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Handling Account Delinquency


The Highnote team must set the delinquency credit policy on your Card Product.

With Credit Card Products, as Account Holders borrow against their lines of credit, receivables are created on their accounts. Receivables are purchases a customer has made on their account that they must pay back and are represented by the Account Holder's outstanding account balance. Receivables can become delinquent when the Account Holder has not made the minimum payment on their billing statement by the due date.

An Account Holder’s Financial Account will display the following information for delinquencies:

  • delinquencyStartedOn - The due date of the oldest, delinquent billing statement on the Financial Account
  • totalDaysDelinquent - The number of days since the oldest, delinquent billing statement’s due date, as of today
  • totalAmount - The total delinquent amount on the Financial Account, as of today
  • totalNumberOfCycles - The number of billing cycles in which the Financial Account has been delinquent, as of today

A Financial Account's billing cycle will display the following information for delinquencies:

  • daysDelinquent - The number of days delinquent for the billing cycle, as of today
  • amount - The past due amount for the cycle’s billing statement, as of today
  • state - The state of the billing cycle at the periodEnd

Financial Account Attributes

You can manage credit risk by notifying customers of delinquencies, performing collections, or suspending their Financial Account authorizations. When a customer’s Financial Account’s totalDaysDelinquent meets or exceeds your Product’s delinquency policy, a Financial Account Attribute will be added. You can use the Financial Account Attributes Events Reference to send emails, push alerts, and notifications to account holders.

The following table provides an overview of supported Financial Account Attributes:

Financial Account AttributeDescriptionTest Environment Default Setting
DELINQUENTThe Financial Account is considered delinquent based on your Product’s policy; no restrictions have been placed on the Financial Account.totalDaysDelinquent >= 30 days
DELINQUENT_SUSPENDEDThe Financial Account is excessively delinquent based on your Product’s policy and the Financial Account’s status is SUSPENDED; future authorizations are blocked on all associated Payment Cards.totalDaysDelinquent >= 90 days
CHARGE_OFFThe Financial Account has failed to make minimum payment for X days, based on your Product's policy, and will be closed. The Financial Account Attribute of CHARGE_OFF is added and the Financial Account status is set to SUSPENDEDtotalDaysDelinquent >= 180 days

When a payment is made and a Financial Account’s totalDaysDelinquent meets your Product’s delinquency policy, Highnote will remove the Financial Account Attributes and update the account to current. You can subscribe to the Financial Account Attributes events to receive notifications about Financial Account's delinquency statuses.

Find Financial Account’s Delinquency Status

You can view the totalDaysDelinquent and totalAmount on an individual Financial Account. You can also view the daysDelinquent and amount delinquent for an individual billing statement.

If the Financial Account is current, or newly created and does not yet have a closed billing cycle, Highnote will return no delinquency data.

You can use the following query to find a Financial Account's delinquency status:

Charge Off Account

When a Financial Account's receivable balance is determined to be uncollectible based on your Card Product's accounting rules, they are charged off as an expense. A credit card balance is typically charged off when the Account Holder has not met the billing statement's minimum payment for 120 to 180 days. In the Live Environment, this length of time will be determined by your Card Product settings during setup.

When a charge-off occurs, the following events take place:

  1. The Financial Account will receive a CHARGE_OFF attribute and its status is set to SUSPENDED.
  2. The Highnote team will then charge off the balance and close the Financial Account based on your Card Product settings.
  3. Any unpaid balance, including the principal balance, fees, or interest charges are written off as an expense.
  4. The Highnote team will provide your team with monthly reporting.

You can subscribe to FINANCIAL_ACCOUNT_ATTRIBUTE_ADDED_CHARGE_OFF events to receive notifications when a Financial Account has been charged off. We recommend notifying the Account Holder of their account closure when this occurs.

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