Create Secured Deposit Offer

With Highnote’s secured deposit card product feature, you can offer secured card products as a counter offer during the card product application process. Offering a secured deposit offer provides an alternative card product offering for account holders who do not meet the creditworthiness requirements for your unsecured card product.

The secured deposit card product feature works as follows:

1. An account holder applies for your unsecured card product and is DENIED.
2. The account holder receives a counter offer for your secured card product offering and accepts the counter offer.
3. When the account holder accepts the counter offer and their application is approved, an account holder financial account is issued. This financial account has the secured deposit feature attached to it.
4. After approving the account holder for the secured card product, you collect the secured deposit in your external payment system.
5. You can use a non-originated ACH transfer to move the account holder's secured deposit to your secured deposit product financial account.
6. To apply the secured deposit to an account holder's financial account, you can use an internal Highnote transfer to move the funds from your product financial account.

Before using the secured deposit product feature, you must have the Highnote team enable the feature for your card product. Contact support@highnote.com for assistance with enabling the secured deposit feature for your card product.

Once you have the secured deposit feature enabled for your card product, you can use the following query to view your card product:

During the application process, you can use the secured deposit card product feature to offer account holders a secured charge card counter offer. When the creditworthiness of an account holder does not qualify them for the card product they applied for, you can use counter offers. For more information on application counter offers, see Respond with a Counter Offer.

The account holder receives a financial account when they accept a counter offer. This financial account has the secured deposit feature enabled on it.

When an account holder accepts a counter offer and receives approval, you can create a financial account for the account holder. It includes the secured deposit feature.

Use the following mutation to issue a financial account to the account holder:

When an account holder is approved for a secured deposit card product, you collect funds in your external payment system and deposit them into the secured deposit product financial account. This account is used to send the secured deposit to the account holder’s financial account. In this transfer, the from and to financial accounts are as follows:

• from: Secured deposit product financial account
• to: Account holder financial account

Use the following query to find the product financial account with the secured deposit feature:

You can use the following mutation to simulate funding a product financial account using non-originated ACH:

You can use the following mutation to transfer a secured deposit from your product financial account to the account holder’s financial account. In the query, the from and to financial accounts are as follows:

• from: Secured deposit product financial account
• to: Account holder financial account Use the purpose input variable field as follows:
• Use the SECURED_DEPOSIT value

In the event you need to reverse a secure deposit fund distribution, you can use the following mutation. Reversing a secured deposit fund distribution is helpful if an error was made during the funds distribution process, or you need to return a deposit to an account holder when they graduate from a secured to unsecured charge card.

In the query, the from and to financial accounts are as follows:

• from: Account holder financial account
• to: Secured deposit product financial account Use the purpose input variable field as follows:
• Use the SECURED_DEPOSIT_REVERSAL value