Loan Category Configuration: Credit Cards

Description

Credit Card Cycle Control

The day of the month on which the billing cycle ends. Currently must be set to 31 for credit card loans, meaning the billing cycle ends on the last day of the month. To make a change to this date, click Unlock Date Fields.

Leave unchecked unless scorecard rewards transmissions are used and rewards should be printed on credit card statements. Contact a CU*Answers representative for assistance with this feature.

Use the lookup button to select the appropriate cash back rewards program for the loan category. These programs are configured in Tool #1550 Credit Card Cash Back Program Config, and individual members are enrolled via Tool #20 Update Account Information.

For future use; this flag is currently ignored.

This field represents the number of days a member has to pay the previous statement balance before finance charges will be assessed. Sometimes referred to as a grace period. To make a change to this date, click Unlock Date Fields.

• BE CAREFUL: In order to avoid problems once your credit card program is underway, this value can be set only when you originally create the loan category; it cannot be changed after you have used Enter to proceed to the next screen.

The date on which the last statement was generated. To make a change to this date, click Unlock Date Fields.

The date on which the next statement will be printed. To make a change to this date, click Unlock Date Fields.

The due date that was printed on the last statement. To make a change to this date, click Unlock Date Fields.

The next date on which statements will be generated (should correspond to the day in the Approximate monthly billing date field above). To make a change to this date, click Unlock Date Fields.

Payment Calculation

Choose which type of credit card transaction activity should be subject to transaction charges:

All Activity (A) - Refers to transactions that originate from the credit union channel as well as transactions that originate through your vendor. Includes transactions from the following sources:

• Your vendor

• Teller

• Online Banking

• Phone Operator

• Audio Response Banking

• Transfers (Tool #516: Member Transfers)

Switched Activity (S) - Refers to transactions that originate through the vendor “switch” only, such as point of sale purchases.

Only ATM Inquiry transactions originating through ATM machines are not subject to transaction charges.

Cash advance fees are charged for courtesy checks processed via ACH or Check Processing when this field is set to "All Activity."  In these cases cash advance fees will be charged when credit card courtesy checks are cleared through either the ACH or draft processing channels.  The member will see this charge as if they took a cash advance.

Cash advance fees are not charged for scheduled Account to Account Transfers (A2AAFT).

Check this box if you want the payment amount always to be calculated as a whole dollar amount. (For example, if the payment was calculated as $35.83, the system would record a payment amount of $36.00 instead.) If left unchecked, the payment will be based on the calculated amount to the nearest penny.

Credit Card loan products default to Percent (P) method. The system calculates a payment amount based on the average daily balance on the loan, using the percentage entered into the Percent method field below.

Enter the percentage to be used when calculating the payment amount. Remember that this is used by all cards under this credit card program.

• For credit card and line of credit loans: this % should be considered when entering a percent in the % to use for calculating payment x.xxx (for CC and LOC) field in the loan product configuration. Learn more here

• I am setting up a new line of credit product and am using the '% to use for calculating payment' field. What should I consider when using this field to calculate payments?

• When creating an application in the CU*BASE LOS and adding insurance/debt protection, I am seeing my maturity and review dates are not as expected. What might be causing this to occur?

Use this field to set the lowest minimum payment amount that should be printed on a member’s statement (assuming there is a balance on the account).

When statements are generated, the system will use the greater of either the system-calculated minimum payment or this amount as the new required minimum payment.

• If the loan balance is less than this amount, the payment will be the actual balance on the credit card loan.

Daily Rate

Use this to define to how many decimal digits the daily rate should be calculated and displayed on the statement. The number of decimal places is also called the precision factor.

• Be sure to verify that the number entered in this field complies with your disclosure.

Check this flag to round the daily rate up to the specified number of decimal places.

• For example, if the # of decimal places field was set to 5 and this flag was checked, the number 0.0017654637 would be .00177 when rounded up.

Overpayment Limit

Use this field to define the maximum percentage a member can overpay on this credit card (process type V) loan category. The overpayment limit amount defined affects only non-scheduled, member-initiated transfers via Online Banking or ARU.

• A limit of 0% will not allow any overpayment, whereas a limit of 100% will allow any amount of overpayment. (Defaults to 100%).