Card-based programs using Canopy will need a mechanism for issuing cards to borrowers. Whenever those cards are used by borrowers, the issuer-processor needs to be able to authorize the transactions, and Canopy needs to know about the transactions in its ledger.
This entire process can be set up with no-code and just a few configurations using one of our issuer-processor integrations. This is our recommended approach.
Alternatively, the steps to build your own custom issuer-processor integration with Canopy are not overly complex; this is a better option for partners who may use unsupported issuer-processors or need some other level of control over the issuance-processing pipeline.
Canopy currently supports a no-code setup when using Lithic or Stripe as your Issuer Processors. To use one of these processors, simply configuring your Canopy API keys through our Issuer Processor endpoint.
- Whenever a borrower is onboarded, in the same API call simply pass some additional data about the card you want to issue them. Parameters to pass vary slightly depending on which integration you are using, but are all very standard.
- Optionally, you may issue additional cards for an existing customer
- Optionally, you may update customer cards -- for instance, if they lose their card, and you need to invalidate it.
- Whenever a borrower uses their card, Canopy automatically knows about it and handles the charge.
- Canopy handles authorization, declining unauthorized transactions.
- Canopy processes transactions as they are settled.
Check out our 2 min overview of using Canopy with Stripe Issuing:
Alternatively, you may replicate the flow of our issuer-processor integrations for your own system.
- You can issue cards outside of Canopy completely.
- Whenever a borrower makes a transaction, your system can either maintain a shadow ledger for authorizations or check the borrower's available credit in Canopy before responding to authorization requests.
- You should let Canopy know of Authorizations via our
Create Chargeendpoint, and later update the status of those charges via our
Update Line Itemendpoint once the transactions settle.