The Pismo platform allows you to define over-limit fees and apply them to your operations on the organization, program, or account level. The platform charges the over-limit fee on the account when the account limit goes over the allowed threshold. This feature is currently supported for credit accounts only.

During credit operations, the platform confirms and validates the purchases. If a purchase goes over the credit limit, the platform generates a negative account record and marks the account for the over-limit fee. On the statement closing day, the platform checks if the account uses the over-limit fee and if the account limit exceeds the maximum credit limit. If both are true, the platform charges the one-time over-limit fee.

To enable an over-limit fee on a credit product, perform the following steps.

1. Update account limits to define the percentage_over_limit parameter on the account level.
2. Contact the Pismo representative to configure the following settings.
   1. Set the program-level parameter Overlimit fee amount.
   2. Optionally, identify and mark the accounts for the over-limit fee usage.

When the account goes into over-limit, the platform sends the Over-limit created event. This event applies both to platform and card network operations.

Example

In this example, suppose the account with a credit limit of $100 is marked to use the over-limit fee if its balance goes above this limit by 10%. The over-limit fee is $20, as defined in the Overlimit fee amount program parameter.

During cycle 1, the account holder makes a purchase for $110, which is 10% over the credit limit and triggers the over-limit fee of $20. At the end of cycle 1, the statement balance amount is $130, which includes the purchase amount $110 and the over-limit fee $20. If the account holder doesn’t pay this amount, the balance of $130 carries over to cycle 2.

At the end of cycle 2, the statement balance amount is $136.5, which includes the carried over balance $130, the fine $1.00, and interest $5.50. The platform continues to apply fines and interest charges until the account holder pays the full owed amount.

Over-limit configuration

You can enable over-limit functionality with the Balance watcher API. This API listens for platform and card network events and triggers actions based on these events. To determine if the account should go into over-limit, the balance watcher listens for the following authorization events.

• Authorization created: authorizations from different payments domains
• Platform authorization created: platform authorizations from payment methods
• Network authorization received: card network authorizations

You can enable over-limit settings at the organization (org), program, and account levels with two main configuration types: configurations and acceptances.

• Limit configurations are more general. If set at the global level of the org, the platform uses these configurations as the default.
• Limit acceptances are more specific. They are always associated with a processing code (PC) for a financial operation and are applied on a more granular level. Acceptances take precedence over configurations.

The Pismo platform evaluates configurations in the order from the most specific to more general: acceptance → account → program → org. This means that the more specific levels take precedence over the more general ones.

📘

Account-level configurations and acceptances are disabled by default. Contact your Pismo representative to enable them for your organization.

With acceptances, you can choose to enable the over-limit setting for each type of authorization for the financial operation (specified by its PC). For example, you can use the following payload to enable over-limit for card network authorizations and disable it for all other authorizations.

{  
	"network_authorization": {  
		"overlimit": {  
			"enabled": true  
		}  
	},  
	"platform_authorization": {  
		"overlimit": {  
			"enabled": false  
		}  
	},  
	"authorization": {  
		"overlimit": {  
			"enabled": false  
		}  
	}  
}