Loan/Credit Capabilities

In MO's system, every transaction is considered a separate credit responsibility obtained by the cardholder from the issuer, whether it is a purchase or a cash advance. This method allows for the identification of individual transactions with unique offers. At the end of the billing period, all credits are combined into a single comprehensive statement.

Loan (preloan creation)

A preloan is created for authorized transactions and canceled for reversals or expirations. The preloan goes through various stages based on transaction authorization and confirmation.

Status	Description
Pending	Created upon an authorized transaction notification.
Rejected	Assigned to an unauthorized loan/transaction resulting from a rejected or unconfirmed transaction.
Completed	Granted when the processor confirms settlement for the authorized transaction.

MO's system generates a preloan with transaction authorization as a best practice. However, it is not transformed into a loan until the settlement event is confirmed.

After a preloan is generated, the process can go in a few different directions. These directions are confirming the loan, rejecting, freezing, or refinancing it.

Confirm preloan

The stage of confirming transactions post-settlement within our system involves the creation of a dedicated loan for each transaction, ensuring a meticulous record of individual financial obligations. Furthermore, these loans are linked to specific credit offers through defined rules and logic based on product and other variables.

This intricate interplay elevates our system's efficiency, precision, and transparency, establishing a sophisticated credit framework that optimally aligns with predefined rules and adapts to diverse influencing factors, enhancing the overall management of cardholders' financial activities.

Reject preloan

Clients have the flexibility to initiate the rejection of preloans within MO's system. This operational flow encompasses the creation of preloans and loans, incorporating the rejection of loans triggered by diverse factors. This process ensures seamless and responsive handling of preloan requests, allowing clients to navigate through the creation, rejection, and nuanced management of loans based on varying circumstances.

Freeze loan

MO's system has the ability to freeze requested loans. This will stop any interest accrual, fees, and charges on the loan. The loan that is frozen will not be included in future statement calculations. It's important to note that the frozen status will not stop any debt payments. If a payment is made, it will be applied to the loan based on the payment allocation configuration. Currently, this process is executed through a command by our support team.

Freeze multiple loans

This feature allows account holders to freeze multiple loans through API, eliminating the need for support team intervention.

Refinancing

MO's system has the ability to generate personalized offers for refinancing all credit card debts into a flex loan, which is essentially an installment loan. You can customize the conditions as per your requirements, such as the repayment terms, interest rates, fees, and installment plans. Our team can initiate the refinance requests when required, providing flexibility to manage your evolving financial needs.

Managing credit

To manage customer loans/credit, MO's API has endpoints to create authorizations, confirm, reject, and reverse them.

Create Authorization

POST

Create a pre-loan for an authorization event confirmed by the network to the processor.

Reverse Authorization

POST

Reverse a pre-loan amount due to a reversal event confirmed by the network to the processor.

Reject Authorization

POST

Reject or cancel a pre-loan due to a cancelation event confirmed by the network to the processor.

Confirm Loan

POST

Confirm a pre-loan or a settlement event confirmed by the network to the processor.