Consumer Credit

Consumer credit card products support revolving lines of credit, which require account holders to make minimum payments by their billing cycle due date. Additionally, you can assess interest charges on revolving balances.

Highnote supports the following consumer credit card products:

This guide provides an overview of creating and setting up an unsecured consumer credit card product using the Highnote API in the test environment. In the live environment, the Highnote team will assist with creating your card product.

Note: To enable secure deposits or use the credit processing-only model, contact support@highnote.com

Use the following mutation to create an unsecured credit card product in the test environment. To create a consumer credit card product, use CONSUMER_CREDIT as the vertical input variable:

After creating a CONSUMER_CREDIT card product, use the following mutation to add the REVOLVING feature. This feature enables minimum payment terms and revolving balance capabilities for financial accounts:

In the test environment, credit and charge card products are automatically assigned credit features and settings. These features and settings are similar to a live program's credit policies, which are configured by the Highnote team during program setup.

The following table outlines the default features and settings for consumer credit card products in the test environment:

Use the following query to view credit features for your credit card product in the test environment:

Unsecured credit card products use a product funding account to issue lines of credit. The product funding account is where you deposit the capital that you or your debt facility provide to back lines of credit.

In the test environment, you can simulate depositing funds into your product funding account. Simulating deposits doesn't require connecting a verified external bank account.

Funding your product funding account requires the following steps:

1. Retrieve the product funding account ID.
2. Initiate a wire transfer to the product funding account.

Use the following query to find your product funding account ID:

Using the following mutation, simulate a wire transfer in the test environment using the product funding account ID as the toFinancialAccountId input variable:

Credit plans allows you to meet unique needs of your account holders by providing flexible and configurable terms on credit card products. Credit plans define the following:

• Interest rate
• Interest rate type
• Interest accrual method
• Pricing and policy terms for specific balance types

You can create credit plans in the test environment to test your card product. For more information on creating credit plans, see Create Credit Plans. The Highnote team will create credit plans for your card product in the live environment.

Note: Your credit policy will dictate what data will be required to issue a line of credit in the live environment. Some credit policies require more data than the totalAnnualIncome and currentDebtObligations.

Before issuing a line of credit, you should collect totalAnnualIncome and currentDebtObligations from your applicants. These fields are inputs for the personCreditRiskAttributes object.

There are two recommended methods for collecting this information:

• Collect from the account holder when they are completing their application.
• Update the account holder with the necessary details after they've submitted their application.

Use the following mutation to create an account holder for a consumer credit card product. Provide personCreditRiskAttributes as necessary:

Application approval for credit card products in the live environment uses one of the following workflows:

• Highnote runs your credit policy for you and approves or denies applications based on your credit policy.
• You participate in collaborative application decisioning to provide a recommended approval or denied application response.

By default, in the test environment, you can simulate credit application decisions with various values. These simulation values are used when onboarding an account holder. Use this default setting if Highnote will be executing your credit policy on your behalf. For more information, see the Simulate Underwriting Decision guide.

Alternatively, you or your underwriter can use collaborative application decisioning. This feature allows you to recommend an approval or denial based on your credit policy. For more information, see Collaborative Application Decisioning.

Enable collaborative application decisioning in the Highnote dashboard, or using the API with the following mutation:

When an account holder application is submitted, it triggers an application decision request. If you use collaborative application decisioning, you can respond with a recommended APPROVED or DENIED decision.

In some cases, additional documents may be required to approve an application. For more information on collecting additional documents, see Request Documents for Application Review.

Use the following mutation to open an application for an account holder:

If Highnote runs your credit policy for you, use the following input variables when creating applications:

• totalAnnualIncome
• accountHolderCreditReportPullConsent

For more information on credit application simulations, see Simulate Underwriting Decision.

With an APPROVED application, you can create a financial account using the following mutation:

Note: Setting or updating a credit limit is an asynchronous process to ensure your ledger balances and validations are in check.

You can set or update a financial account’s credit limit by providing the financialAccountID and the credit limit you want to assign to the financial account. Your product funding financial account must have funds equal to or exceeding any credit limit you extend to your account holders.

Use the following mutation to set or update a credit limit:

Once you have created a financial account with a credit limit, you can issue a payment card. By default, all payment cards start as virtual cards. Highnote supports the following types of payment cards:

• Virtual cards
• Physical cards
• Digital wallets

Use the following mutation to issue a virtual card:

By default, all payment cards start as virtual cards. Highnote also supports issuing personalized payment cards to account holders. For more information on issuing physical cards, see Print Physical Cards.

Highnote supports issuing tokenized cards. Account holders can add tokenized cards to digital wallets like Apple and Google Pay. For more information, see Add Cards to Digital Wallets.

Warning: Highnote recommends using the Card Viewer SDK to securely display payment card data and and reduce PCI non-compliance.

There are two methods for displaying payment card data on your website or application:

• Fetching the data from the Highnote API
• Use the Card Viewer SDK to ensure PCI compliance

To fetch payment card data from the API, use the following query:

Consumer credit card products require regular repayments. An account holder needs to connect a verified external bank account to Highnote to schedule a repayment. Once a verified account is linked, the account holder can use ACH transfers to schedule payments.

Highnote supports the following types of payment schedules:

• Recurring payments
• One-time payments

Account holders must have a verified external bank account connected to Highnote to schedule repayments. For more information on connecting external accounts, see Connect External Accounts.

You can establish one-time or recurring payment schedules, enabling your customers to schedule payments on their monthly due date or a customized calendar day. Recurring payment schedules are based on a point-in-time balance, such as an outstanding balance, and the ACH transfer amount will be calculated on the scheduled date.

See the scheduled repayments guide for more information on managing, viewing, and canceling payment schedules.

Highnote provides essential data for generating billing statements for financial accounts. To create a billing statement, we recommend creating a template and using the data Highnote provides to fill in the template. For more information on billing statements, see Deliver Statements.

Refer to the following guidelines for creating a billing statement:

• Billing statement data is available at the close of a billing cycle. Credit card product billing period end dates may vary across financial accounts. Typically, statement data is available within 48 hours after the billing period ends.
• To retrieve the current amount due for your card product, reference the ConsumerRevolvingCardFinancialAccountStatementSnapshot. This balance can be presented to your customers outside the billing statement, for example, on your website or application's "account page".

Use the following query to fetch billing statement data:

After configuring your card product, we recommend simulating transactions. Simulating transactions is useful for testing your card program's configuration and settings.

For more information on simulating transactions, see Simulate Transactions.

Highnote's delinquency simulator lets you view a financial account's current delinquency status and receivables by simulating past purchase and payment scenarios. In the test environment, this helps with understanding delinquency scenarios and testing notification events.

Use the Simulate Delinquency guide for more information on using the Highnote API to simulate delinquency in the test environment.

After configuring your card product and simulating transactions, you can use the following features to further expand your integration:

• Create authorization controls to manage spending.
• Create a rewards program for your card product.
• Setup notifications to automate your integration.