Creating an Overdraft Account

This guide describes how to create and manage overdraft accounts using the Set Account Feature and Add Account endpoints. Prior to creating the overdraft account, you arrange the details of the overdraft account with your bank, and then you communicate the details to your Galileo representative, who incorporates those details in the setup for the overdraft product.

Follow this procedure to:

  • Make a primary account eligible to use overdraft
  • Create an overdraft account
  • Disable or enable overdraft

Do not follow this procedure to:

Result of following this procedure

When this procedure is successfully completed, the following are true:

  • The primary account is eligible to use overdraft.
  • The overdraft account exists and is ready for use.
  • Overdraft can be disabled or re-enabled.

Creating an overdraft account

This guide assumes that the primary account holder has opted-in to using overdraft by whichever means your bank requires, such as agreeing to a disclosure document.

1. Create the primary account

When you set up the primary account product that will be using overdraft (usually a DDADDA - Demand deposit account. The banking-industry term for an account from which funds can be withdrawn at any time, such as a checking account.), you can ask Galileo to set the ODELG parameter to Y, which automatically makes the primary account eligible for an overdraft account when it is created. Then, use the Create Account endpoint to create the primary account. (Consult the Creating an Account guide for instructions.)

If the primary account already exists, and you want to add overdraft as a new feature, continue to the next step.

2. Make the primary account eligible

Before you can add the overdraft account, the primary account must be eligible for an overdraft account. The Galileo system requires that the primary account be active and that the balance be 0.00 or higher.

When the primary account meets the system requirements, the primary account must be made eligible at a technical level. Account feature 17 controls whether a primary account is eligible for an overdraft account and whether the overdraft account has been opted-in or opted-out. Before a primary account can have an overdraft account attached to it, account feature 17 must be set to E (eligible). You have two options:

  • If ODELG is set to Y for the primary account product, it automatically sets account feature 17 to E when the primary account is created.
  • You call the Set Account Feature endpoint on an existing primary account with these values:
    • accountNo: <primary account>
    • featuretype: 17
    • featureValue: E

When you create a primary account with ODELG set to Y, you receive the ODIN: overdraft_opt_in message, according to your arrangements with Galileo. (This message is also sent when an account is opted-in to overdraft using the CSTCST - Customer Service Tool. Software that the Galileo customer service team uses, which is also available to providers, to view customers and their accounts..) The message contains the PRNPRN - Payment reference number (pmt_ref_no). The 12-digit Galileo-generated account identifier, which exists independently of the PAN or other identifiers. for the DDA. This message does not indicate that the overdraft account has been created—only that the DDA is eligible to use overdraft. This message also does not indicate that the overdraft account can be used.

3. Create the overdraft account

To create the overdraft account, call the Add Account endpoint to add the overdraft as a secondary account to the primary account. Consult the Adding an Account guide for instructions. Use these parameters:

  • accountNo: <primary account>
  • prodId: <overdraft product ID>
  • sharedBalance: 0

When the overdraft account has been created, you receive another ODIN: overdraft_opt_in message, according to your arrangements with Galileo. This message contains the PRN of the overdraft account.

To make the overdraft account active and ready for use, call Set Account Feature with these parameters:

  • accountNo: <primary account>
  • featureType: 17
  • featureValue: P

Viewing the overdraft account

Call the Get Overdraft Balance endpoint to return information such as:

  • Available overdraft limit
  • Payback amount
  • OTBOTB - Open to buy. The funds in a bank account that are available to spend, meaning that they are not on hold. of the overdraft and primary account, with and without pending fees
  • Freeze status

For the accountNo parameter you can use any of these values:

  • Overdraft PRN
  • Primary account PRN
  • Primary account PAN

You cannot call the Get Account Overview endpoint for an overdraft account.

To see the primary account's overdraft status, call the Get Account Features endpoint with accountNo: <primary account> and check the value for account feature 17. Possible values are:

  • I — Ineligible. Account cannot have an overdraft account
  • E — Eligible. Account can have an overdraft account
  • P — Participating (opted in)

Disabling the overdraft account

To prevent a primary account from drawing funds from the overdraft account, you have these options:

  • Freeze the overdraft account
  • Opt out of the overdraft account

Freezing the overdraft account

An overdraft account will be frozen by Galileo processes when an overdraft account exceeds the fee cap limit for the month. You can also freeze an overdraft account using the Program API by following the instructions below.

When the overdraft account is frozen, the primary account cannot draw funds from it, but the account holder can still deposit funds into the primary account, which go toward paying the overdraft balance. Be advised that on the first day of the month, Galileo processes will automatically unfreeze a frozen overdraft account if the primary account meets system eligibility requirements, even if you freeze the account manually.

To freeze the overdraft account manually, call the Modify Account or Card Status endpoint with these values:

  • accountNo: <overdraft PRN>
  • type: 14

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Note

Freezing an overdraft account does not change its status, nor does it change account feature 17 for the primary account. You can see the freeze status for the overdraft account by calling Get Overdraft Balance.

To unfreeze an overdraft account, call the Modify Account or Card Status endpoint with these values:

  • accountNo: <overdraft PRN>
  • type: 15

Opting out of the overdraft account

Call the Set Account Feature endpoint with these parameters:

  • accountNo: <primary account>
  • featureType: 17
  • featureValue: E

This setting prevents the primary account from drawing on the overdraft account as well as prevents the internal Galileo processes from activating the account. Galileo processes will not change account feature 17 to P after you have set it to E in this manner.


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