Secured Credit Workflows

This section contains workflows that illustrate the processes for creating and managing secured credit products.

Secured credit account structure

This flowchart is an example of how you might structure a product with a secured credit account. Your Galileo representative can help you build a process that works in your own system. Steps are described below.

  1. A new customer requests a secured credit account.
  2. You send the Create Account endpoint to create the primary account.
  3. You send the Add Account endpoint to create the credit account and link it to the primary account.
  4. You send the Add Account endpoint a second time to create the secured credit account and link it to the primary account.
  5. Galileo sends you the CAPP: app_completed event for the primary account.
  6. The account holder deposits funds into the secured credit account.
  7. You send the Set Credit Limit endpoint. This establishes the account credit line.
  8. Galileo sends the charge card to be embossed.
  9. The customer receives the charge card and requests to activate it.
  10. You send the Activate Card endpoint to activate the charge card.

Secured credit authorization and settlement

With a secured credit product, a card transaction is settled against the secured credit account, as shown in this flowchart. Steps are described below.

  1. An account holder makes a purchase over card network rails and the card network sends an authorization request.
  2. You or Galileo approve the authorization request based on the available balance in the account holder's secured account, which matches the credit line.
  3. If the authorization request is approved, Galileo places a hold for the authorized amount, which reduces the account holder’s available balance on the secured account. Galileo sends the BAUT: auth event with the available balance in the open_to_buy field.
  4. The card network sends the settlement batch file.
  5. Galileo directs the issuing bank to pay the card network.
  6. Galileo backs out the authorization hold and sends you the SETL: setl event.
  7. The monthly invoice is sent to the account holder and the issuing bank receives repayment.
  8. If the account holder cannot pay down the credit line from the primary account, funds may be recovered from the secured credit account.

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Note

See About Card Transactions for more information on authorization and settlement over card network rails.

Secured credit account funds flow

These flowcharts illustrate the movement of funds into and out of the secured credit account, and the resulting credit limit adjustment. Steps are described below.

Move funds into the secured credit account

  1. The account holder requests to move funds from one account into the secured credit account.
  2. You send the Create Account Transfer request.
  3. Funds are transferred and the secured account balance increases.
  4. You send Set Credit Limit to update the credit line based on the funds in the secured account.

Move funds out of the secured credit account

  1. The account holder requests to move funds out of the secured credit account and into another account.
  2. You send a Create Adjustment or Create Payment request.
  3. Funds are adjusted and the secured account balance decreases.
  4. You send Set Credit Limit to update the credit line based on the funds in the secured account.

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