Funding

Overview

Interact Funding is designed for businesses that prefer real-time, just-in-time funding instead of maintaining preloaded card balances. Unlike Interact Gateway, where the client controls authorization decisions, Interact Funding shifts authorization and funding responsibilities to Qolo, based on predefined client rules.

This component allows funds to be allocated dynamically at time of transaction approval, reducing the need for pre-funded card accounts. By using program funding accounts, Qolo ensures that only the necessary amount is moved to cover the transaction, optimizing fund utilization and improving cash flow management.

This option is well-suited for prepaid and debit card programs, as well as businesses that want to simplify funding operations while still maintaining oversight of transaction authorization rules.

When to Choose Funding

If program:

Does not want to maintain preloaded funds on card accounts.
Prefer Qolo to handle transaction authorization based on predefined rules.
Requires just-in-time funding to optimize cash flow and reduce idle balances.
Needs a simplified funding process, without the operational complexity of managing balances manually.

How It Works

The Funding process ensures that transactions are only funded when required, following these steps:

1. Transaction Request Initiation

A merchant sends an authorization request to the card network.
The card network forwards the request to Qolo.

2. Qolo Pre-Authorization Checks

Qolo evaluates the request based on predefined funding rules, including:
- Available balance in the program funding account
- Risk and compliance parameters set by the client
- Merchant category code (MCC) restrictions

3. Funding & Authorization Decision

If the transaction passes validation, Qolo moves the necessary funds from the client’s program funding account to the cardholder’s account.
Qolo authorizes the transaction and sends an approval response to the card network.

4. Transaction Settlement & Fund Reconciliation

The transaction is settled through the standard clearing process.
After settlement, any remaining balance on the card is returned to the program funding account.

Response Capabilities

While Qolo is responsible for transaction funding and authorization, clients can still define key response parameters to influence how transactions are processed.

Response Capability	Description
Approval or Decline Decision	Determines whether the transaction is fully approved, partially approved, or declined.
Partial Authorization Amount	Allows clients to approve a lower amount than requested (if supported by the merchant).
Merchant Category Code (MCC) Restrictions	Transactions can be filtered or restricted based on merchant types, preventing unauthorized spending.
Program Funding Account Selection	Clients with multiple program funding accounts can specify which account should be used for the transaction.