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EMI Settlement Models

Types of Settlement Models​

Standard EMI Settlement​

  • In this case, the customer card will be charged for the full amount which will be later converted to EMI.
  • The authorization amount will be original amount. Loan will be calculated on the original amount.
  • The entire captured amount which is equal to original product amount minus the TDR is settled on T+1. There is no other party involved in the settlement.

Calculation

Original Amount = 10000
Auth Amount = 10000
Captured Amount = 10000
Settlement Amount = 10000

Brand EMI Offer Settlement (Instant Cashback offer)​

  • The customer will be charged original amount - cashback on the card. The same amount will be used to convert to EMI.
  • The authorized amount minus the TDR is settled on T+1.
  • Pine Labs will recover the brand/bank funded portion from the brand within 90 days and settle it to the merchant.

Calculation

Original Amount = 10000
Instant Cashback = 200
Auth Amount = 9800
Captured Amount = 9800
Settlement Amount to Merchant = 9800
Settlement to Merchant within 90 days = 200

Instant Cashback T+1 Program​

  • The customer will pay Original Amount - Instant Cashback.
  • The original product amount minus the TDR is settled on T+1.
  • Pine Labs will recover the brand/bank funded portion from the brand within 90 days.

Calculation

Original Amount = 10000
Cashback = 200
Auth Amount = 9800
Captured Amount = 9800
Settlement Amount to Merchant = 9800
Settlement to Merchant within 90 days = 200

Instant Subvention T+1 Program​

  • The customer will pay Original Amount + Interest - Subvention Discount.
  • The original product amount minus the TDR is settled on T+1.
  • Pine Labs will recover the brand/bank funded portion from the brand within 90 days.

Calculation

Original Amount = 10000
Cashback = 200
Auth Amount = 9800
Captured Amount = 9800
Settlement Amount to Merchant = 9800
Settlement to Merchant within 90 days = 200