Repayments

Repayments are payments made towards a Credit Account to reduce outstanding balance (debt) and increase available credit limit. Repayments can represent actual money movement within the Unit platform, or simple ledger updates for funds collected externally.

Repayment Types

Unit supports two primary types of repayments, determined by where the money movement occurs:

Repayment Type	Money Movement	Unit Action
Native	Occurs on the Unit platform (same or different bank partners).	Executes money movement (Book or ACH Payment) and updates the credit ledger.
External	Occurs outside of the Unit platform.	Only records the repayment amount on the credit ledger. No real money movement is initiated by Unit.

Usage

Native repayments are applicable for:

• Bank Sponsored Business Charge Cards
• Client Sponsored Business Charge Cards
• Receivables Retention Charge Cards and Credit Cards

In majority of cases, this type of repayments are used.

External repayments can be used only for:

• Receivables Retention Charge Cards and Credit Cards

Used in specific configurations of the loan product. Please contact Unit's support team in case of doubts.

Native Repayments

Native repayments are used when the funds are sourced from a deposit account that is accessible or present on the Unit platform. These repayments initiate an actual payment transaction.

Client Capital Used

This flow is used when you are providing the capital for the underlying lending program.

An end-customer can make a repayment using:

• Book Repayment: Repayments from a deposit account held at the same bank partner on the Unit platform are made using a Book Repayment (an internal transfer).
• ACH Repayment: Repayments from deposit accounts held at other banks that are integrated with Unit are made using an ACH Repayment.

Once you successfully create a repayment, a repayment.created event will be raised. If the repayment is successfully created, an underlying payment will be created, and a subsequent payment.created event will be raised.

Required Accounts for Repayment Creation

When creating such repayment, you are required to specify three accounts:

Parameter	Role	Description
account	Receiving Account	The Deposit Account that the repayment funds will be deposited in. This is typically your client's settlement or operating account.
creditAccount	Debt Account	The Credit Account that the repayment is made against (e.g., the credit account that represents the customer's charge card debt).
counterparty	Source Account	The Deposit Account that the repayment funds will be taken from (the end-customer's account).

Unit Capital Used (Capital Partner Repayments)

When using Unit Capital as part of your lending program, end-customer repayments should be directed to the specific Capital Partner's account.

These repayments can be made using Capital Partner ACH Repayment or Capital Partner Book Repayment. You do not need to provide the details of the receiving account when creating these repayments, as the Capital Partner's account will be pre-configured during program setup.

External Repayments

External repayments are used when you collect a repayment from the end-customer and facilitate money movement outside of the Unit platform.

The primary purpose of an external repayment is to inform Unit:

1. To update the credit ledger.
2. To reduce the balance on the customer's credit account.
3. To increase the customer's available credit limit.

Since the actual money movement occurs off-platform, Unit only updates the credit ledger. Once the external repayment is created, a repayment.created event will be raised.

Repayment Returns

There are situations when a repayment can be returned (e.g., due to insufficient funds, fraud detection, or bank error).

When a return occurs, it impacts the credit account balance, and Unit performs necessary adjustments to the credit account and ledger records (e.g., increases the balance and decreases the available credit).

Repayment Type	Return Processing	Required Client Action
Native Repayments	Automatic. Unit detects the return (via ACH network, etc.) and processes all credit account adjustments automatically.	None is required from the client.
External Repayments	Manual. Since Unit was not involved in the original money movement, the return is not automatically detected.	Client needs to inform Unit using the Return External Repayment API to update the credit ledger and reverse the original external repayment entry.

Repayment Statuses

Repayments share the status of the underlying payments (e.g., Book or ACH Debit). When the Repayment status changes, a repayment.statusChanged event will be raised.

Book Repayment Statuses

Status	Description
Sent	The repayment has been completed and the funds have been debited from the counterparty, deposited into the account, and the creditAccount balance has been updated .
Rejected	The repayment has been rejected, either because the amount exceeds the balance of the creditAccount, or because the book payment has been rejected.

ACH Repayment Statuses

Status	Description	Possible Next states
Pending	The repayment and associated payment have been created, but have not yet been transmitted to the ACH network.	The status will change to clearing once the payment is transmitted to the ACH network, or to canceled (if the payment is canceled).
PendingReview	The ACH debit payment has been sent to manual review in cases of elevated fraud risk	rejected (if rejected by the reviewer) pending (if approved by the reviewer) or canceled (if the payment is canceled).
Clearing	The funds have been debited from the counterparty and are now in clearing to mitigate the risk of ACH debit fraud	sent (once the clearing period is over) or returned if the payment was returned before the clearing period ends.
Sent	The funds have been cleared and released to the account. The creditAccount balance has been updated	This is a final state, unless the payment is returned.
Returned	The bank that the funds were pulled from has returned the ACH payment. The funds have been returned from the account to the counterparty and the creditAccount balance has been updated.
Rejected	The repayment has been rejected, either because the amount exceeds the balance of the creditAccount, or because the ACH has been rejected
Canceled	The ACH payment has been canceled

External Repayment Statuses

Status	Description
Sent	The external repayment has been applied to the credit account. The creditAccount balance has been decreased and available credit limit increased.
Returned	The external repayment has been returned. The creditAccount balance has been increased and available credit limit decreased.