> ## Documentation Index
> Fetch the complete documentation index at: https://developer.tazapay.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Collections on behalf of

Tazapay's **Collections on Behalf Of (COBO)** capability allows platforms / fintechs to receive funds on behalf of their customers which can be individual or business. Tazapay can configure **virtual accounts** or **stablecoin wallets** for your customers to receive payments.

This ensures compliance, traceability, and correct attribution of incoming funds.

***

## High-level Flow

<img src="https://mintcdn.com/tazapay-58ae360f/SWJmhDU02-pAjete/images/diagrams/cobo.png?fit=max&auto=format&n=SWJmhDU02-pAjete&q=85&s=8339391c19f86e83ad444a69c2d1e3f2" alt="COBO flow" width="1997" height="593" data-path="images/diagrams/cobo.png" />

1. Create an **Entity** (Individual or Business)
2. Create a **Virtual Account** or **Stablecoin Wallet**
3. Share account details with the **Payer**
4. Receive and attribute **Incoming Funds**
5. Handle **Collection Events / Webhooks**

***

## Step 1: Create an Entity (Individual or Business)

An Entity represents a platform's or fintech's customer — the party on whose behalf the collection is being made. Every virtual account or wallet must be associated with an entity.

Tazapay supports two entity types:

* **Business Entity** – for registered companies
* **Individual Entity** – for individual customers (e.g., freelancers, creators, sole proprietors)

<Warning>
  Only entities with status **submitted** can be used to create virtual accounts or wallets.
</Warning>

### Relevant Links

1. [Business Entity Requirements -  Full Onboarding](/getting-started/overview/onboarding-requirements)
2. [Individual Entity Requirements - Full Onboarding](/getting-started/overview/onboarding-requirements)
3. [Entity Requirements - Simplified Onboarding](/Global-Money-Movement/connected-accounts/simplified-entity-creation)
4. [Create Entity API](/api-reference/tazapay-api/create-entity)
5. [Submit Entity API](/api-reference/tazapay-api/submit-entity-business)

***

## Step 2: Create a Virtual Account or Stablecoin Wallet

Once you have a submitted entity, you can create a collection destination for them.

Tazapay supports two collection destination types:

<CardGroup cols={2}>
  <Card title="Virtual Accounts" icon="building-columns">
    Bank account numbers that can receive local or international transfers. Funds are automatically attributed to the associated entity.
  </Card>

  <Card title="Stablecoin Wallets" icon="wallet">
    Blockchain wallet addresses for receiving stablecoin payments (e.g., USDC, USDT). Ideal for crypto-native businesses.
  </Card>
</CardGroup>

### Virtual Account Features

| Feature             | Description                                           |
| ------------------- | ----------------------------------------------------- |
| Multi-currency      | Support for multiple currencies per entity            |
| Local rails         | Receive domestic transfers with local account numbers |
| International       | Receive SWIFT/wire transfers                          |
| Auto-reconciliation | Incoming funds automatically matched to entity        |

### Stablecoin Wallet Features

| Feature          | Description                              |
| ---------------- | ---------------------------------------- |
| Supported tokens | USDC, USDT (network availability varies) |
| Networks         | Multiple blockchain networks supported   |
| Auto-conversion  | Optional conversion to fiat on receipt   |
| Real-time        | Near-instant settlement                  |

### Relevant Links

* [Request Collection Accounts via Support Team](/collection-accounts/requesting-for-vas/support-team)
* [Collection Account Webhooks](/api-reference/tazapay-api/collection-account-webhooks)

***

## Step 3: Share Account Details with Payer

Once the virtual account or wallet is created, share the account details with the payer (your customer's customer or counterparty).

<Tip>
  You can retrieve the account details programmatically via API and display them in your platform's UI, or send them directly to the payer via email or invoice.
</Tip>

### Virtual Account Details Include

* Account number / IBAN
* Bank name and address
* SWIFT/BIC code (for international transfers)
* Routing number (for local transfers)
* Reference code (for attribution)

### Stablecoin Wallet Details Include

* Wallet address
* Supported networks
* Supported tokens

### Relevant Links

1. [Viewing Virtual Accounts and Stablecoin Wallets](/collection-accounts/viewing-va/dashboard)

***

## Step 4: Receive and Attribute Incoming Funds

When a payer sends funds to the virtual account or wallet:

1. Tazapay receives the incoming transfer
2. Funds are automatically attributed to the associated entity
3. A webhook notification is sent to your platform

***

## Step 5: Handle Collection Events & Webhooks

Tazapay sends **webhooks** to notify you of collection events. You should always rely on webhooks (not polling) for real-time fund attribution.

### Relevant Links

1. [Collect Webhook Events](/api-reference/tazapay-api/collect-webhook)
2. [Collect State Machine](/collection-accounts/incoming-payments/state-machine)
3. [Get Collect API](/api-reference/tazapay-api/fetch-collect)

### Best Practices

<Steps>
  <Step title="Verify Webhook Signatures">
    Always validate webhook signatures to ensure authenticity and prevent spoofing.
  </Step>

  <Step title="Implement Idempotency">
    Handle duplicate webhook deliveries gracefully by tracking processed event IDs.
  </Step>

  <Step title="Store Event History">
    Maintain a log of all collection events for reconciliation and audit purposes.
  </Step>

  <Step title="Monitor for Anomalies">
    Set up alerts for unexpected collection patterns or failed attributions.
  </Step>
</Steps>