Closing and due date

Define the closing and due dates for your product that best fit your business.

Billing cycle

A billing cycle is a specific period of time in which all transactions made with a credit card, as well as other charges and payments associated with the account, are accumulated. During this period, all purchases, cash withdrawals, interests, fees, and other movements are recorded on the cardholder's account.

Cut-off Date

The cut-off, closing, or billing date of a credit card is the specific day of the month when the billing cycle ends. During the billing cycle, all transactions made and presented are recorded and accumulated to generate the statement for that period.

Due Date

The due date or payment date for the billing cycle of a credit card is the final deadline to make the payment without incurring late fees.

You will then need to set a due date for each customer in the credit line. You can modify the due date until the line changes to ACTIVE status.

If the due date falls on a Saturday, Sunday or holiday, it will automatically move to the next business day.

Edit Due Date

You can edit the due date of each credit line via API or from the Dashboard. Keep in mind:

• You can choose among the dates defined at the product level.
• The change will apply to the next billing cycle, so the current cycle’s due date will not change.
• The defined closing days will remain the same. That is, the number of days between closing and due date won’t change.
• Once you request a due date change, you won’t be able to request another for 90 days.
• The next billing cycle must be longer than 15 days and shorter than 55 days.
• If you bring the due date forward, the next cycle will be shorter, but never less than 15 days.
• If you delay the due date, the next cycle will be longer, but never more than 55 days.
• From the following cycle onward, the duration will return to normal.
• If your customer has installment purchases, their payments cannot skip billing cycles. We also won’t charge two installments from the same plan in a single cycle.
• You cannot change the due date if your customer is in default.

Let’s look at an example:

These are the current period details for a credit line:

Case 1:

On 08/05/2024, you want to change the due date from the 5th to the 10th.

Since the current cycle won’t be modified, the statement will still close on 08/30 and the due date will remain 09/05.

The change will apply in the next billing cycle, provided the minimum period of 15 days is met.

Case 2:

On 08/05/2024, you want to change the due date from the 5th to the 25th.

As with the previous case, the current cycle won’t change, and the statement will still close on 08/30 with the due date remaining 09/05.

The change will apply in the next billing cycle, provided the minimum period of 15 days is met.

First closing date

To offer a better experience, when you create your product, you can define the number of days that should exist between the activation of the line of credit and the first closing date. This is done by configuring the minimum_days_until_first_closing_date field.

This way, if there are fewer than a certain number of days between the activation date and the first closing date, the first closing will move to the following month.

Let's see an example:

For this user, the closing date should be May 20th. However, since the configured days until the first closing are 10, and there are only 5 days between May 15th and May 20th, the first closing date for this user will be June 20th. This date corresponds to the next billing period.