Consumer Charge

You can issue lines of credit to US Person Account Holders using Consumer Credit Card Products. Highnote offers a charge card solution as one of the available Consumer Credit Card Product offerings. The Consumer Charge Card Product doesn't charge interest and requires Account Holders to pay their statement balance in full by each billing cycle's due date.

For Credit Card Products not supported by an Account Holder's secured deposit, you must provide adequate capital based on your customers' extended lines of credit, either from yourself or through a debt facility. Contact support@highnote.com to understand funding requirements and arrange your Consumer Charge Card Product setup.

There are two methods for creating a Consumer Charge Card Product:

• Using the Highnote Dashboard
• Using the Highnote GraphQL API

If you are using the Highnote API, use the following mutation in your Test Environment to create a Credit Card Product. For input variables, ensure you pass CONSUMER_CREDIT as the vertical:

Once you create your CONSUMER_CREDIT Card Product, you must add the CHARGE Credit feature. This feature enables pay-in-full terms on issued Financial Accounts' billing statements.

Use the following mutation to enable the feature:

You can access credit-related settings and features for your Card Product by using the GetCardProductWithCreditConfigs query. In the Live Environment, you can adjust the number of days delinquent based on your Card Product's requirements. These requirements are configured when setting up your Card Product with the Highnote team.

In the Test Environment, by default, Consumer Charge Card Products are automatically assigned the delinquency settings outlined in the following table:

Use the following query to view credit product settings:

In the Test Environment, you can simulate depositing funds into your Product Funding Account for Consumer Charge Products. Subsequently, these deposited funds will be utilized to authorize purchases on your Financial Accounts' credit limits. Simulating deposits doesn't require connecting an external bank account. To initiate the deposit, you must first find your Product Funding Account ID.

Use the following query to lookup your Product Funding Account ID:

With your Product Funding Account ID, you can carry out a simulated WIRE deposit. After simulating a WIRE deposit and issuing a Financial Account to the Account Holder, you can establish a credit limit using the Product Funding Account as collateral.

You can use the following SimulateDeposit mutation to fund your Product Funding Account. Note the following about using the memo input variable field in the Test and Live Environments:

• In the Test Environment, the memo field serves to exhibit what would usually appear on a given transfer.
• In the Live Environment, you cannot edit memo field due to specific guidelines on how WIRE and ACH transfers are presented to an Account Holder.

When you create an Account Holder, there are creditRiskAttribute fields that you might consider providing as inputs to a credit application. Your credit policy will dictate the collection of data required to issue a line of credit, which may be greater in scope than Total Annual Income and Current Debt Obligations.

Prior to issuing a line of credit, you should collect totalAnnualIncome and currentDebtObligations from your applicants. This information can be supplied during Account Holder creation and collected within the Card Product's application. Alternatively, you can update the Account Holder with the necessary details after submitting the application.

Use the following mutation to create an Account Holder:

Before opening an application, you can enable collaborative application decisioning on your card product. Collaborative application decisioning empowers you or your underwriter to provide a recommended APPROVED or DENIED application decision based on your credit policy. Highnote will execute regulatory checks against the application, such as KYC, KYB, and OFAC, and will utilize your recommended decision to determine a final application decision.

Enabling collaborative application underwriting can be easily done through your card product's settings on the Highnote dashboard, or you can enable the feature via the API using the following mutation:

After enabling collaborative application decisioning, you can create an application that will trigger an application decision request. Afterward, you can respond to the application decision request with an approved or denied decision.

For more details on receiving the underwriting notification event and delivering your decision, refer to the Collaborative Application Decisioning guide. Additionally, you can reference the Application Manual Reviews guide for more information on collecting documents for identity verification.

With an APPROVED application, you can create a Financial Account by providing the applicationID.

Use the following mutation to issue a Financial Account:

You can set or change a Financial Account’s credit limit by providing the financialAccountID and the limit you want to assign to the Financial Account. It's essential to ensure that your Product Funding Account holds funds equal to or exceeding any credit limits you extend to your Financial Accounts.

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

Once you have created a Financial Account with a credit limit, you can issue a Payment Card. By default, a Payment Card is a Virtual Card. After you issue a virtual card, you can Create a Physical Card Order if needed.

Use the following mutation to issue a Payment Card:

For Card Products requiring regular Account Holder payments, both automatic recurring and one-time payments can be used.

To schedule repayments, an Account Holder needs to connect a verified, external bank account. Highnote offers secure options through Plaid and Finicity for Account Holders to validate and link their external accounts.

Once linked, Account Holders can easily transfer funds via ACH between their Highnote Financial Account and their external bank account. Before creating a payment schedule, learn how to test connecting an external account via Plaid or Finicity from the Connect External Accounts guide.

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

See Scheduled Repayments for more information on payment schedules, viewing scheduled payments, and canceling payment schedules.

Use the following mutation to create a recurring payment schedule:

Highnote supplies essential data for generating a billing statement for a Financial Account. You can use this data to fill in your billing statement template and provide it to your customers.

Billing statement data originates from Financial Accounts and becomes available at the close of a billing cycle. Billing period end dates for Credit Card products may vary across Financial Accounts on your product. Typically, statement data is available within 48 hours after the billing period ends.

To generate a Financial Account's latestClosedStatement, you can query the most recent billing statement data for a Financial Account. Billing statements include only posted transactions and their corresponding balances for the relevant billing period. For transactions within the Financial Account's current billing period and the upcoming due date, see the currentOpenStatement.

When a balance is due on the Financial Account, the currentAmountDue gets updated based on credits (e.g., payments, refunds) to the Financial Account between the billing period end date and the due date. To retrieve the current amount due in line with your Card Product, reference the ConsumerChargeCardFinancialAccountStatementSnapshot. This balance can be presented to your customers outside of the statement itself, informing them of the remaining amount due since their last statement generation.

In the Test Environment, you can end a Financial Account’s billing period early to simulate a billing statement without waiting for the billing period to end.

The new period must be at least 60 seconds in the future. If the periodBoundary is not supplied, the statement’s endPeriod will automatically be set to 60 seconds in the future.

For more information on generating or searching for billing statements, see Billing Statements.

The 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 understand delinquency information and notification events.

You can utilize the Delinquency Simulator in the Highnote Dashboard or reference the Simulate Delinquency guide for more information on using the Highnote API.

If your simulation results in a delinquent Financial Account, you can simulate a repayment. See Scheduled Repayments for more information.

• Create Authorization Controls to manage the way your cards can be used.
• Setup Notifications to automate your integration.