How to Create an Approval Flow

What is an Approval Flow?

An approval flow in a payment system is a structured process that controls how financial transactions are reviewed and authorized before being completed. This ensures that payments are properly vetted and approved by designated individuals within an organization.

Key Components of an Approval Flow

Payment request initiation: Where a user submits a payment for processing
Approval levels: Different tiers of authorization based on payment amount or type
Designated approvers: Specific individuals with authority to review and approve payments
Verification steps: Checks and balances to ensure payment accuracy and legitimacy

Approval flows help organizations maintain control over their payment processes, prevent unauthorized transactions, and ensure compliance with internal policies and regulatory requirements.

Creating an Approval Flow in LiquidTrust

Setting up an approval flow in LiquidTrust is straightforward and can be customized to match your organization's needs.

Important Info

Currently, the approval flow is valid only for Direct Payments.

Step-by-Step Guide

Access the Approval Settings: Navigate to your organization's settings and locate the "Policies" section.
Create a new Policy: Create a new policy to start defining your approval flow steps.
Define Approval Thresholds: If needed, set the payment amount thresholds that will trigger different approval levels.
Assign Approvers: Designate team members who will have approval authority at each level.
1. Specifying more than one individual in a single policy means that any one of them can approve.
2. To create a flow where multiple approvers are required, create a new policy per each approval step. They will be executed in sequence.
3. Only the individuals listed in an approval policy will receive notifications and will have the authority to approve, no matter the role.
4. The final approver will have the ability to both Approve and Pay simultaneously. If there is a single approver, they will have the ability to both Approve and Pay simultaneously. If you would like one person to approve and another to release payment, you should create two approval policies, so that the final approver will be performing the Approve and Pay step.

Example

I want to create an approval flow for payouts with these conditions:

any payment must be approved by Member A -OR- Member B
AND a second and final approval for any payments is required from Member C
AND additional conditional approval for payments over 10,000 USD from Member D

To achieve this I will create in sequence:

1 policy for "Any Amount" associated with Member A and Member B
1 policy for "Any Amount" associated with Member C
1 policy for "Amount Greater Than" associated with Member D

These policies will be executed in sequence (top-down).

Best Practices to Set Up Secure Approval Policies

Always have at least two approvers for high-value transactions.
Document your approval policy and share it with team members.
Regularly review and update approval thresholds as your business grows.

Remember that approval flows can be modified at any time to accommodate changes in your organization's structure or requirements.