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API References:

• Create a credit card

Mbanq Cloud's CORE capabilities empower Neo Banks to launch Unsecured Credit Cards, opening up new opportunities and benefits for both banks / platforms and customers. From a bank's perspective, offering unsecured credit cards allows access to a wider market of customers, particularly those with good credit. By using promotions and welcome offers, banks can attract customers and demonstrate their trustworthiness and customer-focused approach.

Unsecured credit cards provide several advantages for customers. One notable benefit is the increased protection against fraud. In the unfortunate event of fraudulent activity, the customer is not held liable for the unauthorized transactions, unlike with a debit card where their own funds may be at risk.

Credit cards also offer attractive reward programs, allowing customers to make their spending count. These programs provide initial welcome bonuses and ongoing benefits such as air miles or cash back, enhancing the value of everyday transactions.

Furthermore, credit cards often come with various consumer protections, including rental car insurance and travel insurance. These features provide additional peace of mind when using the card for specific purposes.

The universal acceptance of credit cards, especially those on the Visa and Mastercard networks, simplifies payments for services like hotels and car rentals. Unlike with debit cards, where amounts may need to be blocked, credit cards allow for more flexibility as charges can be made as needed, providing a smoother experience for customers.

One crucial advantage of unsecured credit cards is the opportunity to build or improve credit ratings. Through responsible spending and timely repayments, customers can establish a positive credit history, which is continually reported to credit bureaus. This enables them to build credit within a relatively short period of time.

In summary, leveraging Mbanq Cloud's CORE capabilities enables Neo Banks to offer unsecured credit cards, benefiting both banks/platforms and customers alike. The flexibility, rewards, consumer protections, universal acceptance, and credit-building potential make unsecured credit cards a valuable financial tool.

Business Set Up

There are a number of business action items that need to be completed to obtain approval for launching a credit program with Mbanq and a Partner Bank. These action items fall into the following main categories:

Application

• Application for Credit Card program
• Compliance Review
  • Underwriting procedure and model
  • Credit Committee Charter
  • Marketing materials
  • Adverse Action Notices and other communication templates
  • Collections policy
  • Application and origination screen flow
  • Servicing screen flow
  • Disputes process
• Submission to Partner Bank
• Approvals
• Register Card BIN (Bank Identification Number) with the Visa Network
• Print and ship physical cards to end users (if requested)
• Fund the required credit and reserve accounts as per the agreements

Credit and Reserve Account Funding

The credit risk for the credit extended to the consumer or business is the responsibility of the Platform. The Platform will have to establish and fund two main accounts:

• Credit Line account - these funds are set aside and represent the total amount of credit that the Platform can extend to its customers at any given time. This credit line account gets replenished when the customer makes the payment against the total outstanding balance on their account.
• Reserve account - this reserve account covers other delinquencies such as unpaid fees, unpaid invoices for card printing, etc.

Product Set Up

In order to enable customers to use their charge cards, your Platform will have to integrate with Mbanq's APIs.

• Begin by setting up the Charge Card product via the Mbanq console (Credit Card Product Setup)
  • Create a new charge card product for your platform instance
  • Be sure to select Unsecured for the account type
  • Set the authorizations and rate limits

Card Issuing Integration

• Build integrations with the following Mbanq APIs:
  • Accounts (Create Account) Create consumer users
  • Create Card (Create Credit Card) Create a new card instance
  • Issue a New Card (Issue a New Card) Issue a virtual or physical card
  • Approve Credit Card (Approve Credit Card) Approve and authorize a card for use
  • List Transactions (List Transactions) Return a list of all the card transactions for a date range
  • Get Transaction Details (Get Transaction Details) Return the details for a specific transaction
  • Retrieve a Statement (Retrieve a Statement) Return PDF or JSON version of a card account statement
  • Make a Payment (Make a Payment) Card account payment internal or via ACH
  • Adjust Card Limits (Adjust Card Limits) Change the limit and velocity caps for a specific card account
  • Dispute a Transaction (coming soon)
• Card Management
  • Toggle Card Features (Toggle Features) Turn on and off various card features
  • Suspend Card (Suspend) For non-payment or if lost or stolen
  • Terminate Card (Terminate) When an account is closed or when fraud is confirmed