Overdraft Protection

Onboarding

Enabling Overdraft Protection

1. Create Deposit Node

2. Display Overdraft Protection terms

   1. preview_only: True

3. Display the Promise to Repay Disclosure

   1. Required Language: “The bank services are provided by Synapse. By accepting the terms of this account on <Insert Platform Name>, you agree to <Platform>'s Promise to Pay Agreement.”

   2. Display the agreement PDF

4. Collect Affirmative Consent from the user opting into overdraft protection

5. Create REPAY-US node

Notes

• Determine the maximum overdraft limit for each user

• Cash Advance products are heavily scrutinized by regulators

• Platforms cannot charge APR for Cash Advance Products

Transactions

Covering Inbound Transactions

1. Synapse receives a transaction

2. Synapse sends a JIT request to the provided webhook endpoint

3. Get user balance

4. Run transaction decisioning

5. Respond to request within 1 second

   1. Set the REPAY-US node as the funding node

   2. Fund the difference between the current balance and the transaction amount

Notes:

• Platforms will need to create a TRANS|POST|JIT subscription

Repayments

1. Receive TRANS|POST Notification of incoming credit transaction into the deposit node

   1. Receive TRANS|POST webhook

2. Wait for credit transaction to settle

   1. Receive TRANS|PATCH webhook

3. Get current Deposit node balance

4. Get current Repay-US node balance

5. Create transaction from deposit node to REPAY-US node for the minimum of the following:

   1. Current deposit node balance

   2. Current REPAY-US node balance

Account Details

Disabling Overdraft Protection

1. Users go to account settings

2. Users select “disable overdraft protection.”

3. New transactions that exceed current deposit node balance will be rejected

Notes:

• Users must be able to disable overdraft protection

• If a user currently has a negative balance due to overdraft protection, they can repay the overdraft but new transactions will not increase the balance