1 - Introduction

Description

The Closed Loop product from Fitbank is a closed payment arrangement that allows companies to create and operate their own financial ecosystems. In this type of arrangement, transactions are limited to a specific network, typically among a selected group of commercial establishments. Users can top up their accounts and use the balance as a payment method within the network, enjoying exclusive benefits such as special discounts and loyalty programs.

With Closed Loop, companies can transform their commercial establishments into Payment Agencies and their digital account applications into Digital Banks, offering services like purchase payments, withdrawals, and deposits. Unlike open networks, all transactions are fully processed within the closed network, without the need for third-party intervention such as credit card networks or acquirers.

FitBank takes responsibility for all stages of the payment flow—from transaction authorization to reconciliation and statement issuance—ensuring security and efficiency throughout the financial operations within the closed loop payment system.

The Closed Loop product is designed for two main types of clients:

1. Receiver: Companies or institutions that wish to create and manage their own financial ecosystems. They offer financial services to the companies associated with the arrangement.
2. Supplier: Issuing banks, digital banks, and fintechs seeking to offer integrated financial services to their users with bank accounts through a modern and efficient platform.

Transaction Processing

• Generation: When a customer makes a transaction using one of the arrangement's payment methods, the payment terminal sends the transaction details to the API, including the cardholder's identification number, purchase amount, and establishment identification.
• Authorization: The Transaction Authorization API verifies the account's validity and the availability of funds to approve or deny the transaction. This is done in real-time through communication with FitBank's APIs, using a two-step process: validation of the cardholder's account and transaction confirmation by the cardholder with their PIN.
• Settlement: After authorization, the arrangement processes the transaction settlement, transferring the funds from the receiver company to the supplier company of the establishment. All financial flows occur within FitBank, following the agreed contractual terms.

Commercial Conditions

• Settlement Period: The settlement period refers to the time allocated for the consolidation and transfer of transaction receivables from a company's stores. It is the commercially agreed period for the amount to be made available in the merchant's bank account.
• Transactional Fees: The arrangement also charges processing fees and other costs, as negotiated in the company's contract. The Receiver participant can negotiate which services will be provided to the company, such as APIs for Purchase, Withdrawal (Cash Out), and Deposit (Cash In) transactions. The transactional fees for Withdrawal (Cash Out) and Purchase will be charged to the merchant for processing the transaction, while the fee for Deposit (Cash In) will be charged to the Supplier participant.

This documentation provides the necessary details to understand and use the Closed Loop payment system APIs effectively, ensuring smooth integration and operation within the Fitbank ecosystem.