Frequently Asked Questions

General | Eligibility and Fees | Payment Application | Statements and Messaging

 

General

What is FlexLine Advance?
FlexLine Advance is a convenient, cost-effective way for consumers and small business owners to borrow funds against the unused credit line. It does not require a new loan or credit application because it is a new feature added to an existing account, so there is no need for underwriting. Funds will be deposited into a checking or savings account to provide payment flexibility in situations where a credit card can’t be used.

When will it be available to implement?
We are ready to start implementations immediately.

How do I request it?
Work with your client executive to add the feature.

What’s the turnaround time to implement the project?
We anticipate the implementation will take approximately eight business days to complete. Although the volume of requests will influence our schedule, we are focused on rapid delivery.

How is FlexLine Advance different from a cash advance?
A cash advance generally comes with an upfront fee and a higher interest rate compared to a regular purchase. FlexLine Advance is deposited electronically in the cardholder’s bank account within two days through ACH. In addition, the amount available to the consumer is from their purchase credit instead of the (often lower) amount available for cash advances.

How does it work? What does the consumer have to do?
The steps will be simple. Your institution will be able to establish interest rate and repayment term parameters for the consumer or small business owner to select. The cardholder will initiate the process through Online Account Manager (OAM) by choosing the program they want; specify where to direct the money; and verify their selection. Once complete, they will receive a confirmation. The Fiserv Contact Center will then take the necessary steps to fulfill the transaction.

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Eligibility and Fees

How is a FlexLine Advance different from a personal installment loan?
Since FlexLine Advance uses the unused credit line of the credit card account, it requires no application, no additional bureau pulls or adjudication. It is a faster and easier way to get the funds. Personal installment loans need a new application, application processing, adjudication and approvals and therefore take more time and effort. It is not an installment loan but is payable within a fixed term and subject to a fixed interest rate.

How do cardholders know if they are eligible for a FlexLine Advance?
Upon logging in to Online Account Management (OAM), eligible consumers and small business owners will see an announcement with a link to “know more.” Eligibility is determined by client participation in the program, available credit, and account status of active, inactive or dormant. The offer is based on ORG/LOGO. Charged off, closed and bankruptcy accounts are not eligible.

How does a cardholder request a FlexLine Advance?
If eligible, the cardholder would request the advance amount, select the interest rate and payment period, and provide the R/T and account number. If the funds are available, it will be processed, and the money will be deposited in the checking or savings account within two business days.

Is there a cardholder fee for getting a FlexLine Advance?
There is no transaction fee to the cardholder. The fixed interest rate applies over the specified payment period.

Is there a minimum amount a cardholder can borrow with a FlexLine Advance?
The minimum is $50.

Do cardholders earn credit card rewards on a FlexLine Advance?
No.

Would OAM be the only tool for the member to enroll in a FlexLine Advance? If the financial institution wants to assist the cardmember with the request, can the financial institution or contact center initiate for the member directly via Credit Console?
OAM will be the only tool/channel that a cardholder/member can use to request the advance. The institution and contact center do not have the ability to intervene in the process.

Can an institution selectively qualify the cardholders for FlexLine Advance, or is this an across the board offering?
The offer is based on ORG/LOGO. It will be available to all active, dormant and inactive status accounts. Charged off, closed and bankruptcy accounts are not eligible.

Can a cardholder cancel or modify a request in process within a certain period?
A cardholder cannot modify a request in progress.

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Payment Application

When will the FlexLine Advance payment be due?
The first payment will be due on the regular due date following the statement cycle after the advance is taken.

Will cardholders have separate payments to make each month?
No. One payment can be made to cover the payments due on regular purchases, cash advances and on FlexLine Advance. The amount due for the FlexLine Advance plan will be added to the total minimum payment due.

Can cardholders prepay the FlexLine Advance balance? Is there a prepayment penalty?
FlexLine Advance can be prepaid and there is no prepayment penalty.

Can cardholder pay my ongoing credit card purchases off in full and avoid paying interest on purchases after utilizing FlexLine Advance?
Payments over the minimum due will be allocated according to regulations, which allocate the additional amount toward the highest interest rate balance.

If a cardholder has a balance with a promotional APR, can they pay it off before the promotional rate expires?
Any directed payment requests require the cardmember to work directly with the issuer who would allocate the payment through Credit Console based on their criteria.

How will payments be posted in the event of total account minimum payment being made, underpayment or overpayment
All payments – normal, overpayment and underpayment – will be allocated according to regulations. The FlexLine Advance plan works just like any other in this situation.

Can cardholders make directed payments to the FlexLine Advance plans and will the Contact Center be able to support it?
Any directed payment requests require the cardmember to work directly with the issuer who would allocate the payment through Credit Console based on their criteria.

Can we select/customize payment period offerings or will we have to choose from a predefined set?
You can choose up to three options and set Interest Rate and Payment Period for each. There is no predefined interest rate or payment period, which allows each issuer to work within preferred risk profiles and pricing options.

Can we set up different terms for each LOGO or do they all need to be the same?
Different terms can be set at the LOGO level.

Will the FlexLine Advance credit plan balance auto revert to the default retail plan on the account if not paid in full by the end of the term?
The interest rate is fixed and would stay at the fixed rate unless the account goes delinquent and reaches a level to qualify for penalty pricing at which stage the entire balance will be subject to the penalty pricing.

Is the FlexLine Advance plan eligible for skip payments? If so, how does that affect the term and the next minimum payment?
Yes. Skip payments will apply in the same way to all balances and payments due across plans. The payment plan will be extended by the number of billing cycles that were subject to the skip payment. This will not affect the minimum payment due for the plan when repayment resumes.

If we are offering three months of skip payments during COVID-19 can they also skip the payment on FlexLine Advance if we approve?
A skip payment is applied at the account level if activated and it will extend the payment period by the number of months the account had the skip pay active.

In the event of a missing FlexLine Advance deposit, dispute or fraud claim, how will the cardholder/financial institution initiate an ACH inquiry or dispute?
The current dispute process and approach will remain the same. Any issues with funds disbursement will be researched with the processor just like any other ACH request.

Will I know the monthly payment requirement at the time I complete a FlexLine request?
Exact monthly payments are not known at the time of a request because interest amounts are added to the portion of the principal balance. The payment amount consists of the principal balance divided equally amongst the payment period plus the interest assessed on the outstanding advance balance.

If a new credit card relationship was opened for this promotion should we wait 10 business days before allowing cardholders to do a FlexLine Advance, or will OAM let them have immediate availability?
If the cardholder has registered and can access OAM Message Center, they would have access to a FlexLine Advance request.

Is a FlexLine Advance coded as a purchase transaction or a cash advance? How is it reported?
A FlexLine Advance is coded as a purchase. All ACH requests will be reported in the existing D12 report.

How will FlexLine Advance work with Visa and ACH regulations?
FlexLine Advance will follow ACH regulations and associated ACH recourse actions.

Are there additional documents consumers need to sign for this advance? If so, how do they get those?
Please consult your legal and compliance teams for appropriate requirements.

Will there be fraud monitoring?
Existing mitigating controls will apply.

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Statements and Messaging

Where does a cardholder find the status of a FlexLine Advance?
The OAM Message Center will be used to provide the status of the request.

How does FlexLine Advance appear on statements?
FlexLine Advance appears as a separate transaction on the statement. The FlexLine transaction will show up in the transaction section. The balance, interest rate, and other plan details will be displayed in the plan summary section.

If members already have a credit card balance and they use a FlexLine Advance, will their statement reflect the interest rates for both?
Yes, the statement would reflect the interest rate associated with each balance.

Does the cardholder make two payments on their credit card ─ one toward the current balance and one for the FlexLine Advance?
One payment for the total minimum due can be made which will be applied towards each balance.

What if the FlexLine Advance is not paid off within the terms? Or what if a payment is not the amount agreed upon?
The account would go delinquent based on your set parameters if a minimum payment is not made.

What do the initial and subsequent cardholder statements show with a FlexLine Advance? How will those show on OAM and printed statements?
The FlexLine Advance will look like any other plan with its own payment due and interest rate. OAM will show the ACH transactions with description, similar to how other purchase transactions are displayed.

Will there be any cardholder letters prepared that address this transaction or related inquiries?
No unique letters are planned at this time. The OAM Message Center will be used to provide the status of the request.

Will there be new or additional reports produced?
There will be no new reports. D12 is an existing report that will contain the list of all successful and declined ACH transactions.

How will this be reported to the credit bureaus?
Credit bureau reporting will continue to be based on the activity and balance of the cardholder at the account level.

If a cardholder is having difficulty initiating a FlexLine Advance, how will Contact Center agents be able to help?
FlexLine Advance is initiated by the cardholder through OAM Message Center. The Contact Center can assist with questions or help navigate OAM but will not be able to independently initiate the process.

Will we need to provide disclosures to cardholders?
Regulation Z requires disclosures to be provided for cardholders for any new offering. As such, the regulation contains model forms and clauses for appropriate disclosure of open-end credit such as Model G-19 in Appendix G of Regulation Z, among others. Your institution will have to provide any disclosure documentation to Fiserv after consulting with your legal and compliance professionals. Fiserv does not provide legal and/or compliance advice to clients.

Do financial institutions need to create three different disclosures for each rate and term or can they all be on one disclosure?
Please consult your legal and compliance teams for disclosure requirements.
 

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Have a question for us?

For more information on FlexLine Advance, including what is needed to add the new feature, call your Client Executive or fill out the form below.