Statement/Billing Cycles

The credit platform tracks spend, fees and interest across statement or billing cycles.
The following diagram illustrates some key features of the revolving credit statement processing:

• Spend (referred to as principal in the system) is tracked across the cycle with accrued interest calculated on a daily basis
• At the end of the cycle a statement is released, with total debt amount and the minimum repayment due
  The customer has until Repayment Due Date to repay the minimum amount, but can also repay up to the full statement amount
• The spend (principal) in the first cycle and the accrued interest is carried forward to the next cycle, referred to now as ‘previous’ principal and previous accrued interest. Daily accrued interest continues to be calculated on the previous principal, referred to as ‘previous calculated interest’
• If the full statement amount is repaid by the repayment due date, no interest is charged
• If repayment is less than full statement, then interest is posted to the account both previous accrued interest from the first cycle and the previous calculated interest. Interest is posted at the end of the cycle
• Any previous principal amount and posted interest that has not been repaid, is carried forward to the next statement cycle, now referred to as outstanding principal and outstanding interest. Accrued interest is calculated on any outstanding principal that has not been repaid.
• In any statement cycle, there is likely to be principal and interest calculations for current, previous and outstanding amounts.