order form | The commercial relationship, the parties and what was agreed |
| Invoice for this payment | What the payment is for and that the amount matches |
| Proof of delivery | Reports, deliverables, usage logs, shipping documents or acceptance emails for the period |
| Payer company details | Registered name, country, registration number and website of the payer |
| Payment confirmation | The payer's transfer confirmation, if the bank asks for it |
| Short explanation | A few sentences on the relationship and on any detail that looks unusual |
The short explanation is often the most useful item. A reviewer who reads "Monthly retainer for digital marketing services under the agreement of 3 March, invoice 2026-041, period September" understands the payment before opening the attachments.
What makes an invoice easy to accept
An invoice is the document reviewers rely on most, and small defects in it cause most follow-up questions. A reviewer typically checks that:
- the seller is your registered company, spelled exactly as on the account, and the beneficiary details match the account that received the funds;
- the buyer is the same company that sent the payment;
- the description names the service or goods and the period, rather than a generic word such as "services";
- the amount and currency match the payment, or the difference is explained;
- the invoice number appears in the payment reference;
- the invoice refers to the contract it is issued under.
If a client pays several invoices in one transfer, list them in the explanation with their amounts. If a client pays through a group company, say so and attach whatever shows the link between the two.
Deadlines: what happens if you do not answer in time
A review request usually comes with a deadline set by the bank that raised it. The length varies between banks and depends on who asked: the beneficiary's own bank or a correspondent on the route. While the review is open, the funds are typically held and cannot be used.
If the request is not answered, or the answer does not satisfy the reviewer, the bank may return the funds to the sender, usually less any charges taken on the way. The payer then has to send the payment again, and the invoice stays open in the meantime. An incomplete answer often starts a second round of questions, so it is worth sending the full pack the first time.
Building the pack once, instead of every time
Most companies meet the same request several times a year, often for the same clients. A little preparation turns each one into a short task.
- Keep one folder per client with the signed contract, the client's company details and a two-sentence description of the relationship.
- File each invoice and its proof of delivery in that folder when the invoice is issued, not when a question arrives.
- Ask new clients to pay from an account in the name of the invoiced company and to quote the invoice number.
- Tell your provider in advance about a large or unusual incoming payment, with the documents attached.
At ArtPay, each client has a named manager. Agencies and SaaS companies with clients abroad will find the wider set-up, including invoices and account details, in receiving international client payments.
Where this differs from the documents for opening an account
This pack is about one payment on an account that is already working. The documents for opening a business account are different: they describe the company itself, through the business review known as KYB and the identity checks on its people known as KYC. Those are covered in opening a business account: what the review looks at.
At ArtPay the business review usually takes about 3 days once the documents are complete, and the transparent fixed fee for each route is confirmed in a written quote before activation.
Who this is for, and who it is not for
This guide is for registered companies that receive international payments from business clients in USD or EUR, especially digital agencies, SaaS and IT service companies. ArtPay provides a multi-currency business account in USD and EUR for these companies, with corporate cards for eligible businesses and payments to contractors abroad from the same account. If that describes your business, see business accounts for agencies and SaaS.
Questions
Why is the bank asking about a payment from a client we have invoiced before?
Reviews are triggered by the payment, not only by the client. A larger amount than usual, a different sending account or country, a payer name that differs from the invoice or a check by a correspondent bank on the route can each lead to a question. Answering with the contract, the invoice and proof of delivery gives the reviewer what is usually needed.
Can funds be returned to the sender if we do not provide the documents?
Yes. If a review request is not answered by the deadline the bank sets, or the answer is not sufficient, the bank may return the funds to the sender, usually less any charges on the route. The payer then has to send the payment again.
What happens during an account review?
ArtPay reviews each business before onboarding, and accounts and transactions may be reviewed afterwards under applicable policies. A business review normally covers company registration documents, the legal form and address, the ownership structure, and identification of directors and beneficial owners. Each client has a named manager who explains the next steps where permitted.
What documents does ArtPay ask for before opening an account?
Usually the company's registration documents, proof of its legal address, a description of the ownership structure, and identification of directors and beneficial owners. The exact list depends on the company and its payment routes; your named manager sends it before the business review (KYB) starts.
Who can open an account with ArtPay, and who is turned down?
Registered companies from supported countries. Eligibility is reviewed for each business, and the review looks at ownership, the nature of the money flow and the source of funds. ArtPay does not onboard individuals without a registered company, activities prohibited under its Terms, or merchants that need card acquiring on their website.
How long does the business review (KYB) take at ArtPay?
Usually about 3 days once the documents are complete. Your named manager tells you which documents are needed, and the fixed fee for your routes is confirmed in a written quote before the account is activated.
This guide is general information, not legal, tax or financial advice. Payment rules and timings vary by bank and country; confirm the details for your route with your provider.