Funds in flight
Funds in flight means money a payment company has sent but that has not yet settled or been credited at the destination. It is no longer available at the source and not yet usable at the receiving end.
How it works
Every transfer passes through stages: debit at the source, transit through rails or correspondents, and credit at the destination. Between the first and last stage, the money is in flight. The US model money transmission law captures a related idea. It treats money received but not yet received by the payee as an outstanding obligation.
Funds in flight affect both liquidity and reporting. A top-up wired to a payout partner has left your account but cannot yet fund payouts. Intermex notes liquidity risk when funding from agents lags the moment beneficiaries are paid. Treasury needs to see in-flight amounts by corridor and expected arrival time.
A common error is counting in-flight top-ups as available balance. Another is losing track of returned or rejected transfers. Aged in-flight items deserve investigation, since they may signal a failed payment or a missing credit.
Example
Illustrative example: At 16:00 a firm has $900,000 in flight: a $600,000 top-up to its Mexico partner and $300,000 of payouts awaiting credit. The top-up lands at 18:00. In-flight balance falls to $300,000, and the partner's usable balance rises by $600,000.
Frequently asked questions
Are funds in flight still our liability?
Generally yes, until the recipient is paid or the money is refunded. The CSBS model law treats money not yet received by the payee as an outstanding obligation. Your license or safeguarding rules set the exact point.
How should funds in flight appear in a cash position?
Show them as a separate line, not as available cash. Tag each item with its corridor, rail and expected arrival time. Move it to available only when the destination confirms the credit.
Related terms
Sources
- CSBS Money Transmission Modernization Act (model law text) · Conference of State Bank Supervisors (hosted by NMLS)
- International Money Express, Inc. Form 10-K for fiscal year 2024 · U.S. Securities and Exchange Commission (EDGAR)
- What is cash float? · Modern Treasury
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.