Calculating interest accruals

At cycle closing time, the Pismo platform verifies a set of scenarios that indicate whether the account must be marked to accrue or not in the next cycle.

Minimum amount

In Brazil, there is the concept of MINIMO BOLETO. This is an issuer-configured minimum amount, below which the cardholder's invoice amount is not charged. You can set its value as a program parameter. If the closing statement's total amount is greater or equal than MINIMO BOLETO, the account should accrue interest.

The following business rules apply to MINIMO_BOLETO:

  • If the MINIMO_BOLETO parameter does not exist or MINIMO_BOLETO = 0, the account must be marked to accrue in the next cycle.
  • If statement total amount >= MINIMO_BOLETO, the account must be marked to accrue in the next cycle.
  • If statement total amount < MINIMO_BOLETO, the account must not be marked to accrue in the next cycle.

Note: Regardless of its Brazilian name - MINIMO_BOLETO - this can be configured for all clients.

Configuring transactions not used when calculating interest accruals

In Brazil, there are regulations stating that interest cannot be charged or a customer reported as delinquent if there are only credit card fees as due transactions. Even if you are not registered for business in Brazil, you have the option to designate specific transaction types, including fees, that the platform checks to determine if the account must accrue or not. If, at cycle closing time, the statement only has transactions of those configured transaction types, the next cycle is marked not to accrue. Otherwise, the next cycle is marked to accrue. There is a program parameter - Ignore accruals for these transaction types - you can set for this purpose. You can use the following endpoints for this:

  • Update program parameter values - Update a program parameter - in this case, the parameter for transaction types to ignore when calculating interest accrual - with a list array, which would contain transaction type IDs for this use case. Note that this must be a complete list, and not just transaction types you wish to add.
  • Get program parameter values - Return an array value list for a program parameter.
  • Delete program parameter values - Delete values for a program parameter.

For this use case, use a parameterId = 1. program parameter ID = 1

Balance program parameters

In addition to the program parameter described in the previous section above, the following are program parameters you can set that are directly related to interest-accruals.

Program parameterDescription
Interest projection reversalDefines whether the projected interest between the cut (closing) and the due date of the invoice should be reversed if any payment occurs before the due date.
0 - Default (do not reverse)
1 - Reverse
Accrual calculation strategyParameter to define the start date for daily accruals:
0 - Normal (due date +1)
1 - Calculation goes back to debit’s date (first installment: transaction date + 1; other installments: corresponding cycle start date + 1).
Accrual reversal strategyParameter responsible for configuring the accrual reversal strategy in the event of a purchase cancellation.
Number of days to block the account for unpaid statementNumber of days after due date to block the account for nonpayment.
Minimum boletoWhen the statement amount is less than the value configured as MINIMO BOLETO, the outstanding balance does not accrue interest.
Stop accrual (days)Maximum days in overdue for which the calculation of fees, interest ,and fines will be posted. The platform won’t post any accrued amount that was calculated after the STOP_ACCRUAL number of days. You can still post these accruals manually using the Statements API

Note: When an account has already passed the stop accrual number of days, provided that statement closes above MINIMO_BOLETO, the account is marked not to accrue even if there are only configured transactions types.