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The instalment plan is a way to repay credit card transactions by dividing them into smaller equal payments called instalments. You can customise these plans according to your preferences by setting the repayment time (instalment period), the interest and fees, and determining which transactions are eligible for the particular plan. This feature is also known as buy now pay later (BNPL).
Main instalment plan features are as follows:
Preview the instalment schedule beforehand to see what the user needs to pay for each monthly instalment.
Open multiple plans within a single contract.
Send invoices at a contract level for each instalment plan and its components.
Configure the plan to free up the credit limit when a purchase is moved into a plan.
Cancel the plan at any time - The remaining plan balance is set back to the credit account and will accrue interest at the current annual interest rate for credit account purchases.
The process to set up card instalments is as follows:
Create receivables formation and line rules for contract invoicing (via API).
Create instalment plan types for the different credit products (via API and BackOffice).
Create instalment plans for specific transactions (via API and BackOffice).
You need the following privileges:
To create an instalment plan type:
Select Cards > Settings > Instalment plan types.
On the Instalment plan types page, you can see the list of existing instalment plan types, if any.
Click Add new instalment plan type and enter the following parameters:
Click Submit to create the instalment plan type.
Instalment plan type*
Text
Enter a name for the instalment plan type that you are creating.
Description*
Text
Enter a description for the instalment plan type.
Credit type*
List
Select a credit type from the drop-down menu.
Fee calculation rule
List
The defined rule for calculating the instalment plan fee.
Select one of the following values:
PERCENTAGE - The fee is a percentage of the instalment plan principal balance.
FIX - The fee is a fixed amount.
First payment lag days*
Number
The minimum number of days that must be between contract activation and the first invoice date or first invoice due date.
Enter a value between 1 - 31.
Interest calculation rule
List
The defined rule for calculating the instalment plan interest. Select one of the following values:
ACTUAL/360
ACTUAL/365
30/360
ACTUAL/ACTUAL
Number of repayments*
Number
Enter the instalment plan repayment period.
Reporting product code
List
Select a reporting product code from the drop-down menu.
The code represents the category of product or service for management reporting purposes. For more information, see .
Valid from* Valid until date
Date
Select the date range from which the plan type is valid after creation.
To change the interest rate of the instalment plan, follow these steps:
Go to the main menu and select Cards > Search > Credit contracts.
Find the contract you want to modify and click on its contract number to access the credit contract details page.
On the Credit contract details page, click on the Instalment plan in the content menu.
You will see the list of the instalment plans. To access the details of the instalment plan, click on the ID number of the plan.
On the instalment plan details page, click the Change interest rate button to initiate the interest change.
In the Changes interest rate modal, enter the new interest rate for the instalment plan and click Submit.
A new schedule version for the instalment plan is calculated and activated.
You can access all schedule versions from the Schedule version dropdown on the Instalment Plan Details page.
Premature repayment means repaying an instalment plan before its scheduled end date. Before you can begin making premature repayments, you need to set up a few required configurations.
Complete the following configuration steps if you have enabled premature repayments for the instalment plan.
If you would like to apply the fee for premature repayment, you must define it as the INSTALMENT_PLAN_PREMATURE_REPAYMENT_FEE fee type in the credit contract price list.
Define receivables for premature repayments by following these steps to establish receivable formation and line rules for premature repayment.
The following receivable formation rules for premature repayment invoice of instalment plans need to be added:
INSTALMENT_PLAN_PRI
CARD.INSTALMENT_PLAN
Instalment plan principal.
INSTALMENT_PLAN_INT
CARD.CONTRACT_INTEREST
Instalment plan interest.
INSTALMENT_PLAN_PREMATURE_REPAYMENT_FEE
CARD.FEE_BOOKING
Instalment plan premature repayment fee.
The following line rules for premature repayment invoice of instalment plans are as follows:
INSTALMENT_PLAN_PRI
INSTALMENT_PLAN_INT
INSTALMENT_PLAN_PREMATURE_REPAYMENT_FEE
To perform a premature repayment:
Go to the main menu and select Cards > Search > Credit contracts.
Select or search for the contract where you want to perform a premature repayment.
Select Instalment plans from the left content menu.
Find the instalment plan to repay and click on it to access the instalment plan details.
Click Repayment.
Insert the amount for instalment plan repayment. Add details or apply fee if necessary.
Click Submit to perform a premature repayment.
To create an instalment plan, follow these steps:
Select Cards > Search > Credit contracts.
By default, you can see the list of existing contracts with different statuses. You can filter the list by entering search parameters.
Select the Contract number of the credit contract for which you want to create an instalment plan.
On the Credit contract page that opens, select Transactions from the content menu. The Card account transactions page opens.
Select the transaction for which you want to create an instalment plan. The Transaction details page opens.
Click Create instalment plan. Select the Instalment plan type from the drop-down list. When you select a plan, the details and the schedule are displayed. Note that you can see the instalment plan types created via the API endpoints.
When you have selected the instalment plan type you want to use, click Create instalment plan.
An instalment plan can have the statuses:
ACTIVE - when the scheduled repayments are to be paid in the future.
PAID - when all the scheduled repayments have been paid in full.
CLOSED - when the plan is closed prematurely.
The following screenshot shows the Instalment plans page for a credit contract:
To view the existing instalment plans,
click Instalment plans on the content menu of the credit contract.
Select an Instalment plan ID and the Instalment plan details page opens.
The following screenshot shows the Instalment plan details page for an active instalment plan:
To terminate the plan, click Terminate instalment plan.