Highnote is making its mark in the fleet segment of card issuance by driving innovative advancements. Through our seamless integrations with Visa and MasterCard, we offer a unique opportunity for large fuel card issuers and fleet management software companies to enhance their card payment capabilities and drive innovation.
Have you ever wondered how funding works for a fleet card issuance program? Highnote is here to revolutionize this process with its exceptional flexible funding capabilities. Let's dive into how it all works.
Unlike traditional commercial card programs that operate as pre-funded debit cards, Highnote issued fleet cards utilize a credit BIN, which has several technical distinctions. Highnote's fleet card programs offer two funding methods, each designed to cater to different business preferences. In a fully-funded program, clients can issue one dollar of credit for every dollar in their product funding account. On the other hand, a partially funded program allows clients to issue credit based on a calculated secured amount in the product funding account.
Let’s illustrate this with an example. Suppose there is $10,000 in a product funding account. This amount translates to $10,000 worth of credit that can be allocated across multiple accounts. For instance, if it's allocated equally among 20 accounts, each account will have $500 in available credit. The funds remain in the product funding account, while the cards become active with predefined limits. At the end of the month, if each account has spent $250 of their $500 available credit, Highnote uses Plaid and Finicity to link external bank accounts and efficiently handle the repayment process for each cardholder account. Once the repayment Automated Clearing House (ACH) transaction is successfully cleared, the available credit is replenished to $500, and the outstanding balance for each cardholder returns to zero.
The flexibility of Highnote’s platform not only allows you to customize the frequency of funding, but it also provides seamless third-party management. We understand that sometimes the volume of transactions in a month can exceed the available credit. The Highnote platform supports both recurring and one-time external account access so available credit is always accessible. Additionally, we offer integration with third-party credit facilities, expanding your funding options for fleet card programs.
But how is this different from a pre-funded debit scenario? The key distinction lies in how the funds are managed. With Highnote, the funds remain securely in the product funding account, rather than being directly transferred to individual financial accounts associated with the cards. In this scenario, each account is allocated credit, which can be tapped into, while the funds remain in one place. This approach also brings a unique reporting advantage. Unlike traditional cash balances that decrease with card activity, our Highnote Platform ledger tracks both the available credit and outstanding balance on each card. Highnote even facilitates the creation of billing statements for account holders by providing all the statement data needed to create statement templates.
We are excited about the limitless possibilities that Highnote’s fleet card capabilities offer innovators like you. Get in touch with us today to learn more about how Highnote can empower your business!