In-House Credit Cards – EOM Processing

Lending Lending In-House Credit Cards - EOM Processing

1. Introduction

This document provides technical guidance on the End-of-Month (EOM) processing for In-House Credit Cards within the FLEX system. This process is critical for managing credit card billing cycles, posting fees and interest, and generating statements.

2. Credit Card Control Parameters

Credit Card Control Parameters govern the billing cycle and statement settings for in-house credit cards.

2.1. Accessing Control Parameters

Control Parameters can be found under Cards, Credit Cards, and Credit Card Configuration in the FLEX Main Menu:

  1. Navigate to Cards.
  2. Expand Configuration.
  3. Expand Credit Cards.
  4. Expand Credit Card Configuration.
  5. Select Control Parameters.

2.2. Custom Statement Messages

Credit unions can maintain custom messages to be added to statements for promotions, delinquency messages, or loan-type specific information. These messages should be maintained prior to running the Credit Card Billing Cycle.

  • Default Messages Tab: Enter up to 6 lines for Delinquency Messages, Grace Messages, and/or No Grace Messages.
  • Type Messages Tab: Create messages specific to a loan type.
    1. Click Add to add a new type.
    2. Highlight and click Edit or Delete to modify or remove an existing type.
    3. Enter up to 6 lines for the statement message for the selected type.

2.3. Secondary Statements Tab

  • This tab is used for configuring additional statement runs, if applicable.
    • Sequence: Identifies the order of secondary statements.
    • Description: Describes the secondary statement (e.g., “Print Copy,” “DocMan Copy”).

2.4. Notices Tab

  • All current notices are listed by default.
  • Highlight and click Edit to customize a notice.
  • Customizable heading and message boxes are displayed. Default headings and messages are used if not customized.
  • Notices should be maintained prior to running the Credit Card Billing Cycle.

2.5. Images Tab

  • This option allows the credit union to specify if image files will be appended to PDF documents.

2.6. Configuration Tab

This tab contains extensive settings for billing cycle options and statement printing options.

2.6.1. Billing Cycle Options

  • Last Billing Date: Displays the date the last billing cycle was processed.
  • Max Days Delinquent For Processing/Statements: Maximum number of days a loan may be delinquent and still incur fees during the billing cycle or generate a statement.
  • Discontinue Overlimit Fee After XX consecutive months without new debits: Maximum number of consecutive months an over-limit fee will be collected without new advances. (Refers to Regulation Z Section 226.56).
  • Minimum Days Loan Open Before Variable: Number of days a credit card loan must be open before a variable rate loan adjustment will occur.
  • Purchase Return End-Of-Period Crossover Days: Number of days after the end of the period in which purchase returns will be considered to have occurred before the end of the period. If a return is within this period, payments required to avoid finance charges will be reduced.
  • Maximum Fees Charged in First Year: Maximum portion of the credit limit for which fees can be charged in the first year. Excess fees are refunded in the subsequent billing cycle.
  • Refund GL: Specifies the refund General Ledger (GL) account for excess fees charged in the first year.
  • Consider Account Holder Bankruptcy Setting: If checked, the billing cycle treats the account holder’s credit card loans as bankrupt, even if individual loans are not flagged. If unchecked, only flagged loans are treated as bankrupt.
  • Exclude Unpaid Interest From Average Balance: Indicates whether unpaid interest is excluded from the average balance calculation during the billing cycle.
  • Post Late Fees During Billing Cycle:
    • Y: Late fees are collected during the billing cycle.
    • N: Late fees are not collected during the billing cycle but are manually posted via batch fee posting.
  • Grace by Entire Loan:
    • If checked, the grace period applies to the entire loan. If any category is delinquent, all categories are charged interest.
    • If unchecked, each category is independent.
  • Over Limit Fee is Over Limit any time in Cycle: Indicates if an over-limit fee is collected if the balance exceeds the credit limit at any point in the billing cycle, or only if over-limit at the credit card End of Month.
  • Include Inactive Accounts in Cycle: Indicates if accounts with no activity and zero balance will still receive a statement during the billing cycle.

2.6.2. Credit Card Loan Entry Options

  • CD Suffix Class: Indicates the type of card record created when using Credit Card Loan Setup. Configured by FLEX.
  • Forms Prompt: Indicates whether a prompt to print forms will be displayed after credit card creation.

2.6.3. General Ledger Accounts

  • Over Limit Fee GL: Displays the GL account for over-limit fees.
  • Cash Advance Fee GL: Displays the GL account for cash advance fees.

2.6.4. Statement Printing Options

  • CASS Certification: Indicates whether statements are pre-sorted into CASS certified and non-certified groups. Requires the purchasable CASS program module.
  • Print Mail Code: Indicates whether credit union defined mail codes print on statements.
  • Export Statements to DocMan: Indicates if a copy of statements are generated in Document Manager.
  • Export Statements to eMail: Indicates if an email is triggered for eStatement accounts.
  • Include Bad Address Members: Indicates if statements are generated for loans with bad statement addresses.
  • Prevent Barcode From Printing: Indicates whether to prevent the ZIP code barcode from printing on the form overlay.
  • Print Form Overlay: Indicates whether statement form information is included. Typically checked if FLEX generates statements; usually unchecked if a third party prints.
  • Print VISA Logo: Indicates whether the VISA logo is printed. Do not include if not printing the form overlay.
  • Print Tran Highlighting Lines: Indicates whether transaction highlighting lines are printed on the form overlay.
  • Statement Sequence Code: Order in which credit card statements will be printed.
  • Due Date Print Code: How the payment due date will print on delinquent statements (e.g., “THIS LOAN IS $XXX.XX DELINQUENT“).
  • X/Y Offsets Logo 1/2: Adjusts the position of VISA logos on the statement. (1 inch 300 points).
  • Detach Message X/Y Positions: Adjusts the position of the “Detach Top Portion and Return With Your Payment” message on the form overlay.
  • Account Number Mask: Masks the account number on the printed statement (e.g., X for replacement character).
  • XML Exit Program: For FLEX use only.
  • Include Card Numbers on Statement: If checked, up to ten non-expired card numbers associated with the loan suffix will be included.
  • Card Number Mask: Masks the card number on the printed statement (e.g., X for replacement, ~ for blank).
  • Activate Corporate Grouping: Indicates whether corporate grouping of statements is processed.
  • Print DFI Warning Message: Indicates whether the mandated DFI (Department of Financial Institutions) warning message prints.
  • Print & (Ampersand) Character By Name: Indicates whether the ampersand character (&) prints to the left of member names.
  • Print Tax Name: Indicates whether the tax name of the account prints.
  • Print Joint Owner Name: Indicates whether the name of the first joint owner prints below the member’s name.
  • Adjust Payment Description: Indicates if payments show as ‘Payment-Thank You’ instead of default descriptions (LOAN PAYMENT, PAYMENT-NO INT, LOAN CREDIT).
  • Over Limit Fee Opted In Notice: Indicates if a notice of consumer’s affirmative consent for an over-limit fee prints on the first statement after the fee code changes to ‘Y’.
  • Payment Disclosure Boxes: Indicates if lined boxes are generated around the payment disclosure.
  • Charge-Offs Receive Statement: Indicates whether statements are generated for charged-off credit card loans.

3. Credit Card Billing Cycle

The Credit Card Billing Cycle must be run monthly, prior to running End of Day, and after all credit card transactions for the month are complete. This cycle posts fees, interest, and creates statement files.

3.1. Running the Billing Cycle

  • Statement Period (From Date/To Date): Enter the date range for the billing cycle.
    • Backdating: Can only be done if no credit card transactions have posted between the current date and the backdate. The system will warn if transactions have occurred.
    • Forward Dating: FLEX does NOT recommend forward dating. Transactions between the current date and the forward date will not be calculated until the next cycle, affecting interest calculations.
  • Update Files:
    • N: Generates worksheets for review. FLEX recommends running a worksheet first to catch errors before actual statements are generated.
    • Y: Actually runs the Credit Card Billing Cycle, posts fees and interest, and generates statements. Once posted, the billing cycle cannot be reversed or re-run.

3.2. Functions Performed by the Billing Cycle

The Credit Card Billing Cycle performs the following functions:

  1. Annual Fee Posting.
  2. Over-Limit Fee Posting.
  3. Calculation of Month-To-Date (MTD) Loan Activity.
  4. Finance Charge (interest) Posting.
  5. Calculation of Minimum Required Payment.
  6. Loan Due Date Advance (for non-delinquent loans).
  7. Statement Printing.

3.3. Progress and Reports

  • A task bar will appear showing the progress of the billing cycle.
  • Worksheet Reports:
    • Fee Detail Worksheet
    • Fee Summary Worksheet
    • Late Fee Detail Worksheet
    • Category Expiration Worksheet
    • Month to Date Average Daily Balance Worksheet
    • Negative Categories Worksheet
    • Credit Card Statements Worksheet (CARDSTMTW – not valid statements, for verification only).
  • Posting Reports:
    • Fee Detail
    • Fee Summary
    • Late Fee Detail
    • Category Expiration
    • Month to Date Average Daily Balance
    • Negative Categories
    • Credit Card Statements
  • Error Messages: If errors occur (e.g., loan balances not equaling category balances), a message “Processing will be cancelled. Loans exist that have balances that do not equal the category balances. Please view the generated reports” will display.
    • Two reports, CC5002P- Unbalanced Credit Card Loans and CC5003P- Unallocated Credit Card Loans, will generate. These accounts MUST be corrected before the cycle can be run. Contact FLEX Loan Support for assistance.
  • Warning Messages: A warning message “There are loans that exist with a negative balance” may appear. This generates a report of these accounts for review. No action is required for the cycle to run, but negative amounts can be advanced to another suffix if credit union procedure dictates.

4. Confidentiality Notice

This document is published by Computer Marketing Corporation/FLEX and is intended solely for its contracted clients. It may contain information that is privileged, confidential, or otherwise protected from disclosure. Dissemination, distribution, or copying of this document and any accompanying attached information by someone other than the intended recipient(s), or an employee or agent acting on behalf of the intended recipient, is strictly prohibited.