Minimum amount due calculation
Currently, in the cycle closing process, there are three strategies for calculating the minimum amount due (MAD).
Delinquency buckets
When a statement's minimum amount due is not paid, it can result in something called a delinquency bucket. For more information, see Delinquency buckets.
You can change the MAD program parameter to choose your calculation.
| Min payment calculation strategy | Description |
|---|---|
| 0 | 100% outstanding balance of previous statements + configured percentage x balance of debits transactions from closing cycle |
| 1 | Configured percentage x balance of every debits transactions |
| 2 | Includes the difference between the latest minimum amount due and the total paid as 100% for the closing cycle (overdue amount). Also, includes the overlimit amount as 100% for the closing cycle ('Indian model' / MAD). |
Configuring MAD
You can set the minimum value percentage using transaction categories. One category can apply to any number of transaction types.
Example transaction categories
| Category ID | Description | MAD percentage |
|---|---|---|
| 1 | Internal | 5% |
| 2 | Financial | 5% |
| 3 | Non-financial | 5% |
| 4 | Withdrawal | 5% |
| 5 | Installment purchase | 100% |
Example transaction types
| Transaction type ID | Description | Transaction category |
|---|---|---|
| 101 | Purchase | 2 |
| 102 | International purchase | 2 |
| 123 | Withdrawal | 4 |
| 405 | Revolving interest | 3 |
| 407 | Withdrawal fee | 3 |
| 112 | Installment purchase | 5 |
Strategy 0 examples
Statement 1
| Transaction ID | Transaction type | Transaction balance | Min per transaction |
|---|---|---|---|
| 1 | 101 | $200 | $10 |
| 2 | 123 | $100 | $5 |
| 3 | 407 | $2 | $0.10 |
| Total | $302.00 | $15.10 |
Current balance: $302.00
Previous Balance: $0.00
Total Minimum Per Transaction: $15.10
Minimum Payment: $15.10
Statement 2
| Transaction ID | Transaction type | Transaction balance | Min per transaction |
|---|---|---|---|
| 4 | 101 | $100 | $5 |
| 5 | 123 | $100 | $5 |
| 6 | 102 | $100 | $5 |
| 7 | 101 | $0 | $0 |
| 8 | 407 | $2 | $0.10 |
| 9 | 404 | $2 | $0.10 |
| Total | $304 | $15.20 |
Current Balance: $304.00
Previous Balance: $302.00
Total Minimum Per Transaction: $15.20
Minimum Payment: $317.20
Strategy 1 examples
This strategy uses the configured percentages for every due transaction. Calculates the minimum the balance of every due transaction x parametrized value
Minimum payment = SUM(Min per Transaction)
Cycle 1 statement
| Transaction ID | Transaction type | Transaction balance | Min. per transaction |
|---|---|---|---|
| 1 | 101 | $200 | $10 |
| 2 | 123 | $100 | $5 |
| 3 | 407 | $2 | $0.10 |
| Total | $302 | $15.10 |
Current Balance: $302.00
Previous Balance: $0.00
Total Minimum Per Transaction: $15.10
Minimum Payment: $15.10
Cycle 2 statement
| Transaction ID | Transaction type | Transaction balance | Min. per transaction |
|---|---|---|---|
| 4 | 101 | $100 | $5 |
| 5 | 123 | $100 | $5 |
| 6 | 102 | $100 | $5 |
| 7 | 101 | $0 | $0 |
| 8 | 407 | $2 | $0.10 |
| 9 | 404 | $2 | $0.10 |
| Total | $304 | $15.20 |
Current Balance: $304.00
Previous Balance: $302.00
Total Minimum Per Transaction: $15.20
Minimum Payment: $30.30
Strategy 2 examples
Coming soon.
Updated about 2 months ago