Close an Account

This guide provides steps for closing a Financial Account in the Test Environment. This allows you to simulate Financial Account status changes and their associated events so you can notify your Account Holders of their closed Financial Account.

Highnote agents handle account closure processes in the Live Environment for your Card Product.

Closure of a financial account can be requested by the following people or teams:

• Your team
• Account holder
• Sponsor Bank
• Highnote

The process for closing a financial account varies based on your card product type, the party requesting to close the account, and the state of the account at the time of closure.

When a financial account is closed for a card product with a rewards program, rewards may be forfeited. Any unclaimed rewards should be communicated to the account holder by your support team.

When a financial account closure initiates, the account’s status moves to PENDING_CLOSE. This status restricts certain permissions on the financial account, such as payment card authorizations. When a financial account enters PENDING_CLOSE status, a Highnote agent addresses any restrictions on the account that may prevent final closure.

Prior to closing a financial account, a Highnote agent verifies the following:

• There are no pending authorizations or transfers
• All payment cards associated with the financial account are closed
• All scheduled transfers have been cancelled
• Funds owed to the account holder are transferred
• No funds are owed by the account holder

Once a Highnote agent removes any remaining financial account restrictions, the status is set to CLOSED.

Prior to launching your card product, Highnote will work with your team to establish steps for account closure that are specific to your card product and servicing responsibilities. For questions or account closure requests, contact support@highnote.com.

Initiating an account closure in the Test Environment moves the financial account's status to PENDING_CLOSE. While the account is in a PENDING_CLOSE state, authorizations are blocked on any associated payment cards.

• In the Live Environment, a Highnote agent addresses any restrictions on the financial account that may prevent a final closure.
• In the Test Environment, no closure restrictions are placed on the financial account, allowing you to simulate the account closure process and close the financial account.

Use the following mutation to simulate initiating an account closure:

The final step of account closure differs in the Live and Test Environments:

• In the Live Environment, after a Highnote agent has resolved any restrictions on the account, the financial account’s status moves from PENDING_CLOSE to CLOSED.
• In the Test Environment, you can simulate account closure to move the financial account status to CLOSED without resolving account closure restrictions.

Use the following mutation to simulate closing an account:

When closing a financial account, we recommend notifying the account holder of any related account closure events. Subscribe to the following events to notify account holders of account closure events:

• ACCOUNT_STATUS events: The ACCOUNT_STATUS_CLOSED event will notify you when an account has been closed. You can send a confirmation messaged to the account holder to inform them of their financial account’s change in status. For more information, see the Financial Account Status events reference.

• ACH_FUNDS_WITHDRAWAL events: When funds are owed to your account holder prior to account closure, ACH_FUNDS_WITHDRAWAL events can be used to notify account holders of initiated funds transfers. For more information, see the ACH Funds Out events reference.

To learn more on how to subscribe to event notifications, see the Notifications guide. To determine if specific communication is required by regulation for your card product, contact your Highnote sales representative.