How are Finance Fees Calculated?

Step 1

Calculate the Customer Balance

The system calculates the Customer Responsible Balance prior to the Billing Period for which the Customer received notification of the outstanding charge. The notification is the date an Invoice was first printed showing the amount the Customer was responsible for.

Step 2

Remove Finance Fees from Customer Balance

The system will not apply Finance Fees to Finance Fees, so we remove any Finance Fees up to the Billing Period.

Step 3

Remove Customers who have made payments

We assume that customers who have made a payment anytime during, or after the Billing Period are doing so based on a plan you have agreed to, so we do not charge them a Finance Fee.

Step 4

Remove Customers with a Customer Balance less than the Minimum Balance.

If the Customer has a Customer Balance which is at least the Minimum Balance, the Customer should get a Finance Fee.

Step 5

Calculate the Finance Fee

The Customer Balance is multiplied by the Finance Fee Percent to calculate the Finance Fee.

Step 6

Round up to the Minimum Finance Fee if necessary.

If the calculated Finance Fee is less than the Minimum Finance Fee, set the Finance Fee to the Minimum.