How money moves
Bag App by BagWire never takes custody of member funds. A licensed payment partner holds and moves the money; Bag App keeps the ledger, the identity checks and the member experience. Here is the full path of a dollar.
Member bank account
| standard ACH deposit
v
Processor -> Licensed payment partner
|
v
Pooled custodial account at partner bank
(all member balances live here)
|
+---------------+----------------+
| |
Ledger entry: sender Ledger entry: recipient
| internal transfer ^
+--------------------------------+
|
| instant debit-card cash out
v
Member's verified debit card
Bag App holds: the ledger, identity records, fee logic.
Partner holds: the money, the licence, the settlement rails.1. Member funds their bag
Money leaves the member's connected bank account by standard ACH.
Held by: the licensed payment processor and its partner bank.
Standard bank ACH deposits usually take 1–3 business days.
2. Funds settle to the partner account
The licensed payment partner receives and settles the funds.
Held by: the partner bank, in a pooled custodial account — never in a Bag App account.
Settlement follows the partner's standard schedule.
3. Balance is credited in the ledger
Bag App records the member's balance as a ledger entry against the pooled account.
Held by: the partner bank. Bag App only keeps the record of who owns what.
Immediate once the partner confirms settlement.
4. Member sends money
A transfer moves the ledger balance from sender to recipient. Sending is free — the recipient receives the full amount sent.
Held by: the partner bank. No money leaves the pooled account.
Instant inside Bag App.
5. Member withdraws
The payment partner sends the payout to the member's verified debit card.
Held by: the partner until the card network posts the payout.
Instant to the member's verified debit card.
Clear authorization
Before a transfer is approved, the sender confirms who they are paying and sees the amount leaving their balance and the full amount the recipient receives. Sending is free; Bag App LLC and its banking partners charge their fee only when money is cashed out to a debit card, and that exact dollar fee is shown before the cash out is authorized.