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 accountDescriptionReflected in balance type
Loan Retail CurrentTotal balance of retail transactions during the current cycle.TOTAL_BALANCE
Loan Cash CurrentTotal balance of cash transactions during the current cycle.TOTAL_BALANCE
Loan Fee CurrentTotal balance of fee transactions during the current cycle.TOTAL_BALANCE
Loan Retail GraceTotal balance of retail transactions not calculated to the minimum to pay during the grace period.TOTAL_BALANCE,
STMT_BALANCE
Loan Cash GraceTotal balance of cash transactions not calculated to the minimum to pay during a grace period.TOTAL_BALANCE,
STMT_BALANCE
Loan Fee GraceTotal balance of fee transactions not calculated to the minimum to pay during a grace period.TOTAL_BALANCE,
STMT_BALANCE
Loan Cash GraceThe total balance of cash transactions not calculated to the minimum to pay during a grace period.TOTAL_BALANCE,
STMT_BALANCE
Loan Retail BilledTotal balance of retail transactions not calculated to the minimum to pay after the initial due date.TOTAL_BALANCE,
STMT_BALANCE
Loan Cash BilledTotal balance of cash transactions not calculated to the minimum to pay after the initial due date.TOTAL_BALANCE,
STMT_BALANCE
Loan Fee BilledTotal balance of fee transactions not calculated to the minimum to pay after the initial due date.TOTAL_BALANCE,
STMT_BALANCE
Loan Interest BilledTotal balance of revolving interest not calculated to the minimum to pay after the initial due date.TOTAL_BALANCE,
STMT_BALANCE
OVD Interest BilledTotal balance of overdue interest not calculated to the minimum to pay after the initial due date.TOTAL_BALANCE,
STMT_BALANCE
MTP Retail GraceThe minimum to-pay amount of the retail balance.TOTAL_BALANCE,
STMT_BALANCE
MTP Cash GraceThe minimum to pay amount of the cash balance.TOTAL_BALANCE,
STMT_BALANCE
MTP Fee GraceThe minimum to pay amount of the fee balance.TOTAL_BALANCE,
STMT_BALANCE
MTP OVD IntThe minimum to pay amount of the overdue interest balance.TOTAL_BALANCE,
STMT_BALANCE
MTP IntThe minimum to pay amount of the revolving interest balance.TOTAL_BALANCE,
STMT_BALANCE
MTP Retail OverdueThe overdue minimum to pay amount of the retail balance.TOTAL_BALANCE,
STMT_BALANCE
MTP Cash OverdueThe overdue minimum to pay amount of the cash balance.TOTAL_BALANCE,
STMT_BALANCE
MTP Fee OverdueThe overdue minimum to pay amount of the fee balance.TOTAL_BALANCE,
STMT_BALANCE
MTP Int OverdueThe overdue minimum to pay amount of the revolving interest balance.TOTAL_BALANCE,
STMT_BALANCE
MTP OVD Int OverdueThe overdue minimum to pay amount of the overdue interest balance.TOTAL_BALANCE,
STMT_BALANCE
CH Current/CreditsIncoming 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 DueThe overdue minimum to pay amount of the overdue interest balance.TOTAL_BALANCE,
STMT_BALANCE
MTP OVD Int OverdueThe overdue minimum to pay amount of the overdue interest balance.TOTAL_BALANCE,
STMT_BALANCE
Shadow DueThe 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 30OVD_01, PAST_DUE, TOTAL_DUE
Shadow OVD 60OVD_02, PAST_DUE, TOTAL_DUE
Shadow OVD 90OVD_03, PAST_DUE, TOTAL_DUE
Shadow OVD 120OVD_04, PAST_DUE, TOTAL_DUE
Shadow OVD 150OVD_05, PAST_DUE, TOTAL_DUE
Shadow OVD 180OVD_06, PAST_DUE, TOTAL_DUE