Creating a Loan From Transactions

This guide explains how to use the Create Loan From Transactions endpoint to create a loan for the sum total of the settled transactions selected by a customer’s debit or credit account.
Related documentation:

• About Buy Now, Pay Later: Post-Purchase — Explanation of post-purchase BNPL with use cases for debit and credit transactions
• Buy Now, Pay Later: Post-Purchase Workflows – How this endpoint powers the post-purchase BNPL

Determine settlement keys

A settlement key identifies the transactions that your customer selected to move to a loan/plan. You can pass up to five settlement keys per loan/plan.

The settlement key consists of the settlement ID and the association for the transaction. Use the Posted Transactions RDF to identify the SETTLE DTL ID field (identifier for the transaction in the settlement table) for the settle_id and NETWORK CODE fields for the card network.

The 3 letter abbreviations for the networks we support are:

• VISA = "VIS"
• MASTERCARD = "MAS"
• MAESTRO = "DEB"
• STAR = "STA"
• DISCOVER = "DIS"
• ALLPOINT = "ALL"
• PULSE = "PLS"

The settlementKeys parameters pattern is "<settle_id>". For example, pass "8770266:MAS,8770268:MAS" to move two settled transactions from the Mastercard network to a loan.

Determine funds disbursement

It is up to you when and where Galileo disburses funds for the loan/plan. You have the option to disburse funds to a Galileo DDA or external account.

To disburse funds to a Galileo DDA when the loan is created, call the Create Loan From Transactions endpoint with these specific parameters:

If you choose disbursementDestinationType as EXTERNAL, you are responsible for fund disbursement. Do not pass disbursementDestinationPrn when disbursementDestinationType: EXTERNAL. If you attempt to pass disbursementDestinationPrn, Galileo returns status code: 1219-15.

Adjust the customer's account balance

Use the Create Adjustment endpoint to increase the balance of the customer’s Galileo account with each installment repayment at a later point in time. You can use this endpoint to either credit or debit the account. For details, see Creating an Adjustment.

Alternatively, you can call a third-party API to disburse funds to a non-Galileo account.

Events API

The Transaction Events Webhook sends events that are specific to loans:

• loan_creation_event— A loan has been successfully created for a customer
• loan_creation_failure_event — An incoming loan creation request has failed
• loan_payoff_event — An incoming payment request made by a customer results in the payoff of the loan.

No event webhook messages are sent when a customer makes a repayment on their loan/plan.