Authorization Flows

When a cardholder initiates a charge, the authorization process ensures sufficient credit is available, records the transaction, and manages settlement. Canopy facilitates this process by providing APIs to check credit availability, authorize charges, and update settlement statuses.

Step-by-Step Authorization Process

1. Checking Available Credit

Before authorizing a charge, the issuer processor must verify that the borrower has sufficient available credit. This ensures the transaction does not exceed the assigned credit limit.

To check the available credit on the borrower’s financial product (e.g., credit card, charge card, or operational line of credit), call:

📞 API: GET available_credit

The response includes the current available credit after accounting for any pending transactions. If available_credit in the response is greater than or equal to the authorization amount and all other issuer-specific checks pass, the charge can proceed.

2. Recording the Authorized Charge

Once credit availability is confirmed, the issuer processor records the draw by calling Canopy’s API. This step registers the transaction in the system as an authorized charge.

📞 API: POST create_draw

Sample request body:

{
  "amount_cents": 10000,
  "draw_type": "SIMPLE_CHARGE",
  "settlement_status": "AUTHORIZED"
}

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Canopy supports multiple draw types.

For card-based transactions, we recommend using SIMPLE_CHARGE.
The settlement_status of the charge at this stage is AUTHORIZED

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Reference: See the draw types table for all available draw options.

3. Updating Settlement Status

After the transaction is settled, the issuer processor must update the settlement_status in Canopy. This final step ensures the transaction is correctly reflected in the account balance.

📞 API: PATCH settle_transaction

The settlement_status of the charge is updated to SETTLED after the transaction clears. This step finalizes the charge and ensures proper balance updates within Canopy.