(India only)

In credit terms, an overdue amount refers to the unpaid (after real due date) amount a customer owes after paying less than the minimum amount due (MAD) on their last closed statement. In addition, if the customer keeps doing this—paying less than MAD over and over—their overdue amount continues to increase due to interest accruals and probably fines/fees.

Credit card issuers are often only concerned with the total overdue amount. In India, however, regulations require delinquency buckets, which categorize overdue amounts by billing cycle.

Configuring delinquency buckets

To configure delinquency buckets for your program, use the Update multivalue program parameter values endpoint to set the program parameter DELINQUENCY_BUCKETS_PAYMENTS_TRANSACTIONS_TYPES to an array of transaction type IDs. These IDs specify the acceptable transaction types for discharging a delinquency bucket balance.

Example

Suppose a statement closes on the 10th day of each month and the due date is the 15th. To keep it simple, assume this is the real due date. Also, assume that the ID for the purchase transaction type is included in the DELINQUENCY_BUCKETS_PAYMENTS_TRANSACTIONS_TYPES array.

Suppose that, after two cycles, the following scenario occurs.

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In the following tables, the date format is MM/DD/YY (month/day/year).

Transactions for Cycle 3 - February 16th

Statement: (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

Transactions for Cycle 4 - March 16

Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

The due date for cycle 1 was in cycle 2 and the customer fully paid the amount due, so the overdue amount and delinquency bucket for cycle 2 are zero.

On the due date for cycle 2 (which was in cycle 3) the MAD was $35.00. The customer paid exactly that amount, so the overdue amount and delinquency bucket for cycle 3 are zero.

At cycle 4 however, customer finances seem to run out of control. The cycle 3 due date has come and its MAD amount is $49.61. This time, the customer does not pay anything. Now, the customer has an overdue amount of $49.61 and the first greater than zero delinquency bucket—also $49.61.

In cycle 5, the cycle 4 closed statement due date occurs, and the corresponding MAD is $104.57. Once more, the customer does not pay any amount, so their updated overdue amount is $104.57. Part of it is the $49.61 delinquency bucket for cycle 4. Another part of it is exactly the difference between the total overdue amount and the previous delinquency bucket, that is, the delinquency bucket for cycle 5 is $54.96.

Transactions for Cycle 5 - April 16

Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

Notice that the total overdue amount is equal to $104.57, composed of two delinquency buckets—$49.61 (cycle 4) and $54.96 (cycle 5).

As with cycles 4 and 5, the customer made no payment for cycle 6 which led them to an updated overdue amount of $168.20, out of which, $63.63 corresponds to the cycle 6 delinquency bucket and the remaining amount as previously summarized.

So this is the current state:

Transactions for Cycle 6 - May 16

Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

In cycle 7 something new happens, the customer pays an amount that matches precisely the first greater than zero delinquency bucket (cycle 4, $49.61). As a result, that delinquency bucket is fully cleared and the current one is calculated as follows: the overdue amount minus the sum of previous non-cleared delinquency buckets’ amounts. Customer payments must clear delinquency buckets from oldest to newest.

Transactions for Cycle 7 - June 16

Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

In conclusion, delinquency buckets are only for the issuer to follow up on the existing overdue amounts and are meant to be completely transparent to account holders, unless the platform customer wants to make them visible or is obligated to do so by regulations.

Delinquency bucket API endpoints

• Get delinquency bucket
• List delinquency buckets

Delinquency bucket events

Delinquency buckets are automatically created and updated, there are no endpoints for doing that.

• Delinquency bucket created
• Delinquency bucket updated