About accounts

The Dock platform enables an entity Account aiming to store a person’s financial details, such as balances and limits. Each of them may have only one individual as a cardholder, but it may grant one or more extra cards to one or more dependents.


Balance

A balance is the amount resulting from the difference between the amounts credited and debited from an account.

As an example of the balance behavior of an account in the Dock platform, we can compare its behavior in the credit card and debit card:

Let’s imagine a new credit card that has never been used. It features a credit limit of $5,000.00 and a balance of $0.00. When making a purchase (which is a debit case) of $1,000.00, the credit limit available to you will be $4,000.00, and your balance will be $1,000.00. When making a payment (which is a credit case) of $300.00, the credit limit available to you will be $4,300.00, and your balance will be $700.00.

Now let’s imagine a new prepaid card that has never been used. This type of card doesn’t feature a credit limit, only a balance. Therefore, your initial balance is $0.00. In order to for it to be used when making purchases, you need to load it first. When loading the card (which is a credit case) of $100.00, your balance will be -$100.00. When making a purchase (which is a debit case) of $20.00, your balance will be -$80.00, that is, $80.00 is still available to be spent on this card.

In sum: a credit case, such as a paying a bill or loading the prepaid card, is reduced, removed or deducted from a balance. A debit case, such as purchases or withdrawals, increases or adds a balance.


Credit limits

Credit cards needs a limit. The issuer is the one responsible for setting this amount, taking into consideration some factors such as the cardholder’s income and payment history. After the amount is set, the customer can spend it until the closing of the bill or distribute in installments, thus avoiding the need for the money in cash to pay for an amount immediately or the need to have the total amount at that moment to make the purchase—as long as the amount in the purchase is also lower than the credit limit that is available.

When making a purchase in installments, its total amount will impact the total credit limit, which is reduced as the installments are paid.

For instance: If the total limit for a credit card is $1,000.00, and a purchase of $200 was paid in two installments of $100.00, then the available limit after the purchase will be $800.00. From the moment the first installment is paid, a total of $100.00, the total limit that is available will be $900.00, and so on so forth until all installments are paid.

Therefore, the limit is reduced as the card is used, and it’s only reset as the monthly bill is paid. The limit that is available should be informed on a monthly basis on the credit card bill.


Account status

The Dock platform enables you to sort status for accounts, such as:

• Normal;
• Blocked;
• Cancelled;
• Non-payment;
• Cancelled-Client;
• Cancelled-Manual;
• Creliq;
• Financial-Loss;
• Holder-Death;
• Creliq-Agreement;
• Loss-Agreement;
• Lawsuit;
• Cancelled-Fraud.


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