Payroll Advance

To use Payroll Advance, your financial accounts must have the PayrollAdvanceFinancialAccountFeature feature enabled.

The Highnote team will assist with setting up and enabling the payroll advance feature for your card product.

In addition to enabling the feature, you must integrate with a payroll data source partner to access employment data with your customer's consent and if necessary, determine a pre-funding amount.

Before initiating an advance, you must create an employer financial account. This account is used to initiate a transfer from your product funding account to the employee financial account.

Use the following mutation to issue an employer financial account:

Payroll advances start with retrieving payroll data from a partner source. Once this data is retrieved, an account holder can request an advance for their employee financial account. Payroll advance transfers are internal transfers between Highnote financial accounts.

Use the following mutation to initiate a payroll advance after a request is received:

Use the following query to list all payroll advance payable and receivable ledgers, their outstanding balances, and additional relevant data:

Payroll advance repayment is received using deposit initiated via a non-originated ACH transfer. Repayment occurs in the following order of events:

1. The employee provides demand deposit account (DDA) details for their employee financial account to their payroll provider.
2. Employee initiates the payroll advance repayment deposit.
3. Once Highnote receives the payroll advance repayment deposit, you must send an API call to confirmPayrollDeposit and provide the employer financial account ID. You must confirm payroll advance repayment deposits by 11:00 AM Eastern Standard Time (EST), one business day before the AchExternallyInitatedEvent settlement date.
4. If the repayment deposit is confirmed, it processes as a payroll advance repayment.
5. If the repayment deposit is not confirmed, Highnote deposits the funds into the employee financial account without advance repayment.

You can monitor and confirm payroll deposits using the Payroll advance repayment status notification. This notification triggers when a repayment processes and provides the status of the repayment.

For step three in the repayment process, use the following mutation to confirm a payroll advance repayment deposit. Use isPayrollDeposit as an input variable: