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Calculating interest accruals

At cycle closing time, the Pismo platform verifies a set of scenarios that determine whether the account accrues interest in the next cycle.

Minimum amount

The Pismo platform enables you to configure a minimum amount, below which the unpaid balance does not accrue charges. You can set this value using the program parameter MINIMO BOLETO, which is applicable to programs in all regions. If the closing statement's unpaid balance is greater than or equal to this value, the account can accrue charges.

The following business rules apply:

  • If the minimum amount is not set, the account accrues interest in the next cycle.
  • If the minimum amount is set, then:
    • If the unpaid balance is greater than or equal to the minimum amount, the account accrues interest in the next cycle.
    • If the unpaid balance is less than the minimum amount, the account does not accrue interest in the next cycle.

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Note that the minimum amount is different from the minimum amount due (MAD). The minimum amount refers to the amount of unpaid balance, below which, the account does not accrue interest. The minimum amount due is the minimum amount the cardholder must pay to avoid incurring overdue charges.

Setting transaction types to block accrual charges

You can designate specific transaction types (fees, for example) that block accrual charges when they're the only transactions on a statement. If, at cycle closing time, the statement only has transactions of those types, the next cycle is marked to not accrue. For more information, refer to Setting transaction types to block accrual charges.

Additional program parameters for interest accruals

In addition to MINIMO BOLETO, you can set the following program parameters 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.
Stop accrual # of daysMaximum days in overdue for which the calculation of fees, interest, and fines should 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.

Updated about 2 months ago