Consumer Payment Card News

Installment Card

Before long you’ll be able to use your MasterCard for both revolving credit and installment credit. MasterCard this week launched the “MasterCard Installment Card”, a new, patented program to help cardholders pay for larger purchases. The new installment program will be offered as an option by MasterCard issuers in the USA. Under the new program, MasterCard issuers will set the overall credit limit, installment terms and interest rate, and have the ability to offer cardholders two card options: “The Stand-Alone Installment Card Option” and the “Add-On Installment Card Option.” With the stand-alone version, cardholders open a new installment card designated exclusively for larger purchases. A single credit line is determined by the member financial institution. The add-on version enables members to instantly expand their MasterCard functionality. Purchases are handled through a combination of revolving and fixed payment options. Fixed payment transactions, for example, would be automatically triggered for all purchases over a preset amount. All installment transactions would have a fixed payment schedule. Both the revolving and the fixed payment options would be set by the issuing financial institution and detailed in an account agreement and on the account statement.

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