> ## 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.

# Secured Smart Card

> A charge card secured by funds on a linked deposit account. It runs on credit rails without underwriting or a credit check, and payment history can be reported to the bureaus for credit building.

The Secured Smart Card is a charge card: the cardholder must pay the balance in full each cycle, and the balance cannot roll over. Its spending power is tied to the available balance on a linked deposit account. As the cardholder spends, available funds in that account decrease and so does the card's spending power; when the balance is repaid, spending power is restored.

**Why FinTechs choose it**

* Runs on credit rails, which generally offer higher interchange than debit
* No underwriting or credit check is required
* Payment history can be reported to the bureaus, so it works as a credit builder
* Risk is mitigated by the linked deposit account

<Note>
  Credit products require specific privileges on your organization. Contact your Synctera representative before planning one.
</Note>

## What You Are Building

The product comprises two accounts:

```mermaid mermaid theme={"system"}
%%{init: {"fontFamily": "sans-serif"}}%%
flowchart LR
  D["Deposit account<br/>(security)"] --> C["CHARGE_SECURED account"]
  C --> K["Credit card"]
```

* A [deposit account](/v2/docs/checking-savings-accounts-guide) as the security account
* A [secured charge account](/v2/docs/secured-sc-accounts-guide) that the card spends against

## Step 1 — Create and Verify the Customer

A person must be set up and KYC/KYB verification completed. See [Create a Personal Customer](/v2/docs/create-a-personal-customer) and [KYC/KYB Verification](/v2/docs/kyc-kyb-verification).

## Step 2 — Record Disclosures

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. Authorization for automatic payments from the security account (optional — see Step 6)

See [Record Disclosure Acceptance](/v2/docs/record-disclosure-acceptance).

## Step 3 — Create the Application

A charge secured account can optionally include an application, created through the Application API. See [Credit Applications](/v2/docs/credit-applications-guide).

If an application is denied — whether for KYC failure or another reason — adverse action reasons must be sent to personal customers, and the adverse action ID included in the application when its status is marked `CREDIT_DENIED`. This is optional for business customers. See [Adverse Actions](/v2/docs/adverse-actions-guide).

## Step 4 — Create the Accounts

Create the deposit account that will act as security, then the `CHARGE_SECURED` account linked to it.

See [Secured Charge Accounts](/v2/docs/secured-sc-accounts-guide), which covers using a customer DDA as the linked deposit account and creating the charge secured account itself.

## Step 5 — Issue the Card

Issue against the charge secured account with `"type": "CREDIT"`. Physical and virtual cards are both supported.

See [Card Issuance and Management](/v2/docs/card-issuance-management#issue-a-card).

## Step 6 — Enable Autopay, If Offered

When setting up a charge secured account with system autopay, you have two paths:

* **Opt in during onboarding.** Send the `SC_AUTO_PAYMENT` disclosure as `ACKNOWLEDGED` when the customer opts in, then create the charge secured account with `is_system_auto_pay_enabled` set to `true`.
* **Opt in later.** Create the charge secured account with the default `is_system_auto_pay_enabled` of `false`. When the customer opts in, send the `SC_AUTO_PAYMENT` disclosure as `ACKNOWLEDGED`, then patch `is_system_auto_pay_enabled` to `true`.

Synctera validates that `is_system_auto_pay_enabled` cannot be set to `true` for a charge secured account unless that customer has acknowledged the autopay disclosure.

## Step 7 — Issue Statements

At the end of each month, issue a combined statement covering both accounts. See [Secured Charge Statements](/v2/docs/charge-secured-statements-guide).