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’
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.
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
Billing circle 2
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. |
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 |