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 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.
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.
Configuring transactions not used when calculating interest accruals
You can 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 types, the next cycle is marked to not accrue. There is a program parameter, IGNORE_ACCRUALS_IF_ONLY_TTS, that you use for this purpose. Use the following endpoint to configure this parameter:
- Update multivalue program parameter values: In the
valuesfield, pass an array of transaction type IDs for the transaction types that you want to configure.
Use the following endpoints to retrieve a list of the configured transaction types or to delete the list, respectively:
Balance program parameters
In addition to the program parameter described in the previous section, the following are program parameters you can set that are directly related to interest-accruals.
| Program parameter | Description |
|---|---|
| Interest projection reversal | Defines 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 strategy | Parameter 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 strategy | Parameter responsible for configuring the accrual reversal strategy in the event of a purchase cancellation. |
| Number of days to block the account for unpaid statement | Number of days after due date to block the account for nonpayment. |
| Minimum boleto | An account also does not accrue charges if the unpaid balance is less than the value of MINIMO_BOLETO. |
| 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 |
Updated 29 days ago