On-demand Funding

Overview

On-demand funding is a card product feature that allows financial accounts to maintain a $0 balance until authorization and receive real-time funding as needed.

On-demand funding uses a source financial account for funding account holder financial accounts. When an account holder initiates a transaction, Highnote moves funds from the source financial account into the account holder's financial account to cover the cost of the transaction.

Enable on-demand funding

test prepaid and debit cards

For prepaid and debit card products, you can enable and test on-demand funding features in your Test environment. Highnote must enable the feature for your card product in the Live environment.

When enabling on-demand funding, you can optionally choose to enable pseudo balance.

Use the following mutation to enable on-demand funding and use a boolean value to optionally enable pseudo balance in your Test environment:

EnableOnDemandFundingFeature

Query

mutation EnableOnDemandFundingFeature(
  $input: EnableOnDemandFundingFeatureInput!
) {
  enableOnDemandFundingFeature(input: $input) {
    __typename
    ... on CardProduct {
      id
      features {
        __typename
        enabled
        ... on OnDemandFundingCardProductFeature {
          pseudoBalanceEnabled
        }
      }
    }
    ... on UserError {
      errors {
        errorPath
        code
        description
      }
    }
  }
}

Variables

{
  "input": {
    "cardProductId": "CARD_PRODUCT_ID",
    "pseudoBalanceEnabled": true
  }
}

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Result

{
  "data": {
    "enableOnDemandFundingFeature": {
      "__typename": "CardProduct",
      "id": "CARD_PRODUCT_ID",
      "features": [
        {
          "__typename": "OnDemandFundingCardProductFeature",
          "enabled": true,
          "pseudoBalanceEnabled": true
        }
      ]
    }
  },
  "extensions": {
    "requestId": "REQUEST_ID"
  }
}

Issue source financial account

Before issuing a financial account with an on-demand funding source, you must have a source financial account. A source financial account is a pre-funded account that links to the account holder's financial account for funding.

The following accounts can be used as source financial accounts:

A financial account issued against an application
A product funding account
A financial account that exists at the account holder level

Source financial accounts can be existing accounts or new accounts. To issue a new financial account as your source financial account, use the following mutation:

IssueFundingFinancialAccountForApplication

Query

mutation IssueFundingFinancialAccountForApplication(
  $input: IssueFundingFinancialAccountForApplicationInput!
) {
  issueFundingFinancialAccountForApplication(input: $input) {
    ... on FinancialAccount {
      id
      name
      createdAt
      updatedAt
      application {
        id
        createdAt
      }
      cardProduct {
        id
        vertical
      }
    }
  }
}

Variables

{
  "input": {
    "applicationId": "APPLICATION_ID",
    "name": "On-demand funding source account"
  }
}

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Result

{
  "data": {
    "issueFinancialAccountForApplication": {
      "id": "APPLICATION_ID",
      "name": "On-demand funding source account",
      "createdAt": "2021-12-28T18:20:49.932Z",
      "updatedAt": "2021-12-28T18:20:49.960Z",
      "application": {
        "id": "APPLICATION_ID",
        "createdAt": "2021-12-20T17:59:33.570Z"
      },
      "cardProduct": {
        "id": "CARD_PRODUCT_ID",
        "vertical": "GENERAL_PURPOSE_RELOADABLE"
      }
    }
  }
}

Issue a financial account with on-demand funding source

When an account holder's application is approved, you can issue the account holder a financial account with an on-demand funding source.

Use the following mutation to issue a financial account with an on-demand funding source:

IssueFinancialAccountForApplicationWithOnDemandFundingSource

Query

mutation IssueFinancialAccountForApplicationWithOnDemandFundingSource(
  $input: IssueFinancialAccountForApplicationWithOnDemandFundingSourceInput!
) {
  issueFinancialAccountForApplicationWithOnDemandFundingSource(input: $input) {
    ... on FinancialAccount {
      id
      externalId
      name
      createdAt
      updatedAt
      application {
        id
        createdAt
      }
      cardProduct {
        id
        vertical
      }
      features {
        __typename
        enabled
        createdAt
        updatedAt
        ... on OnDemandFundingFinancialAccountFeature {
          sourceFinancialAccountId
        }
      }
      directDepositDetails {
        id
        restrictedDetails {
          __typename
          ... on DirectDepositDetailRestrictedDetails {
            number
            routingNumber
            bank {
              name
            }
          }
        }
      }
      owner {
        __typename
        ... on USPersonAccountHolder {
          id
        }
      }
    }
  }
}

Variables

{
  "input": {
    "applicationId": "APPLICATION_ID",
    "name": "Financial Account",
    "externalId": "YOUR_EXTERNAL_ID",
    "sourceFinancialAccountId": "FINANCIAL_ACCOUNT_ID"
  }
}

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Result

{
  "data": {
    "IssueFinancialAccountForApplicationWithOnDemandFundingSource": {
      "id": "FINANCIAL_ACCOUNT_ID",
      "externalId": "ABC123456",
      "name": "John Doe - Account",
      "createdAt": "2021-12-28T18:20:49.932Z",
      "updatedAt": "2021-12-28T18:20:49.960Z",
      "application": {
        "id": "APPLICATION_ID",
        "createdAt": "2021-12-20T17:59:33.570Z"
      },
      "cardProduct": {
        "id": "CARD_PRODUCT_ID",
        "vertical": "GENERAL_PURPOSE_RELOADABLE"
      },
      "features": [
        {
          "__typename": "DirectDepositFinancialAccountFeature",
          "enabled": true,
          "createdAt": "2021-12-28T18:20:49.933Z",
          "updatedAt": "2021-12-28T18:20:49.933Z"
        },
        {
          "__typename": "DebitPaymentCardFinancialAccountFeature",
          "enabled": true,
          "createdAt": "2021-12-28T18:20:49.933Z",
          "updatedAt": "2021-12-28T18:20:49.933Z"
        },
        {
          "__typename": "OnDemandFundingFinancialAccountFeature",
          "enabled": true,
          "createdAt": "2021-12-28T18:20:49.933Z",
          "updatedAt": "2021-12-28T18:20:49.933Z",
          "sourceFinancialAccountId": "FINANCIAL_ACCOUNT_ID"
        }
      ],
      "directDepositDetails": {
        "id": "FINANCIAL_ACCOUNT_ID",
        "restrictedDetails": {
          "__typename": "AccessDeniedError"
        }
      },
      "owner": {
        "__typename": "USPersonAccountHolder",
        "id": "ACCOUNT_HOLDER_ID"
      }
    }
  }
}

Lookup source financial account

Once a financial account is issued, you can look up the source financial account using the following query:

FindSourceFinancialAccount

Query

query FindSourceFinancialAccount($id: ID!) {
  node(id: $id) {
    __typename
    ... on FinancialAccount {
      __typename
      id
      name
      features {
        __typename
        enabled
        createdAt
        updatedAt
        ... on OnDemandFundingFinancialAccountFeature {
          sourceFinancialAccountId
        }
      }
    }
  }
}

Variables

{
  "id": "FINANCIAL_ACCOUNT_ID"
}

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Result

{
  "data": {
    "node": {
      "__typename": "FinancialAccount",
      "id": "FINANCIAL_ACCOUNT_ID",
      "name": "My Financial Account Name",
      "features": [
        {
          "__typename": "DirectDepositFinancialAccountFeature",
          "enabled": true,
          "createdAt": "2023-04-25T22:12:10.118Z",
          "updatedAt": "2023-04-25T22:12:10.118Z"
        },
        {
          "__typename": "PrePaidPaymentCardFinancialAccountFeature",
          "enabled": true,
          "createdAt": "2023-04-25T22:12:10.118Z",
          "updatedAt": "2023-04-25T22:12:10.118Z"
        },
        {
          "__typename": "OnDemandFundingFinancialAccountFeature",
          "enabled": true,
          "createdAt": "2023-04-25T22:12:10.118Z",
          "updatedAt": "2023-04-25T22:12:10.118Z",
          "sourceFinancialAccountId": "SOURCE_FINANCIAL_ACCOUNT_ID"
        }
      ]
    }
  },
  "extensions": {
    "requestId": "REQUEST_ID"
  }
}

Manage pseudo limit and balance

Enable pseudo balance

Enable pseudo balance by setting pseudoBalanceEnabled to true on the OnDemandFundingCardProductFeature.

Each financial account is linked to a source financial account. A card product can have multiple source accounts, but each financial account has exactly one. An account holder can have multiple financial accounts, each with its own independent limit.

These mutations let you allocate spending limits from a source account to individual financial accounts and manage their available balances.

Source account and financial account relationship
Card Product
├── Source Account A
│   ├── Financial Account 1 (limit: $500)
│   ├── Financial Account 2 (limit: $300)
│   └── Financial Account 3 (limit: $200)
│       ALLOCATED_PSEUDO_LIMIT = $1,000
│
└── Source Account B
    ├── Financial Account 4 (limit: $400)
    └── Financial Account 5 (limit: $600)
        ALLOCATED_PSEUDO_LIMIT = $1,000

Limit and balance are two separate concepts on different ledgers:

Limit (ACCOUNT_HOLDER_PSEUDO_LIMIT ledger) — the maximum spending ceiling for an individual financial account. When you set a limit, Highnote also debits ALLOCATED_PSEUDO_LIMIT on the source account, which tracks the sum of all allocations across its linked financial accounts.
Balance (PSEUDO_AVAILABLE_CASH ledger) — the current available amount a cardholder can spend.

Highnote declines transactions that would exceed the available balance. These mutations support incremental adjustments (add or subtract amounts) and automatic resets on a configurable cadence.

Mutation	What it does
`setPseudoLimit`	Set the spending limit to an absolute amount. Optionally configure auto-reset cadence.
`updatePseudoLimit`	Increment or decrement the spending limit.
`updatePseudoBalance`	Increment or decrement the available balance.
`resetPseudoBalance`	Reset the balance to zero. Configure auto-reset cadence.

Set pseudo limit

Use setPseudoLimit to set the maximum allowable amount that the pseudo balance can reach before rejecting transactions. This sets the ALLOCATED_PSEUDO_LIMIT ledger value.

You can optionally configure automatic resets by providing a cadence and resetTime. When resetAvailableBalance is set to true, the available balance resets according to the specified cadence. For cadence options, see Reset pseudo balance.

setPseudoLimit

Query

mutation SetPseudoLimit($input: SetPseudoLimitInput!) {
  setPseudoLimit(input: $input) {
    ... on InterFinancialAccountTransfer {
      toFinancialAccount {
        id
        features {
          ... on ResetBalanceFinancialAccountFeature {
            cadence
            createdAt
            effectiveFrom
            effectiveThrough
            enabled
            resetTime
            updatedAt
          }
        }
      }
      fromFinancialAccount {
        id
        ledgers {
          name
          nextBalanceResetAt
          debitBalance {
            value
          }
        }
      }
    }
    ... on UserError {
      errors {
        path
        code
        description
      }
    }
  }
}

Variables

{
  "input": {
    "amount": {
      "value": 10000,
      "currencyCode": "USD"
    },
    "resetAvailableBalance": true,
    "cadence": "DAILY",
    "resetTime": "2026-01-27T01:23:45.000Z",
    "financialAccountId": "FINANCIAL_ACCOUNT_ID"
  }
}

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Result

{
  "data": {
    "setPseudoLimit": {
      "toFinancialAccount": {
        "id": "ac_2",
        "features": [
          {
            "cadence": "DAILY",
            "createdAt": "2026-01-26T23:19:03.950Z",
            "effectiveFrom": "2026-01-26T23:19:03.950Z",
            "effectiveThrough": null,
            "enabled": true,
            "resetTime": "2026-01-27T01:23:45.000Z",
            "updatedAt": "2026-01-26T23:21:23.251Z"
          }
        ]
      },
      "fromFinancialAccount": {
        "id": "ac_3",
        "ledgers": [
          {
            "name": "ALLOCATED_PSEUDO_LIMIT",
            "nextBalanceResetAt": null,
            "debitBalance": {
              "value": 10000
            }
          }
        ]
      }
    }
  }
}

Update pseudo limit

Use updatePseudoLimit to increment or decrement the ALLOCATED_PSEUDO_LIMIT.

Increment by setting sign to POSITIVE
Decrement by setting sign to NEGATIVE

updatePseudoLimit

Query

mutation UpdatePseudoLimit($input: UpdatePseudoLimitInput!) {
  updatePseudoLimit(input: $input) {
    ... on InterFinancialAccountTransfer {
      fromFinancialAccount {
        ledgers {
          __typename
          name
          debitBalance {
            value
          }
          creditBalance {
            value
          }
        }
      }
    }
    ... on UserError {
      errors {
        path
        code
        description
      }
    }
  }
}

Variables

{
  "input": {
    "amount": {
      "value": 1500,
      "currencyCode": "USD"
    },
    "financialAccountId": "FINANCIAL_ACCOUNT_ID",
    "sign": "POSITIVE"
  }
}

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Result

{
  "data": {
    "updatePseudoLimit": {
      "fromFinancialAccount": {
        "ledgers": [
          {
            "__typename": "Ledger",
            "name": "AVAILABLE_CASH",
            "debitBalance": {
              "value": 0
            },
            "creditBalance": {
              "value": 100000
            }
          },
          {
            "__typename": "Ledger",
            "name": "ALLOCATED_PSEUDO_LIMIT",
            "debitBalance": {
              "value": 50000
            },
            "creditBalance": {
              "value": 0
            }
          }
        ]
      }
    }
  }
}

Update pseudo balance

Use updatePseudoBalance to increment or decrement the PSEUDO_BALANCE on a financial account.

Increment by setting sign to POSITIVE
Decrement by setting sign to NEGATIVE

updatePseudoBalance

Query

mutation UpdatePseudoBalance($input: UpdatePseudoBalanceInput!) {
  updatePseudoBalance(input: $input) {
    ... on InterFinancialAccountTransfer {
      fromFinancialAccount {
        id
        ledgers {
          name
          creditBalance {
            value
          }
          debitBalance {
            value
          }
        }
        features {
          __typename
          ... on ResetBalanceFinancialAccountFeature {
            cadence
            createdAt
            effectiveFrom
            effectiveThrough
            enabled
            resetAvailableBalance
            resetTime
            updatedAt
          }
        }
      }
    }
    ... on UserError {
      errors {
        path
        code
        description
      }
    }
  }
}

Variables

{
  "input": {
    "amount": {
      "value": 20,
      "currencyCode": "USD"
    },
    "financialAccountId": "FINANCIAL_ACCOUNT_ID",
    "sign": "POSITIVE"
  }
}

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Result

{
  "data": {
    "updatePseudoBalance": {
      "fromFinancialAccount": {
        "id": "ac_1",
        "ledgers": [
          {
            "name": "PSEUDO_AVAILABLE_CASH",
            "creditBalance": {
              "value": 60000
            },
            "debitBalance": {
              "value": 0
            }
          },
          {
            "name": "ACCOUNT_HOLDER_PSEUDO_LIMIT",
            "creditBalance": {
              "value": 60000
            },
            "debitBalance": {
              "value": 0
            }
          },
          {
            "name": "PSEUDO_CASH",
            "creditBalance": {
              "value": 0
            },
            "debitBalance": {
              "value": 60000
            }
          }
        ],
        "features": [
          {
            "__typename": "ResetBalanceFinancialAccountFeature",
            "cadence": "DAILY",
            "createdAt": "2026-01-09T17:00:00.000Z",
            "effectiveFrom": "2026-01-09T17:00:00.000Z",
            "effectiveThrough": null,
            "enabled": true,
            "resetAvailableBalance": true,
            "resetTime": "2026-01-10T00:00:00.000Z",
            "updatedAt": "2026-01-09T17:00:00.000Z"
          }
        ]
      }
    }
  }
}

Reset pseudo balance

Use resetPseudoBalance to reset the pseudo balance to zero. Set resetAvailableBalance to true and provide a cadence to configure automatic resets.

The following cadence options are available:

Cadence	Description
`DAILY`	Resets daily at the time specified in `resetTime`.
`WEEKLY`	Resets weekly on the same weekday and time as `resetTime`.
`MONTHLY`	Resets monthly on the same day-of-month and time as `resetTime`.
`NINETY_DAYS`	Resets every 90 calendar days from the `resetTime` date and time.
`QUARTERLY`	Resets quarterly (every 3 months) on the same day and time as `resetTime`.
`YEARLY`	Resets annually on the same date and time as `resetTime`.
`LIFETIME`	Never resets automatically. Manual reset via `resetPseudoBalance` required.

resetPseudoBalance

Query

mutation ResetPseudoBalance($input: ResetPseudoBalanceInput!) {
  resetPseudoBalance(input: $input) {
    ... on InterFinancialAccountTransfer {
      fromFinancialAccount {
        id
        ledgers {
          name
          creditBalance {
            value
          }
          debitBalance {
            value
          }
        }
        features {
          __typename
          ... on ResetBalanceFinancialAccountFeature {
            cadence
            createdAt
            effectiveFrom
            effectiveThrough
            enabled
            resetAvailableBalance
            resetTime
            updatedAt
          }
        }
      }
      toFinancialAccount {
        id
        ledgers {
          name
          creditBalance {
            value
          }
          debitBalance {
            value
          }
        }
      }
    }
    ... on UserError {
      errors {
        path
        code
        description
      }
    }
  }
}

Variables

{
  "input": {
    "financialAccountId": "FINANCIAL_ACCOUNT_ID",
    "cadence": "DAILY",
    "resetAvailableBalance": true
  }
}

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Result

{
  "data": {
    "resetPseudoBalance": {
      "fromFinancialAccount": {
        "id": "ac_1",
        "ledgers": [
          {
            "name": "AVAILABLE_CASH",
            "creditBalance": {
              "value": 60000
            },
            "debitBalance": {
              "value": 0
            }
          },
          {
            "name": "CASH",
            "creditBalance": {
              "value": 0
            },
            "debitBalance": {
              "value": 60000
            }
          },
          {
            "name": "ALLOCATED_PSEUDO_LIMIT",
            "creditBalance": {
              "value": 0
            },
            "debitBalance": {
              "value": 25000
            }
          }
        ],
        "features": []
      },
      "toFinancialAccount": {
        "id": "ac_1",
        "ledgers": [
          {
            "name": "PSEUDO_AVAILABLE_CASH",
            "creditBalance": {
              "value": 0
            },
            "debitBalance": {
              "value": 0
            }
          },
          {
            "name": "ACCOUNT_HOLDER_PSEUDO_LIMIT",
            "creditBalance": {
              "value": 25000
            },
            "debitBalance": {
              "value": 0
            }
          },
          {
            "name": "PSEUDO_CASH",
            "creditBalance": {
              "value": 0
            },
            "debitBalance": {
              "value": 0
            }
          }
        ]
      }
    }
  }
}

Overview​

Enable on-demand funding​

EnableOnDemandFundingFeature​

Issue source financial account​

IssueFundingFinancialAccountForApplication​

Issue a financial account with on-demand funding source​

IssueFinancialAccountForApplicationWithOnDemandFundingSource​

Lookup source financial account​

FindSourceFinancialAccount​

Manage pseudo limit and balance​

Set pseudo limit​

setPseudoLimit​

Update pseudo limit​

updatePseudoLimit​

Update pseudo balance​

updatePseudoBalance​

Reset pseudo balance​

resetPseudoBalance​

Overview

Enable on-demand funding

EnableOnDemandFundingFeature

Issue source financial account

IssueFundingFinancialAccountForApplication

Issue a financial account with on-demand funding source

IssueFinancialAccountForApplicationWithOnDemandFundingSource

Lookup source financial account

FindSourceFinancialAccount

Manage pseudo limit and balance

Set pseudo limit

setPseudoLimit

Update pseudo limit

updatePseudoLimit

Update pseudo balance

updatePseudoBalance

Reset pseudo balance

resetPseudoBalance