Secured Credit Workflows

This guide contains workflows that illustrate the processes for creating and managing Secured Credit.

Secured credit account structure

This flowchart is an example of how you might structure new accounts for a Three-Account Secured Credit product. Your SoFi Tech Solutions representative can help you build a process that works in your own system. Steps are described below.

1. A new customer requests a secured credit account.
2. You send the Create Account endpoint to create the primary account.
3. You send the Add Account endpoint to create the credit account and link it to the deposit account.
4. You send the Add Account endpoint a second time to create the secured credit account and link it to the deposit account.
5. SoFi Tech Solutions sends you the CAPP: app_completed event for the primary account.
6. The account holder deposits funds into the secured credit account.
7. SoFi Tech Solutions sets the account credit limit.*
8. SoFi Tech Solutions sends the charge card to be embossed.
9. The customer receives the charge card and requests to activate it.
10. You send the Activate Card endpoint to activate the charge card. (See Card activation in Setting Up a Card Program for information about other activation options.)

_{*For SoFi Tech Solutions clients that implemented Secured Credit prior to October 2023, you send the Set Credit Limit endpoint to establish the credit limit.}

Secured credit account structure with authorized users

This flowchart is an example of how you might structure a product with a secured credit account with authorized users. Your SoFi Tech Solutions representative can help you build a process that works in your own system. Steps are described below.

1. A new authorized user requests a secured credit account.
2. To create the authorized user account, send the Create Account endpoint with these values:
   • authorizedUser: 1
   • sharedBalance: 1
   • primaryAccount: PRN of the primary account

• Only "reportable" authorized users get the key credit-building benefits of a secured credit product. You must collect the authorized user's PII, specifically dateOfBirth and social security number(SSN), when you call Create Account to ensure they are reported in the Metro 2 file. See Customer ID Types for details on collecting the SSN.

3. SoFi Tech Solutions sends you the CAPP: app_completed event for the authorized user account.
4. A charge card is created and SoFi Tech Solutions sends the card order to your embosser.
5. The customer receives the physical charge card and requests to activate it.
6. You send the Activate Card endpoint to activate the charge card (see Card activation in Setting Up a Card Program for information about other activation options.)
7. Follow PIN-set procedure if your card has a PIN.

Secured credit authorization and settlement

This flowchart illustrates how a Secured Credit transaction is authorized and settled. Steps are described below.

1. An account holder makes a purchase over card network rails and the card network sends an authorization request.
2. You or SoFi Tech Solutions approve the authorization request based on the line of credit.
3. If the authorization request is approved, SoFi Tech Solutions places a hold for the authorized amount. The account holder’s available balance is reduced on the collateral account.
4. SoFi Tech Solutions sends the BAUT: auth event with the available balance in the open_to_buy field.
5. The card network sends the settlement batch file.
6. SoFi Tech Solutions directs the issuing bank to pay the card network.
7. SoFi Tech Solutions backs out the authorization hold and sends you the SETL: setl event.
8. The monthly invoice is sent to the account holder.
9. If autopay is enabled for a cardholder’s account, SoFi Tech Solutions transfers the full balance of the previously calculated billing cycle from the collateral account on the scheduled date.
10. SoFi Tech Solutions sends you the autopay_success_event.
11. The issuing bank receives repayment.
12. If the account holder cannot pay down the credit limit from the primary account, funds may be recovered from the secured credit account.

Collateral account funds flow

These illustrate the movement of funds into and out of the collateral account, and the resulting credit limit adjustment. This only applies to Two-Account and Three-Account. The flow of funds between accounts is automated for Dynamic Funding.

Move funds into the collateral account

1. The account holder requests to move funds from one account into the collateral account.
2. You send the Create Account Transfer request.
3. Funds are transferred and the secured account balance increases.
4. SoFi Tech Solutions updates the credit limit based on the funds in the secured account.*

*For SoFi Tech Solutions clients that implemented Secured Credit prior to October 2023, you are responsible for updating the credit limit. See Set Credit Limit endpoint.

Move funds out of the collateral account

1. The account holder requests to move funds out of the collateral account and into another account.
2. You send a Create Adjustment or Create Payment request.
3. Funds are adjusted and the collateral account balance decreases.
4. SoFi Tech Solutions updates the credit limit based on the funds in the secured account.

*For SoFi Tech Solutions clients that implemented Secured Credit prior to October 2023, you are responsible for updating the credit limit. See Set Credit Limit endpoint.