> ## Documentation Index
> Fetch the complete documentation index at: https://docs.synctera.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Synctera Smart Card

> The first Synctera consumer credit card offering is a dynamically secured charge card, which we call a **Synctera Smart Card**.

As a secured card, this product does not require the customer to have a long, rich credit history. However, unlike a traditional secured card, its spending power does not come from a fixed deposit; rather, it is based on the available funds of a customer's linked deposit account. This enables a consumer to make purchases on their charge card, while retaining the ability to access the funds that help secure it.

As the customer makes purchases using the charge card, the available funds in the linked deposit account decrease, as does the card's spending power. When the card balance is repaid by the customer, the funds in the linked deposit account are made available again, and the card's spending power is restored.

The Synctera Smart card product comprises two accounts:

* A [deposit account](/v1/docs/checking-savings-accounts-guide) as the security account
* A [secured charge account](/v1/docs/secured-sc-accounts-guide)

## Creating a Smart card product

To issue a Smart card product, the following steps have to be completed:

<Steps>
  <Step title="Create a person">
    As a precursor, a [person must be setup](/v1/docs/create-a-personal-customer), and [KYC/KYB verification](/v1/docs/kyc-kyb-verification) must be completed.
  </Step>

  <Step title="Disclosures">
    These must be accepted by the personal or business customers (including the credit agreement). See the [disclosures section](#disclosures) for details.
  </Step>

  <Step title="Charge secured account application">
    A charge secured account can optionally include an application which can be created via the Application API. Overview [here](/v1/docs/credit-applications-guide).
  </Step>

  <Step title="Adverse Actions">
    If a charge secured application is denied due to KYC failure or other reasons, adverse action reasons need to be sent to the personal customers (optional for business customers) and the adverse actions id needs to be included in the charge secured application when the application status is marked as `CREDIT_DENIED`. See the Adverse Actions API guide \[here].
  </Step>

  <Step title="Create a deposit account for the security">
    See the relevant guide [here](/v1/docs/secured-sc-accounts-guide#using-a-customer-dda-as-a-linked-deposit-account).
  </Step>

  <Step title="Create a secured charge account">
    See the relevant guide [here](/v1/docs/secured-sc-accounts-guide#creating-a-charge_secured-account)
  </Step>

  <Step title="Issue a credit card for the charge account">
    See the [personal cards guide](/v1/docs/personal-cards) for further details.
  </Step>

  <Step title="Link an external bank account to fund the deposit account">
    See the [external accounts guide](/v1/docs/external-accounts-guide) for further details.
  </Step>

  <Step title="At the end of each month, issue a statement to the consumer">
    This will be a combined statement for both accounts. See the [secured charge statement guide](/v1/docs/charge-secured-statements-guide) for further details.
  </Step>
</Steps>

### Disclosures

Before a Smart card product can be used, the FinTech has to inform Synctera of relevant disclosures acknowledged by the customers.

When the consumer is being onboarded:

1. USA Patriot Act Notice
2. E-Sign
3. Privacy Notice

After the consumer has been onboarded:

1. Smart card account agreement
2. Security agreement
3. (Optional) Authorization for automatic payments (from the security account)

For more details on recording acceptance of individual disclosures, see the [disclosure guide](/v1/docs/record-disclosure-acceptance).

### Issue a charge card

When issuing a Smart card, the card type shall be `CREDIT`. You may issue physical or virtual cards.

### Smart card autopay enablement

When setting up charge secured account with system autopay, Fintech can

1. Use disclosure API to send "SC\_AUTO\_PAYMENT" as "ACKNOWLEDGED" when customer opt in to auto pay, then create a charge secured account setting `is_system_auto_pay_enabled` = `true`. This flow is commonly used during the onboarding process OR
2. Create a charge secured account (`is_system_auto_pay_enabled` default is `false`). Then use disclosure API to send "SC\_AUTO\_PAYMENT" as "ACKNOWLEDGED" when customer opts in. Afterward, patch the `is_system_auto_pay_enabled` to be `true`. This flow can be used during onboarding or customer decides to opt in after account is created.

The validation check from Synctera would ensure that `is_system_auto_pay_enabled` cannot be set to `true` for charge secured accounts unless autopay disclosure has been acknowledged by that customer.

<Warning>
  While we continue improving our V1 guides, please visit our [Cards V1 API](/v1/reference/issuecard) for details on how to issue a card of type `CREDIT`.
</Warning>