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5 minute read
August 10, 2022

About Credit Accounts

A credit account is a revolving line of credit that enables cardholders to borrow funds and have their purchases charged to the account to be repaid later.

The Marqeta platform supports consumer credit accounts, which are accounts held by individuals. Credit accounts are represented by the accounts resource and can be created upon approving a credit application.

On the Marqeta platform, credit accounts are represented by the accounts resource. For the complete endpoint reference, see Credit Accounts.

At the end of this guide, you should understand:

  • The different ways to create a credit account.

  • The credit account object on the Marqeta platform.

  • The relationship between a credit account, card, and user.

  • The process to onboard a credit account.

Associated resources

Credit accounts are associated with the following resources on the Marqeta platform:

Credit offers on the Marqeta platform determine the properties of associated credit accounts. * An account holder is the primary user responsible for the credit account. * Users are cardholders who own credit cards. * Credit cards are used to make purchases with the available balance of the associated credit account. * Transactions are purchases made by cardholders that affect the credit account’s balances.

The characteristics of a credit account answer the following questions about associated users and cards:

  • Who is the account holder, the user responsible for the credit account?

  • How much credit is available for the card to access?

Relationship rules

The following rules apply to account-card relationships:

  • A credit account can be accessed by multiple credit cards.

  • A credit card can access only one credit account.

The following rules apply to card-cardholder user relationships:

  • A card can be held by only one user, known as a cardholder.

  • A cardholder can hold multiple cards.

The following rule applies to account-account holder user relationships:

  • An account can be held by only one user, known as the account holder.

  • A user can be the account holder on multiple accounts.

Account characteristics

The following characteristics belong to credit accounts.

Status

Credit accounts can have one of the following statuses:

  • UNACTIVATED – The credit account is awaiting activation by the account holder.

  • ACTIVE – The credit account is active and the account holder and any authorized users can access the credit line.

  • SUSPENDED – The credit account is temporarily inactive and its credit line cannot be accessed.

  • TERMINATED – The credit account has been closed.

Balances and credit

The purchase balance, available balance, and credit limit determine how much a cardholder can spend.

  • Purchase balance – The current balance of the credit account.

  • Available credit – The amount of credit currently available to spend.

  • Credit limit – The maximum balance an account can carry, and the balance currency.

Key days

The values for key days for an account are derived from its associated credit product.

  • The billing cycle day is the day of month a new billing cycle begins. At the end of a billing cycle, you bill the account holder for any unpaid purchases and fees incurred during the billing cycle.

  • The payment due day is the day of month that payment for the previous billing cycle is due.

Config

Product configurations made when creating a credit product can be defined on the account. Any configuration values can be set during account creation.

Note
Only configurations made on associated credit products can be defined on the account. For example, if a late payment fee was the only fee configured on the associated credit product, then only the late payment fee value can be defined on the account.
Usages

You can define how a credit account is used and what the types of balances are permitted on the account. Each usage type contains usage-based fees and rewards, such as FX fees, that are linked to the purchase balance.

The onboarding process

  • You integrate with the Marqeta platform.

  • You approve a credit application.

  • You create a user with attributes based on information provided in their credit application.

  • You create a credit account with attributes and behaviors based on its associated credit product.

  • You designate the user created in step two as the account holder.

  • You create a credit card for the user to use.

  • The user receives and activates their credit card.

Tutorial

This tutorial guides you through the process of onboarding a credit account by walking through how to create an account and card.

Step one: Obtain a user token

Obtain an existing user token by sending a GET request to /users. For details, see the Users API reference.

Step two: Create a credit account

Create the credit account and customize its attributes and behaviors.

Send a POST request to the /credit/accounts endpoint with at least the following fields included:

  • token — Set the value to a unique identifier of the account.

  • name — Set the value to the name of the account.

  • credit_product_token — Set to the value of the associated credit product’s token.

  • account_holder_token — Set to the value of the associated account holder’s token.

  • credit_limit — Set to the value of the maximum balance the account can carry.

  • The config object — Include the following fields:

    • billing_cycle_day — Set to the value of 1.

    • payment_due_day — Set to the value of 31.

    • The fees array — For each fees object, include the following fields:

      • type — Set the value to the fee type, either LATE_PAYMENT_FEE or RETURNED_PAYMENT_FEE.

      • The schedule array — For each schedule object, include the following fields:

        • method — Set the value to FLAT.

        • value — Set the value to the fee amount.

  • The usages array — For each usages object, include the following fields:

    • type — Set the value to PURCHASE.

    • The aprs array — For each aprs object, include the following fields:

      • type — Set to the value of GO_TO.

      • The schedule array — For each schedule object, set the value field to the APR value, 1-100.

The following code block shows a sample account as it would appear in a POST request:

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Step three: Create a credit card

Create a credit card for which to conduct credit transactions using the account’s available credit.

Send a POST request to the /credit/accounts/{account_token}/cards endpoint with at least the following fields included:

  • token — Set the value to a unique identifier of the credit card.

  • card_product_token — Set to the value of the associated card product’s token.

  • user_token — Set to the token value of the user defined in step one.

Tip
This links the credit card to the account. To further configure the newly created card, send a PUT request to the /cards endpoint.

The following code block shows a sample credit card as it would appear in a POST request:

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Step four: Update a credit account (Optional)

You can update an account’s fees and APRs' type and schedule.

You can use schedules to update usage APRs and config fees. You must pass the effective_date, which can be either back-dated or future-dated. Each update to schedules replaces a prior schedule in effect on the credit account.

Send a PUT request to the /credit/accounts/{token} endpoint with the fields you want to change in the config object or usages objects set to the values you want. You can change the following fields:

  • config.fees.type

    • config.fees.schedule.method

    • config.fees.schedule.value

    • config.fees.schedule.effective_date

  • usages.type

    • usages.aprs.type

    • usages.aprs.schedule.value

    • usages.aprs.schedule.effective_date

The following code block shows a sample credit account update as it would appear in a PUT request:

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Step five: Update account status (Optional)

Send a POST request to the credit/accounts/{account_token}/accounttransitions endpoint with the status field set to either ACTIVE or TERMINATED. For more on account statuses, see Status earlier on this page.

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