Credit Plataform
There were over 38 million Visa credit cards in circulation in the Brazilian market at the end of 2006. Altogether, they represent a sales potential of approximately R$100 billion/year. These cards are issued by a bank or a card issuing company and their credit limit depends on each user's profile, whether they are an individual or a corporate client.
Cardholders can buy on credit and even finance their purchases - the monthly payment amounts are added by the card's issuer to their credit card bill on a previously agreed date. Cardholders can also decide whether they want to pay their balance in full or make a partial payment-which can be any amount between the full balance and the mandatory minimum payment-and refinance the outstanding balance with their financial institution. VisaNet Brasil offers the following payment solutions to merchants who accept Visa credit cards:
Crédito à vista (immediate payment)
This is the most commonly recognized type of credit card sale. Merchants receive the total sales amount within approximately 30 days (depending on the payment date established with VisaNet Brasil), minus a previously negotiated fee. Cardholders also pay their card issuer approximately 30 days after the purchase, depending on the card bill due date.
Parcelado Administradora (Card Issuer Financing)
With this type of Visa credit card sale, purchases can be financed and paid in monthly installments. This financing is offered by the card issuer. Cardholders can pay for their purchases in monthly installments, with interest included, which in turn is repaid to the card issuer. For merchants and VisaNet Brasil these sales are just like a regular credit card sale. Merchants receive the total sales amount within approximately 30 days, depending on the payment date established with VisaNet Brasil, minus a previously negotiated fee.
The minimum and maximum number of monthly installments and the minimum amount of each installment are determined by the card issuer. As a rule, card issuers can allow from 2 up to 24 monthly installments.
All merchants are allowed to accept the Parcelado Administradora payment option, except bingo gaming halls and gas stations. Cardholder's ability to use this type of financing, as well as their credit limit, is determined by their card issuer.
Parcelado Loja (interest-free installments)
Here, customers can pay for their purchases in interest-free monthly installments. This financing is offered by the merchant. Merchants can contract the Parcelado Loja payment solution with VisaNet Brasil and start financing their customer's purchases as a way of attracting more customers and gaining their loyalty. Since the value of each installment is always fixed, Parcelado Loja has become a proven tool for leveraging sales.
VisaNet Brasil establishes a minimum value for each installment, but merchants can establish their own minimum value, as long as it is greater than VisaNet Brasil's. Purchases can be financed in up to six monthly installments. In the case of airlines, ocean liners and travel agencies, payments can be extended to up to 12 monthly installments. The funds from each installment are deposited each month into the merchant's account.
Only Visa credit cards issued in Brazil can be used for Parcelado Administradora and Parcelado Loja operations.