Schedule Repayments

For credit card products, it's important to provide cardholders with the ability to make payments toward outstanding balances or debts. The following payment options are available:

• Recurring payments
• One-time payments

The Automated Clearing House (ACH) is an electronic funds transfer network that facilitates interbank transfers. Highnote utilizes ACH to send money from an account holder’s external bank account to their Highnote financial account when scheduling payments. The movement of funds using ACH typically takes three to five business days.

This guide covers how to set up one-time and recurring payment schedules for account holders.

To avoid late payments, it is important to understand the timing and processing details for payment schedules. Refer to the following guidelines for payment schedules:

• Scheduling payments: To ensure a payment is considered on time, initiate the payment on or before the due date.
  • Before 11 PM EST: Payments scheduled before 11 PM EST are considered initiated on the same calendar day. For one-time payments scheduled on the due date, ensure the API call used to initiate the payment schedule is sent before 11 PM EST.
  • Before 3 PM EST: Payments scheduled before 3 PM EST will be processed by the bank on the same day.
  • Weekends and bank holidays: Payments scheduled on a Saturday, Sunday, or bank holiday will be recognized as initiated on that day, but the bank will process them on the next business day.
• Processing and posting
  • Initiation: Once a payment is initiated, a pending credit for the payment amount is recorded on the account holder's financial account.
  • Processing time: The payment will typically take three to five business days to clear once the bank processes the ACH payment.
  • Posting: The payment will not be posted to the financial account until the funds have cleared.
• On-time payments: The available credit on a financial account may not be released until a payment has posted, depending on your program's credit policies.

We recommend communicating to following tips to your cardholders to help them avoid late payments, fees, or impacts to their credit:

• Plan ahead: Schedule payments at least three to five business days before the due date to account for processing time.
• Consider bank holidays: Be mindful of weekends and bank holidays, as these can delay payment processing.
• Monitor pending credits: Check your account to ensure the pending credit is recorded after initiating a payment.

Note: Scheduled payments are initiated by the account holder. You can not schedule payments for account holders in the live environment.

Recurring payments can be scheduled based on the outstanding balance or current amount due, and occur on a set frequency. In the test environment, a transfer ID will be generated within five minutes of scheduling a payment on the current date.

Use the findScheduledTransferEvent query to find a transfer event ID and simulate changing the transfer status:

Note: Scheduled payments are initiated by the account holder. You can not schedule a payment for an account holder in the live environment.

One-time payments can be scheduled based on a balance amount or a custom amount. A scheduled payment will not be initiated if the financial account has an OUTSTANDING_BALANCE less than or equal to $0.

In the test environment, a transfer ID will be generated within 5 minutes of scheduling a payment for today. Use the findScheduledTransferEvent query to find a transfer event ID and simulate changing the status of the transfer:

Note: Payments must be canceled by 9:00 AM EST the day the payment is scheduled to ensure the payment is not initiated. If a cancellation is attempted on a recurring payment that has already been initiated, all future payments on the recurring schedule will be canceled.

Both one-time and recurring payment schedules can be canceled. If a change to the payment schedule is required (ex: date, amount, or external bank account) you must first cancel the original scheduled payment and then create a new one-time or recurring payment schedule.

Use the following mutation to cancel a payment:

Use the following query to find a scheduled payment. You can use this query to display scheduled payments in your website or application:

To simulate repayments in the test environment, see Simulate Repayments.