Loan servicing
How money moves
| Step | Who pays whom | Rail | When |
|---|---|---|---|
| Fund disbursements | Lender's bank account to the lender's Moov wallet | ACH debit | Before disbursing |
| Disburse the loan | Lender's wallet to borrower | Instant payments (RTP or FedNow), push to card, or same-day ACH | At loan approval |
| First repayment | Borrower to lender | Debit card (first-recurring) or ACH debit |
First due date |
| Ongoing repayments | Borrower to lender | Debit card (recurring) or ACH debit, on a schedule |
Each due date |
| Extra payments | Borrower to lender | Card or ACH, outside the schedule | Any time |
| Move funds out | Lender's wallet to the lender's bank account | Sweeps or ACH credit | Daily or on demand |
Moov products you'll use
- Hosted onboarding: collect borrower details and terms of service acceptance.
- Link bank accounts and cards: set up where borrowers receive funds and repay from.
- Instant payouts and push to card: send loan proceeds in seconds.
- Debt repayment: qualify card repayments for lower interchange.
- Recurring card payments and scheduled transfers: collect repayments without borrower action.
- Card account updater: keep cards on file current when they expire or are replaced.
Loan servicing considerations
Debt repayment interchange incentives. Visa, Mastercard, and Discover run incentive programs that lower interchange on qualified loan repayments. To qualify, the lender must have MCC 6012 or 6051, and Moov works with you to register the business account with each network. Registration can take up to 45 days. After registration, debit and prepaid card payments are flagged as debt repayment automatically. You can check a card's cardType when you link it, and see the program a transfer qualified for in its feeProgram. Debt collection agencies (MCC 7322) aren't eligible. See debt repayment.
Recurring repayments. Start each card repayment series with a first-recurring payment; recurring and unscheduled payments fail without one. Borrowers can still make unscheduled payments outside the schedule. Card account updater refreshes expired or reissued cards so you don't have to chase borrowers for new details. See recurring card payments.
Shorter application forms. Use the form shortening API to autofill borrower details from an email address, autocomplete addresses, and look up banks by routing number. Moov.js composable Drops provide prebuilt UI for the same flow.
Build it
Work through these guides in order to build this integration end to end: