1 - Introduction

Public API Documentation for Fitbank's Closed Loop Product

This document provides comprehensive details about the public API for the Closed Loop payment system by Fitbank. The APIs described here facilitate various transactions within the closed loop system, including purchases, withdrawals, deposits, and merchant registration.

Closed Loop Payment Arrangement Description

A closed loop payment arrangement is a payment system that allows transactions exclusively within a specific network, usually limited to a selected group of commercial establishments. In this type of arrangement, users have the possibility to top up their accounts and use that balance as a payment method within the arrangement's network. Additionally, the closed loop payment arrangement can offer exclusive benefits to participants, such as special discounts and loyalty programs.

In the closed loop payment arrangement offered by FitBank, all transactions are fully processed within the closed network, without the need for third-party intervention, such as credit card networks or acquirers. FitBank assumes responsibility for all stages of the payment flow, from transaction authorization to reconciliation and statement issuance. This way, FitBank becomes the sole entity involved, ensuring the security and efficiency of financial operations within the closed loop payment arrangement.

Transaction Processing

• Transaction 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 issuing company to the acquiring company of the establishment. All financial flows occur within FitBank, following the agreed contractual terms.

Commercial Conditions

• Settlement Period: The settlement period is the time between the completion of a payment transaction and the moment when the commercial establishment has the amount effectively available in its bank account.
• MDR Fee: The arrangement also charges processing fees and other charges, as negotiated in the contract, such as the interchange fee charged to the establishment for processing the transaction.
• MDR Repayment: It is the percentage over the MDR fee that will be transferred to the Supplier BU for allowing its users to purchase through the arrangement.
• Withdrawal Fee: The arrangement also charges a withdrawal transaction fee, as negotiated in the contract, which will be a fixed amount added to the total value to be charged to the end user.
• Withdrawal Repayment: It is the percentage over the withdrawal fee that will be transferred to FitBank as revenue, as defined in the contract.

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.