Multiple Grace Periods on a Single Card

<Enhancements to existing products>

Issuers can now offer their customers a credit card with several simultaneous grace periods. A popular use case is when an issuer refinances a customer’s loan from another lender with more favorable terms (such as a reduced interest rate and longer grace period) and links the new loan to the cardholder’s existing credit card.

This new feature allows issuers to earn more interest revenue and saves them the cost of issuing a new plastic card when refinancing loans.

Cardholders can conveniently use their existing card for current card transactions and also to repay the refinanced loan. Way4 can manage grace periods separately for each type of debt on the card (retail operations, cash, transfers, or refinanced loan). In this way, issuers can set different grace periods with their own interest rates and due dates for each type of card transaction or refinanced loan.