Full balance versus Zero balance integration

The following table summarizes the differences between Full balance and Zero balance integration.

With Full balance integration, Pismo handles most of the process. With Zero balance integration, you are responsible for managing your customers’ balances and credit limits. For both, Pismo provides card management and authorization integration with Visa, Mastercard, and other card networks.

Card creation and management

Card creation and management includes the following:

• Card lifecycle (create, update, cancel)
• Card embossing integration
• Virtual cards
• Tokenization (Apple Pay/Google Pay, Garmin Pay)
• PIN updates
• Network integration
• Base I authorization processing

See Card issuing with Pismo for more information.

Card validations

During transaction processing, there are two types of card validations that take place:

• Stateless validations (PIN, CVV, entry mode, and so on).
• Stateful validations (account/card status, limits, ATC, and so on).

To see the validations done for Full balance versus Zero balance, see List of validation rules.

Customized card validations

An issuer can customize some validations, including:

• Allow local currency to be used in international purchases
• Allow transaction using card magnetic stripe
• Check terminal capabilities (entry mode vs. terminal capability)
• Must verify cryptogram for contactless or chip transactions
• Allow no-CVV and PIN validation for the card not present transactions
• Disable Card Verification Method (CVM)
• Validate chip signature
• PIN max error attempts
• Application Transaction Counter (ATC) range validation

See your Pismo representative to implement customized card validations.

Clearing Base II authorization

Card networks send two types of authorization messages, created by two types of messaging systems: a single-message system (SMS) and a dual-message system (DMS). The clearing/base II reconciliation process handles these messages.

With Zero balance integration, you are responsible for handling Clearing Base II authorization.

Anti-fraud check

With Full balance integration, the Pismo platform provides anti-fraud integration via a partner.

With Zero balance integration, you are responsible for your own anti-fraud checks as well as account and balance checks. See Zero balance anti-fraud and validations integration.

Statement management

Credit card balances and interest accruals are managed in cycles (billing periods). A statement corresponds to a single cycle. The first cycle begins the moment the card is activated. After that, the first full day of each cycle follows the closing date of the previous cycle. On the last day of a cycle, the cycle is closed, and a grace period begins. This grace period belongs to the next cycle. When the grace period ends, if the card balance has not been paid off, charges begin to accrue. For more information, see Understanding statements.

With Zero balance integration, you are responsible for managing the statement lifecycle.

General ledger management

The Pismo platform uses accounts to keep track of money flowing into and out of a company's general ledger.

With Zero balance integration, you are responsible for maintaining a general ledger.

Accounting management

With Full balance integration, you have access to the accounting API, with Zero balance, you do not.

With Zero balance integration, you are responsible for handling accounting events via an accounting script.

Adjustment handling

It's sometimes necessary to add or remove money from a customer's account to reconcile balance inconsistencies (to credit an account when a transaction fails to be delivered or to return money to the customer). For more information, see the Adjustments overview.

With Zero balance integration, you are responsible for making adjustments. You can do this using the Create adjustment endpoint.

Transaction management

A transaction is a record of a purchase, transfer, payment, or manual adjustment. In most cases, a cleared authorization triggers creating a transaction. For more information, see the Transactions overview.

Transaction management includes the following:

• Create transactions
• Set up transaction types and processing codes
• Payments API access

With Zero balance integration, you are responsible for creating a transaction after clearing an authorization. However, you cannot set up transaction types and processing codes.

Flex transaction controls

The Pismo platform provides flexible transaction controls that enable you to restrict a customer's financial operations. For example, you can set a maximum amount allowed for a certain transaction type.

With Full balance integration, you use the Pismo API to restrict customers' financial operations. With Zero balance integration, you are responsible for implementing such restrictions.

Refinancing options

You must have processes in place that allow cardholders to refinance their credit card debt. To that end, your program must make the following options available:

• Installment advances – Used to settle future debt on the current cycle, rather than on a future cycle.
• Installment agreement – Used to refinance an existing credit card debt.
• Statement agreement – A contract that renegotiates all debt – past, present, and future.

With Zero balance integration, you are responsible for providing refinancing options to your customers.

For more information, see Credit card refinancing overview