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10 minute read
June 15, 2022

About Credit Account Journal Entries

A credit account journal entry is a record of an entry made on a credit account journal, such as a purchase transaction, fee, adjustment, and more.

Journal entries originate when a journal entry event occurs, such as a cardholder making a purchase, which creates purchase journal entry, or an account holder making a payment past due, which creates a late payment fee journal entry. For more on journal entry events, see Credit journal entry events.

On the Marqeta platform, you can retrieve journal entries on a credit account by using the /credit/accounts/{account_token}/journalentries endpoint. For the complete endpoint reference, see List account journal entries.

At the end of this guide, you should understand:

  • What journal entries are and how they originate.

  • What the journal entry groups.

  • Each journal entry group’s details and event types.

Journal entry statuses

Journal entries can have one of two statuses.

  • PENDING - The journal entry affects the account’s pending balance. The account’s available credit is temporarily decreased in the journal entry amount, unless the journal entry is an initiated dispute or initiated payment.

  • POSTED - The journal entry is posted to the account and the account balance is increased in the journal entry amount. In the case of a dispute resolved in the account holder’s favor or a completed payment, the hold on available credit is released.

Journal entry groups

Every journal entry belongs to a group, which is represented by the group field and useful for categorizing journal entries.

Journal entries can belong to one of the following groups:

  • PURCHASE

  • REFUND

  • DISPUTE

  • FEE

  • REWARD

  • INTEREST

  • PAYMENT

  • ADJUSTMENT

  • BALANCE_REFUND

  • ORIGINAL_CREDIT

For more on each group, see their respective sections in this guide.

Journal entry details

Each journal entry contains a detail object, which is represented by detail_object and contains fields specific to the journal entry’s group. These fields vary based on the group.

For example, a journal entry belonging to the purchase group returns purchase details, which are fields that come from the card network and are relevant to purchase transactions. A journal entry belonging to the reward group will not return purchase details but rather, reward details, which are fields relevant to rewards.

Each journal entry also contains the detail_token field, which identifies a journal entry’s details and populates fields in detail_object with values specific to that journal entry.

Purchases

When a cardholder makes a purchase, a journal entry belonging to the PURCHASE group is created on the credit account. Merchants may send purchases as single-message or dual-message transactions. For more, see Transactions in the payments ecosystem in the About Transactions guide.

Purchase details

When retrieving a purchase journal entry, purchase details are the fields returned in the detail_object. These fields come from the card network and are conditionally returned based on the journal entry’s type. For more on these fields, see Transactions.

The following code sample shows a journal entry’s detail_object containing purchase details for an authorization clearing:

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Purchase events

The Marqeta platform sends webhook notifications when purchase authorizations and purchase authorization clearings occur. You can configure a webhook to capture the following purchase events:

  • authorization

  • authorization.incremental

  • authorization.clearing

  • authorization.reversal

  • authorization.advice

  • authorization.reversal.issuerexpiration

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial.

Purchase refunds

When a merchant initiates a purchase refund, a journal entry belonging to the REFUND group is created on the credit account. Merchants may send refunds as single-message or dual-message transactions. For more, see Transactions in the payments ecosystem in the About Transactions guide.

Purchase refund details

When retrieving a purchase refund journal entry, refund details are the fields returned in the detail_object. These fields come from the card network and are conditionally returned based on the journal entry’s type. For more on these fields, see Transactions.

The following code sample shows a journal entry’s detail_object containing purchase details for a refund:

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Purchase refund events

The Marqeta platform sends webhook notifications when purchase refunds occur. You can configure a webhook to capture the following refund events:

  • refund

  • refund.authorization

  • refund.authorization.reversal

  • refund.authorization.clearing

  • refund.authorization.reversal.issuerexpiration

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial.

Interest

When the conditions that cause an interest charge to be applied on a credit account are met, such as a cardholder carrying a balance from the previous month at the end of a billing period, a journal entry belonging to the INTEREST group is created on the account.

You can configure interest calculation during credit product creation. For more, see Creating a credit product in Managing Credit Programs in the Marqeta Dashboard.

Interest details

When retrieving an interest journal entry, interest details are the fields that are returned in the detail_object, including interest charge calculation data. For field descriptions, see the Retrieve account journal entry response fields.

The following code sample shows a journal entry’s detail_object containing interest details:

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Interest event

The Marqeta platform sends webhook notifications when interest charges are applied on a credit account. You can configure a webhook to capture this interest event:

  • account.interest

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial.

Fees

When the conditions that cause a fee to be applied on a credit account are met, a journal entry belonging to the FEES group is created on the account.

  • A late payment is applied when a payment is made past the payment due date.

  • A returned payment is applied when a completed payment is returned.

  • A minimum interest is applied when an account is charged interest that is lower than the minimum interest amount.

When creating a credit product, you can select the fees that you want to include on the product. Then, when creating a credit account based on that product, you can define the selected fee’s schedule, method, value, and effective date. You cannot define fees that you did not select during product creation, and only defined fees can be entries on the credit account journal, provided the conditions to apply the fee are met. For more on including fees during credit product and account creation, see Creating a credit product (in the Marqeta Dashboard) and Create account.

Fee details

When retrieving a fee journal entry, fee details are the fields that are returned in the detail_object. For field descriptions, see the Retrieve account journal entry response fields.

The following code sample shows a journal entry’s detail_object containing fee details:

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Fee events

The Marqeta platform sends webhook notifications when late payment, returned payment, and minimum interest fees are applied on a credit account. You can configure a webhook to capture the following fee events:

  • account.fee.payment.late

  • account.fee.payment.returned

  • account.fee.interest.minimum

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial.

Rewards

When the conditions that cause a reward to be applied on a credit account are met, a journal entry belonging to the REWARD group is created on the account.

  • A cash back reward is applied as cash back statement credits when a card holder makes a qualifying purchase that results in cash back.

You can create a reward using the /credit/accounts/{account_token}/rewards endpoint. For the endpoint reference, see Create account reward.

Reward details

When retrieving a reward journal entry, reward details are the fields that are returned in the detail_object. For field descriptions, see the Create account reward response fields.

The following code sample shows a journal entry’s detail_object containing reward details:

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Reward events

The Marqeta platform sends webhook notifications when rewards are applied on a credit account. You can configure a webhook to capture the following reward events:

  • account.reward.cashback

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial.

Payments

When an account holder makes a payment toward their credit account balance, a journal entry belonging to the PAYMENT group is created on the account.

You can create a payment using the /credit/accounts/{account_token}/payments endpoint. For the endpoint reference, see Create account payment. For the guide, see the About Credit Account Payments.

Payment details

When retrieving a payment journal entry, payment details are the fields that are returned in the detail_object. For field descriptions, see the Retrieve account payment response fields.

The following code sample shows a journal entry’s detail_object containing payment details:

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Payment events

The Marqeta platform sends webhook notifications when payment activity occurs on a credit account. You can configure a webhook to capture the following payment events:

  • account.payment.pending

  • account.payment.completed

  • account.payment.returned

  • account.payment.canceled

  • account.payment.refunded

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial. For more on payments, see About Credit Account Payments.

Disputes

When a purchase is disputed, a journal entry belonging to the DISPUTE group is created on the credit account. For more, see About Credit Account Disputes.

Dispute details

When retrieving a dispute journal entry, dispute details are the fields that are returned in the detail_object. For field descriptions, see the Retrieve account dispute response fields.

The following code sample shows a journal entry’s detail_object containing dispute details:

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Dispute events

The Marqeta platform sends webhook notifications when dispute events occur on a credit account. You can configure a webhook to capture the following dispute events:

  • account.dispute

  • account.dispute.reversed

  • account.dispute.won

  • account.adjustment.lost

  • account.adjustment.lost.graceperiod

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial.

Adjustments

When the amount of an existing journal entry or the account balance is adjusted, a journal entry belonging to the ADJUSTMENT group is created on the credit account.

There are many reasons to adjust a journal entry or account balance, including interest adjustments due to returned or canceled payments, waived fees, account write-offs, and more.

You can adjust the amount of a journal entry or account balance by creating an adjustment using the /credit/accounts/{account_token}/adjustments endpoint.

To adjust a journal entry amount, pass the journal entry’s token in the original_journal_entry_token field. To adjust an account balance, which creates a general credit adjustment that does not affect a journal entry, do not pass original_journal_entry_token and pass a negative value in amount, which is the adjustment amount. For more, see Create account adjustment.

Adjustment details

When retrieving an adjustment journal entry, adjustment details are the fields that are returned in the detail_object. For field descriptions, see the Retrieve account adjustment response fields.

The following code sample shows a journal entry’s detail_object containing adjustment details:

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Adjustment events

The Marqeta platform sends webhook notifications when adjustments are applied on a credit account. You can configure a webhook to capture the following adjustment events:

  • account.adjustment

  • account.adjustment.purchase

  • account.adjustment.purchase.graceperiod

  • account.adjustment.fee

  • account.adjustment.interest

  • account.adjustment.reward

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial.

Credit balance refunds

When an account holder’s credit account balance is negative and a credit balance refund is issued to bring the balance closer to 0.00, a journal entry belonging to the BALANCE_REFUND group is created on the credit account.

You can create a balance refund using the /credit/accounts/{account_token}/creditbalancerefunds endpoint. For the endpoint reference, see Create credit balance refund.

Balance refund details

When retrieving a balance refund journal entry, balance refund details are the fields that are returned in the detail_object. For field descriptions, see the Create credit balance refund response fields.

The following code sample shows a journal entry’s detail_object containing balance refund details:

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Balance refund event

The Marqeta platform sends webhook notifications when balance refunds are issued on a credit account. You can configure a webhook to capture the following balance refund event:

  • account.balancerefund

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial.

Original credit transactions (OCT)

When the card network pushes an OCT payment that disburses funds to a credit card, a journal entry belonging to the ORIGINAL_CREDIT group is created on the credit account.

OCT details

When retrieving an OCT journal entry, OCT details are the fields returned in the detail_object. These fields come from the card network and are conditionally returned based on the journal entry’s type. For more, see the original_credit object in Transactions.

The following code sample shows a journal entry’s detail_object containing OCT details:

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OCT events

The Marqeta platform sends webhook notifications when OCT events occur. You can configure a webhook to capture the following OCT events:

  • original.credit.authorization

  • original.credit.authorization.reversal

  • original.credit.authorization.clearing

  • original.credit.authpluscapture

  • original.credit.authpluscapture.reversal

For more on events, including event descriptions, see Credit journal entry events. For more on subscribing to webhook notifications, see the About Webhooks tutorial.

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