Manage credit termsPrivate preview
Learn how to manage the credit terms for connected accounts.
Change your credit terms by updating a connected account’s credit_limit_amount or credit_period_interval. You can also deactivate a connected account’s ability to spend funds supported by your platform’s Issuing account.
Update the credit limit
You can increase or decrease a connected account’s credit limit by updating their CreditPolicy’s credit_ at any time. The following example increases the connected account’s credit limit from 1,000 USD to 2,000 USD:
Example response
{ "livemode": true, "credit_limit_amount": 200000, // 2,000.00 USD "credit_limit_currency": "usd", "credit_period_interval": "month", "credit_period_interval_count": 1, "days_until_due": 1, "last_effective_attributes": { "effective_until": time_of_update_to_credit_limit, "credit_limit_amount": 100000, "credit_period_interval": "month", "credit_period_interval_count": 1, "days_until_due": 1, "status": "active", }, "upcoming_attributes": nil }
This action triggers an issuing_ webhook event and immediately updates the credit_ field on the CreditPolicy.
Use caution when decreasing the credit_ on an account because it can lead to instant authorization declines if the account has already spent more than the new credit_.
Update the credit period
You can change a connected account’s credit period by updating the fields in the upcoming_attributes hash. You must pass in an effective_ timestamp when setting the upcoming_ to schedule when you want the changes to take effect. We recommend that you notify the connected account about the changes to their credit period (your Collections and Servicing Policy might require this).
Using our previous example, let’s say Gymbox decides to change Barbell’s credit period interval from monthly to 15 days, and Gymbox wants this change to take effect at the start of the next month. Gymbox updates the connected account’s CreditPolicy as follows, using the upcoming_ hash:
The activation timestamp of the credit policy must be at the 00:00 UTC mark.
Example response
{ "livemode": true, "credit_limit_amount": 200000, "credit_limit_currency": "usd", "status": "active", "credit_period_interval": "month", "credit_period_interval_count": 1, "days_until_due": 1, "last_effective_attributes": { "effective_until": 11223344, // time of update to credit period "credit_limit_amount": 100000, "credit_period_interval": "month", "credit_period_interval_count": 1, "days_until_due": 1, "status": "active", }, "upcoming_attributes": { "effective_at": 12345678, // 1st day of the next month, 00:00 UTC "credit_period_interval": "day", "credit_period_interval_count": 15, "days_until_due": 0, "status": "active", } }
At the effective_ timestamp, the CreditPolicy will be automatically updated to what was in the upcoming_ hash:
{ "livemode": true, "credit_limit_amount": 200000, "credit_limit_currency": "usd", "status": "active", "credit_period_interval": "day", "credit_period_interval_count": 15, "days_until_due": 0, "last_effective_attributes": { "effective_until": 12345678, // 1st day of the next month, 00:00 UTC "credit_limit_amount": 200000, "status": "active", "credit_period_interval": "month", "credit_period_interval_count": 1, "days_until_due": 1, }, "upcoming_attributes": nil }
This triggers an issuing_ event. At the effective_ timestamp when the credit period changes take effect, the FundingObligation for the current period is finalized and a new FundingObligation is created to mark the start of a new credit period on the new credit terms.
Deactivate the CreditPolicy
Temporarily stop using your platform Issuing account to support a connected account’s spend by deactivating its CreditPolicy. To do so, the connected account must have a balance of 0 or above. If you deactivate the CreditPolicy and the connected account doesn’t have sufficient funds, Stripe declines authorizations on the connected account’s cards. You can reactivate the CreditPolicy at any time.
Example response
{ "livemode": true, "credit_limit_amount": 200000, "credit_limit_currency": "usd", "status": "inactive", "credit_period_interval": "day", "credit_period_interval_count": 15, "days_until_due": 0, "last_effective_attributes": { "effective_until": time_of_deactivation, "credit_limit_amount": 200000, "status": "active", "credit_period_interval": "month", "credit_period_interval_count": 1, "days_until_due": 1, }, "upcoming_attributes": nil }
This status change triggers an issuing_ event. When you deactivate a CreditPolicy, you’ll continue to receive FundingObligation updates for the next 31 days to account for any cleared Transactions, because authorizations that happened before deactivation can be captured up to 31 days later.
Revoke the funding_credit capability
If you decide to stop using your platform Issuing account to support a connected account’s spend altogether, revoke their funding_ capability. The connected account must have a 0 or positive balance at this stage.
You must deactivate the account’s CreditPolicy before you revoke the funding_ capability. You can request the funding_ capability again in the future for the same connected account. If you request the capability for the same connected account again, they don’t need to re-accept the terms.
If the connected account maintains an active card_ capability, you can still issue cards for the connected account. However, you must add funds into the connected account’s Issuing balance for their cards to work.
Summary of webhooks
As a reminder, you can monitor these two webhooks:
issuing_: Triggers whenever acredit_ policy. created CreditPolicyis created, which happens when the capability is requested for the connected account.issuing_: Triggers whenever acredit_ policy. updated CreditPolicyis updated, which can happen when the platform updates the connected account’s policy.