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Revolving credit product – Segregation of balances

The Enfuce credit account product has several technical accounts that enable the segregation of balances. This, in turn, allows you to keep track of the age of overdue amounts and a variety of interest calculation models.

Accounts list in revolving credit

There are several technical accounts for a revolving credit product which each keep track of a specific amount. They are split according to two dimensions: ‘purpose’ and ‘age’.

Split by ‘purpose’

Info Center-spilt by purpose Enfuce

The technical accounts which are split according to source and purpose are:

  • Retail, which is used to register non-cash transactions (e.g. purchase, unique)
  • Cash, which is used to register cash transactions (e.g. cash, ATM)
  • Fees, which is used to register all fees (both card and account level)
  • Interest, where accrued revolving credit interest is posted
  • Overdue interest, where accrued overdue interest is posted
  • CH Current/Credits, which is used to register incoming payments and other credits.
Revolving credits

Split by ‘age’

Technical accounts are also split according to age. There are three main age stages:

  • Current, which represents the current cycle
  • Grace, which is the period from billing cycle closure to due date
  • Billed, which is the period after the due date.
  • Overdue, which is a parallel stage to billed but for the minimum to pay balances that are not paid by the due date

Note that the split by age only applies to the following purposes: retail, cash, fees, and interest (only grace, billed and overdue).

The movement of balances between technical accounts

The below illustration shows a basic flow of balances during two consecutive billing cycles.

 

Billing circle 1

Info Center-spilt by purpose Enfuce

Billing circle 2

Billing cycle 2-revolving credit

Technical account list

Technical account Description Reflected in balance type
Loan Retail Current Total balance of retail transactions during the current cycle. TOTAL_BALANCE
Loan Cash Current Total balance of cash transactions during the current cycle. TOTAL_BALANCE
Loan Fee Current Total balance of fee transactions during the current cycle. TOTAL_BALANCE
Loan Retail Grace Total balance of retail transactions not calculated to the minimum to pay during the grace period. TOTAL_BALANCE,
STMT_BALANCE
Loan Cash Grace Total balance of cash transactions not calculated to the minimum to pay during a grace period. TOTAL_BALANCE,
STMT_BALANCE
Loan Fee Grace Total balance of fee transactions not calculated to the minimum to pay during a grace period. TOTAL_BALANCE,
STMT_BALANCE
Loan Cash Grace The total balance of cash transactions not calculated to the minimum to pay during a grace period. TOTAL_BALANCE,
STMT_BALANCE
Loan Retail Billed Total balance of retail transactions not calculated to the minimum to pay after the initial due date. TOTAL_BALANCE,
STMT_BALANCE
Loan Cash Billed Total balance of cash transactions not calculated to the minimum to pay after the initial due date. TOTAL_BALANCE,
STMT_BALANCE
Loan Fee Billed Total balance of fee transactions not calculated to the minimum to pay after the initial due date. TOTAL_BALANCE,
STMT_BALANCE
Loan Interest Billed Total balance of revolving interest not calculated to the minimum to pay after the initial due date. TOTAL_BALANCE,
STMT_BALANCE
OVD Interest Billed Total balance of overdue interest not calculated to the minimum to pay after the initial due date. TOTAL_BALANCE,
STMT_BALANCE
MTP Retail Grace The minimum to-pay amount of the retail balance. TOTAL_BALANCE,
STMT_BALANCE
MTP Cash Grace The minimum to pay amount of the cash balance. TOTAL_BALANCE,
STMT_BALANCE
MTP Fee Grace The minimum to pay amount of the fee balance. TOTAL_BALANCE,
STMT_BALANCE
MTP OVD Int The minimum to pay amount of the overdue interest balance. TOTAL_BALANCE,
STMT_BALANCE
MTP Int The minimum to pay amount of the revolving interest balance. TOTAL_BALANCE,
STMT_BALANCE
MTP Retail Overdue The overdue minimum to pay amount of the retail balance. TOTAL_BALANCE,
STMT_BALANCE
MTP Cash Overdue The overdue minimum to pay amount of the cash balance. TOTAL_BALANCE,
STMT_BALANCE
MTP Fee Overdue The overdue minimum to pay amount of the fee balance. TOTAL_BALANCE,
STMT_BALANCE
MTP Int Overdue The overdue minimum to pay amount of the revolving interest balance. TOTAL_BALANCE,
STMT_BALANCE
MTP OVD Int Overdue The overdue minimum to pay amount of the overdue interest balance. TOTAL_BALANCE,
STMT_BALANCE
CH Current/Credits Incoming payments are posted to this account from where they are immediately transferred to decrease the balance according to payment priority. There will only be balance on this technical account if there is no debt. TOTAL_BALANCE
Shadow Due The overdue minimum to pay amount of the overdue interest balance. TOTAL_BALANCE,
STMT_BALANCE
MTP OVD Int Overdue The overdue minimum to pay amount of the overdue interest balance. TOTAL_BALANCE,
STMT_BALANCE
Shadow Due The shadow accounts are not actual financial accounts. They are used to keep track of balance ages in the overdue technical accounts. An example:

50€ of overdue is moved to MTP Retail Overdue on the 16th of January. An additional 60€ is moved there on the 16th of February. The total balance of the MTP Retail Overdue is 110€. However, the 50€ has been there for one month longer.
This situation on the 17th of February would be reflected in the shadow accounts as follows:
Shadow OVD 30 (balances that are 1-30 day overdue): 60€
Shadow OVD 60 (balances that are 31-60 overdue): 50€

DUE, TOTAL_DUE
Shadow OVD 30 OVD_01, PAST_DUE, TOTAL_DUE
Shadow OVD 60 OVD_02, PAST_DUE, TOTAL_DUE
Shadow OVD 90 OVD_03, PAST_DUE, TOTAL_DUE
Shadow OVD 120 OVD_04, PAST_DUE, TOTAL_DUE
Shadow OVD 150 OVD_05, PAST_DUE, TOTAL_DUE
Shadow OVD 180 OVD_06, PAST_DUE, TOTAL_DUE