An installment transaction is when, in cases where the card and the POS acquiring bank are the same, the transaction amount is divided into a set number of installments and reflected on the cardholder's statement in installment amounts.
For example; when we make a 5-installment transaction of 1000 TL, starting from the card's first issued statement, 5 statement periods will each reflect an amount of 200 TL on the card.
There are a few points to pay attention to here:
- Even though only 200 TL is reflected per statement period, the card's available limit is reduced by 1000 TL at the moment the transaction is made.
- When an installment transaction is refunded, the refund amount is not immediately
reflected on the card.
It is refunded to the credit card in installments (spread over as many months as the number of installments already paid).
Merchants generally add a certain amount on top of the transaction amount for installment transactions. For installment transactions, it is useful to check the amount that will actually be charged to the card.
Refunds and cancellations for installment transactions
When an installment transaction is refunded, the refund amount can be distributed across the remaining installments or offset against the first installments. The approach depends on the bank.
What matters for the cardholder is that the entire limit is blocked at the moment of the transaction. As the number of installments increases, the monthly burden decreases, but the total limit usage does not change.
For some cards, the number of installments or the deferred-payment markup depends on the campaign; this information is shown clearly on the statement.
