Modern card and payment programs are messy by default. Transactions arrive late, out of order, partially captured, duplicated, or adjusted days after the fact. Without a robust reconciliation layer, ledgers drift, balances become unreliable, and operations teams are left stitching together reality by hand.

Today, we’re excited to introduce Reconciliation in Canopy — a production-grade reconciliation service designed to keep your ledger accurate, auditable, and trustworthy, even when upstream systems are not.

🔍 Visibility Into Reconciliation Jobs & Exceptions

Reconciliation jobs are now visible directly in Canopy OS, with clear indicators for:

• Provider and entity being reconciled
• Execution timing and duration
• Whether exceptions were detected

Teams can drill into each job to review individual exceptions and their resolution status.

🚨 Clear Exception Types & Resolution

When mismatches are found, Canopy classifies them into actionable exception types such as:

• Amount mismatches
• Missing internal transactions
• Status mismatches
• Duplicate matches

Each exception includes a clear explanation and recommended or applied resolution.

🛠️ Backdated, Auditable Corrections

When enabled, Canopy can resolve certain discrepancies using backdated transactions, ensuring:

• Historical balances remain correct
• Statements stay consistent
• All actions are explicit, traceable, and audit-ready

Nothing is silently rewritten.

✅ Built for Real Credit Programs

Canopy does not replace your issuer. Instead, it provides:

• A definitive system of record for balances
• A reconciliation layer that absorbs issuer complexity
• A scalable foundation for servicing and audit

With Reconciliation, issuer data can be imperfect — while your ledger stays correct.

In an effort to continuously modernize our financial ledger and post-origination LMS, Canopy is expanding its support of Advance-based financing products, such as Merchant Cash Advances (MCAs). These products give lenders a flexible alternative to Loans and Lines of Credit; they tend to have less complexity than traditional interest-bearing credit, as well as a lower regulatory burden.

Advances are structurally different from interest-bearing loans: typically there's no maturity date, no interest, fixed periodic payments, and total repayment defined by a factor rate, not APR. Until now, most servicing systems retrofitted loan logic to mimic MCA behavior, leading to awkward workarounds, misaligned amortization, and poor transparency.

🔥 What’s better with Canopy

With this foundation-level domain, Canopy can natively handle Advances with the mechanics they actually use in the real world:

• No-maturity lifecycle with ongoing cycle creation until the purchased amount is fully repaid
• Fixed-amount payments without interest accrual (daily, weekly, or monthly)
• Clear payoff logic based solely on remaining balance. No interest, no recalculation
• Full servicing experience in Canopy OS, including repayment progress, schedules, and transaction history
• API-first origination and servicing purpose-built for MCA-style workflows

💡 Why this matters

This unlocks a completely new product class for lenders building on Canopy, especially those serving small businesses with uneven cash flow or embedded commerce platforms offering fast, upfront capital.

By giving Advances first-class treatment (not a hack on top of loans), Canopy becomes one of the few servicing platforms that can power Loans + Lines + Advances with equal clarity, precision, and configurability.

Lenders can now design, originate, and service their MCA product end-to-end with correct ledgering, correct repayment logic, and a clean UI experience without custom code or downstream workarounds.

We’ve fixed an issue that prevented uploaded documents from persisting across related organizations — specifically between Master Account, Originator, and Owner entities in CanopyOS.

🧩 What was happening

Previously, when an account was associated with multiple organizations, documents uploaded under one org were not visible to others in the same account hierarchy. This meant that new organizations could not access original uploaded documents, impacting visibility and workflow continuity in CanopyOS.

🔧 What we fixed

Document visibility is now properly synchronized across connected orgs. When a document is uploaded under one organization, it will now persist and remain accessible across Master Account, Originator, and Owner contexts.

A refreshed way to manage installment loans is here. The new Installment Loan OS experience brings a cleaner, more powerful, and more connected view into your portfolio. Now your team can service faster, see clearer, and act with confidence.

✨ What’s new

A Simpler, Smarter Interface

We’ve stripped back the clutter and reimagined the layout to highlight what matters most which are key loan metrics and servicing actions, front and center.

Event Processing, Made Easy

Roll time (event processing) directly from OS in lower environments. It’s a smoother way to test, troubleshoot, and validate account behavior end-to-end.

Do More from OS

Expanded servicing functionality means you can handle more day-to-day tasks right where you already are — no extra tools or tabs required.

Account Certified Time Pill

Stay perfectly in sync. The new certified time indicator makes it clear exactly which event was last processed, so you always know the system’s state of record.

Collateral Management

Tie collateral directly to a loan, and keep a live view of loan-to-value (LTV) over time. Smarter collateral tracking, now built into OS.

Principal Payback Progress Bar

See repayment progress at a glance. A new visual indicator makes it easy to understand how much principal has been paid down.

Borrower Segmentation Tags

Organize your portfolio your way. Add segmentation tags to borrowers to unlock richer analytics and more precise servicing strategies.

🔔 Available in Beta

The new Installments OS experience is currently in beta. If you’d like to explore it early or share feedback with our team, reach out to customer support via email: [email protected]

We’d love to get you onboard.

Canopy has introduced organization-level access controls across Canopy OS, APIs, reporting, and notifications to enable secure multi-institutional lending. This change ensures that lenders, partner banks, and loan buyers only see accounts and loans they are authorized to view, with all UI views, API responses, and reports automatically scoped by organizational ownership.

When creating a new account for a borrower via API, you can specify the owning organization. Ownership transfers between organizations are supported via a dedicated API, and webhook notifications are sent to all impacted parties when a transfer occurs.

No action is required for existing customers of Canopy - all existing accounts have been associated with your organization. If you need to add new organizations (e.g. for new bank partners), please contact Canopy and the team can create them for you.

For full details on how organization-level access controls work, click here.

Calculate Nominal Interest Rate Endpoint: Determines the base interest rate for loan terms, designed to work seamlessly with our existing amortization schedule preview functionality to ensure consistent rate calculations across your borrower-facing materials and actual loan servicing.

Use Cases

• Amortization Schedule Consistency: Use the nominal interest rate endpoint alongside our amortization schedule preview to ensure that payment schedules shown to borrowers during the application process exactly match what will be generated when the loan is booked in Canopy's servicing system.

Canopy has enhanced our controlled processing workflow (docs around controlled processing can be found here) to provide better visibility and error handling for event processing operations. The API now returns detailed execution metrics and implements protective measures to prevent cascading failures in sandbox environments.

What's improved?

Enhanced Response Details: Controlled processing now returns comprehensive execution statistics, including:

• successful_events: Number of events that processed successfully
• failed_events: Number of events that encountered errors
• total_attempted: Total number of events the system attempted to process

Improved Error Handling: When events fail during controlled processing, the account enters a paused state to prevent further issues. Subsequent event processing attempts will return a 409 Conflict status with a clear error message indicating that failed events must be resolved before retrying.

Data Direct's end-of-day refresh system was previously based on UTC day boundaries, causing delayed data updates for accounts with minimal transaction activity. This resulted in stale calculations for up to 24 hours, particularly affecting accounts where business-critical metrics depend on the entity's local end-of-business timing rather than system-wide UTC refresh cycles.

We've enhanced the refresh logic to respect each entity's configured end-of-business schedule, ensuring data extractions occur at appropriate intervals aligned with actual business operations. This improvement guarantees that account calculations and derived metrics reflect current business state, eliminating the lag that previously affected low-activity accounts and providing more accurate, timely data for all Data Direct reporting and analysis.

Canopy now supports tracking payoff amounts and unaccrued interest (sometimes known as imputed interest) balances at the loan level within Data Direct. This information had previously only been exposed at an API level via the GET payoff_amounts endpoint. The new fields have been added to the existing loans table within Data Direct.

• unaccrued_interest_balance_cents - The interest (in cents) on the loan that is pending accrual.
• payoff_amount_cents - The total amount (in cents) required to payoff all balances on the loan, including those pending accrual.

As part of ongoing improvements to servicing in our revolving system, we have added the ability to update the interest rate of a specific transaction on a line of credit.

This can be used to support variable interest rates or policy changes to draw-specific rates like cash advances. Note that such changes cannot be applied retroactively through this endpoint, and that rate changes for compliance with the Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA) are better handled by the respective dedicated endpoints for those purposes.