Payments made by borrowers have two important responsibilities – they need to be tracked in Canopy, and they generally need to be processed by a payment processor to handle actual movement of funds. Using Canopy's payment processor integrations, the second responsibility can be handled with no additional code.
Using our payment processor integrations, we securely store your borrower's payment methods, and we notify your configured payment processor to move funds from the borrower to your account every time you let Canopy know that a payment has occurred. This reduces the entire payment management process on your end to one simple API call to Canopy.
Additionally, our payment processor integrations handle payments reconciliation out of the box; abstracting all of the complexity of managing various payment settlement states across multiple payment methods away from your development team.
Finally, our payment processor integrations support autopay out-of-the-box, which can be toggled per the borrower's preference.
Currently, our integrations support ACH and Debit payments.
Each payment processor we work with has its own unique setup process – some require an offline approval process with your team while others are self-serve. Either way, once you have an account, you can make a single API call to Canopy to configure your account details (a merchant ID, an account number, etc – this varies based on the processor).
At this point, you are fully set up and ready to receive automatic payments from any of your borrowers who are set up to use the integration (see below).
- Whenever a borrower is onboarded, in the same API call simply pass some additional data about their payment details -- you can always add these later after they're onboarded as well.
- This lets Canopy know some basic information -- are their payments via ACH or debit? Are they using autopay? What account are the funds being sent from?
At this point, after a single API call, the borrower is fully set up with a payment processor integration.
- If they have autopay enabled, payments will automatically be sent to you whenever they are due from the borrower (or piped into a reconciliation flow if the borrower has insufficient funds).
- If they don't have autopay enabled, or make additional payments beyond the autopay, whenever you let Canopy know that they're making a payment, we automatically trigger the corresponding transfer through the payment processor, moving the funds from the borrower to your account.
Check out our 2 min overview of how to set up your payment processor integration:
Alternatively, you may replicate the flow of our payment processor integrations for your own system.
- Instead of Canopy automaticaly notifying the payment processor, you'll need to notify Canopy that the payment occurred, and separately notify the payment processor to handle movement of funds.
- You will need to manage all borrowers' payment details and payment preferences.
- You will need to set up an autopay scheduler to call Canopy as needed, if you want to enable autopay.
- You will need to create a payment reconciliation flow that handles payments that shift into error states.
This may make sense for you if you want detailed and granular control into the payments flow, if you have built your own payment processor if you have a strong preference towards a payment processor with whom Canopy is not yet integrated.