# Debt repayment

Process debt repayment transactions in compliance with card brands and take advantage of interchange incentive programs with lower fees.

Partner with Moov to register eligible merchants in the participating card network incentive programs. After registration, eligible merchants can receive lower interchange fees for qualified loan repayment transactions.

If you have a debt repayment use case, [contact us](https://moov.io/contact/) for more information.

## [Merchant eligibility & registration](#merchant-eligibility--registration)

To be eligible for debt repayment programs, merchants must fall into one of two MCC codes, `6012` or `6051`. MCC code `6012` is a financial institution such as a bank or credit union. MCC code `6051` is a non-financial institution that deals with currency, such as currency exchanges or money ordering.

Debt collection agencies (MCC code `7322`) are not eligible for debt repayment interchange incentive programs.

To have card payments qualify for debt repayment interchange incentives, business accounts must be configured with Moov and registered with Visa, Mastercard, and Discover. Moov works with you and the merchants to handle this registration, but requires specific information before the process begins. Once registration is complete, Moov will update the business account's debt repayment settings.

## [Debt repayment transfers](#debt-repayment-transfers)

Once an account is configured for debt repayment, payments made with a debit or prepaid card will automatically be marked as debt repayment in the request to the card network.

If a credit card is provided, you'll receive the following `400` error:

```json
{
  "error": "unsupported card type for debt repayment"
}
```

## [Card eligibility](#card-eligibility)

When a merchant account is configured for debt repayment, only consumer debit and consumer prepaid cards can be accepted. To check card eligibility, view `cardType` in the response object after [linking a card](/api/sources/cards/create/). Eligible cards will have a `debit` or `prepaid` card type.

```json
{
  "cardType": "debit"
}
```

## [Check qualification](#check-qualification)

If a merchant has been registered for the network's debt repayment program, then `feeProgram` will reflect which program a transaction qualified for.

For merchants ineligible for the card network programs, or with a pending registration, `feeProgram` will reflect a standard interchange program. These transactions will not qualify for the debt repayment interchange program.

Use the retrieve a transfer `GET` [endpoint](/api/money-movement/transfers/get/) and check `source.cardDetails.feeProgram` in the response object to see which debt repayment program a transaction qualified for.

```json
{
  "source": {
    "cardDetails": {
      "feeProgram": "Debt Repayment 2"
    }
  }
}
```

## [Interchange fee details](#interchange-fee-details)

The main benefit of the network incentive programs is capped interchange fees. This allows you to control processing costs regardless of the size of the loan repayment transaction.

You can find a payment's calculated interchange fee by checking `moovFeeDetails.interchange` in the create a transfer [response](/api/money-movement/transfers/create/).

## [Rates](#rates)

For the most up to date program rates, it's always best to check with the card networks directly.

### [Visa interchange program fees](#visa-interchange-program-fees)

| Program name                  | Exempt Visa check card card not present transactions | Regulated Visa card not present transactions |
|-------------------------------|------------------------------------------------------|----------------------------------------------|
| CPS / Debt Repayment 2        | 0.65% +$0.15 ($2.00 max)                             | 0.05% +$0.21*                                |
| CPS / Debt Repayment - No fee | 0.65% +$0.15 ($0.65 max)                             | 0.05% +$0.21*                                |

| Program name                  | Exempt Visa consumer prepaid, other exempt | Regulated Visa consumer prepaid |
|-------------------------------|--------------------------------------------|---------------------------------|
| CPS / Debt Repayment 2        | 0.65% +$0.15 ($2.00 cap)                   | 0.05% +$0.21*                   |
| CPS / Debt Repayment - No fee | 0.65% +$0.15 ($0.65 cap)                   | 0.05% +$0.21*                   |

*\*Issuers that certify to Visa their compliance with the interim fraud prevention standards will receive an additional US $0.01.*

### [Mastercard program fees](#mastercard-program-fees)

| Program name                | Mastercard Consumer Signature unregulated debit and prepaid cards |
|-----------------------------|-------------------------------------------------------------------|
| Merit 1 (Consumer Loan MCC) | 0.80% + $0.25 ($2.95 cap)                                         |

### [Discover program fees](#discover-program-fees)

| Card type          | Discover debit and prepaid |
|--------------------|----------------------------|
| Debit              | 0.70% + $0.16              |
| Debit Maximum      | 0.00% + $2.40              |
| Debit Non Exempt   | 0.50% + $0.21              |
| Prepaid            | 0.70% + $0.16              |
| Prepaid Maximum    | 0.00% + $2.40              |
| Prepaid Non Exempt | 0.50% + $0.21              |