Create Credit Plans

Credit plans provide flexible and configurable terms for credit card products. Credit plans define the following:

• Interest rate
• Interest rate type
• Interest accrual method
• Pricing and policy terms for specific balance types

Credit plans vary depending on your credit policies. For example, a credit plan might have a fixed interest rate, compounding interest, and pricing terms for both purchases and cash advances.

Credit plans are linked to financial accounts and determine payment obligations on billing statements. Financial accounts can be assigned different credit plans; however, the credit plan settings should match the pricing and terms you’ve provided to your account holders in their Cardholder Agreement at the time of application.

In the live environment, Highnote will create credit plans for your card product. To test your card product’s integration, you can create credit plans in the test environment. This guide provides an overview for testing credit plans in the test environment.

Credit plans are created from credit plan templates. You can view a list of credit plan templates and their associated terms, determined by your card product type.

Use the following query to view credit plan templates:

From a credit plan template, you can create a credit plan and define APR and the percentage of available credit limit. The assigned APR must fall within the minimum and maximum range defined on the template. Refer to the following guidance when defining credit limit usage:

• For credit plans with a PURCHASE balance type, you should allow the account holder to utilize 100% of their financial account's credit limit.
• For credit plans with other balance types, such as cash advances, you may choose to allow only a portion of the financial account’s credit limit to be utilized. For example, you could allow 25% utilization.

Once a credit plan has been created, you can't modify the plan. This ensures an unauthorized change in terms does not occur on any financial accounts. Newly created credit plans cannot be applied to previously booked financial accounts.

Use the following mutation in your test environment to create a credit plan:

Note: Credit plans can only be activated in the test environment. Highnote will activate your credit plans in the live environment.

After creating a credit plan for your card product, you must activate it for the rates and terms to apply to new financial accounts. When activating, you can optionally set an effective start and end date. If no values are provided for start and end date, the plan will be effective upon activation and utilized until a new credit plan with the same balance type is activated on your card product.

You cannot have two active credit plans that apply to the same balance type at the same time. However, a new credit plan can be activated and applied to newly issued financial accounts. If you have multiple credit plans, the account holder’s application date will determine which credit plan to apply to the issued financial account based on the credit plan’s effective dates.

Use the following mutation to activate a credit plan in your test environment:

You can view a paginated list of active and inactive credit plans on your card product using the following query: