BMO PaySmart^TM Credit Card Installment Plan Terms and Conditions B M O PaySmart Trademark Credit Card Installment Plan Terms and Conditions

What is a PaySmart installment plan?

Installment plans give primary cardholders the ability to repay eligible purchase amounts in smaller monthly payments over a defined repayment schedule. Installment plans are subject to these terms and conditions:

• Installment plans are either fee or interest-based.
• Applicable fees or interest and the repayment period will be presented to you when you create your plan.
• Purchases or balances that you turn into installment plans count towards your available credit limit.
• Installment plans are not a special rate offer. In certain cases, we may provide you with special installment plan offers that have different fees or interest rates.

If applicable, your plan’s monthly fee is comparable to the interest you might have paid if you carried this balance on your credit card for the same length of time as your plan.

If you set up an installment plan, you’ll be bound to these terms.

You’re eligible for an installment plan if:

• You are the primary cardholder of a personal credit card account in good standing, as defined in your Cardholder Agreement. Note: transactions made by secondary cardholders are still eligible for installment plans.
• Your installment plan amount is at least $100 in Canadian dollars (including taxes). We may designate a different amount from time to time, but we’ll advise you if we do so.
• Your current purchase balance (less refunds, payments and amounts converted to installment plans) since your last statement must be greater or equal to the amount you are trying to convert to an installment plan.
• You have recent eligible transactions on your account, meaning that they have been posted to your account but have not yet appeared on your latest credit card statement.
• You’re registered for BMO Online Banking and have an email address saved with us.

You’re not eligible for an installment plan if:

• Your personal credit card is a BMO Prepaid Mastercard or Diners Club Professional card.
• You're participating in a BMO promotion that impacts the payments or rates on your account (such as financial relief programs)
• You’re trying to convert a transaction that was previously on an installment plan, a cash-like transaction, a fee or interest charge, or a purchase made with an ineligible merchant category.

How your installment plan works

Repayment

Installment plans have a fixed repayment schedule of monthly payments over a set period of time. Each plan includes a monthly fee or interest that’s disclosed at the time you create your plan and is applied to your monthly credit card statement. Your plan’s monthly payment will be added to the minimum payment due on your credit card each month for the length of your plan. If you pay the minimum payment or balance by the due date as shown on your credit card statement, you'll also be making your monthly Installment Plan payment.

Fee

If you have a fee-based installment plan, your monthly payment is calculated by taking the monthly principal amount (the original amount divided by the number of payment months) and adding the monthly fee.

Interest

If you have an interest-based installment plan, your monthly payment (except for the first payment) is comprised of your installment plan principal and interest. There’s no interest on your first monthly payment.

This is how the monthly interest amount is calculated:

1. First, we determine your installment plan principal average daily balance by adding the interest- bearing amount you owe each day and dividing that total by the number of days in the statement period.
2. Your daily interest rate is determined by dividing the annual interest rate by the number of days in a year.
3. Your interest charge is calculated by multiplying the average daily balance by the daily interest rate by the number of days in a statement period.

The interest charged can vary based on when you make your payment. Your final monthly payment amount may also vary slightly.
We will not charge interest on an eligible transaction that has been converted to an installment plan during that statement period if you pay your total balance by the statement’s due date as noted in the Important Information about BMO Credit Cards available at bmo.com/rates-fees

Maximum number

You can have up to 15 installment plans at one time.

How payments to your plan work

Your plan’s monthly payments will be added to the minimum payment on your credit card each month.

When you make a payment to your credit card, we use the money first to pay off your minimum payment that appears on your monthly statement. We apply that payment to the following items in this order:

1. Total monthly installment plan payments due (which may include any installment plan fees or interest);
2. Interest that appears on your account statement;
3. Fees that appear on your account statement including, but not limited to, annual card fees, and cash advance fees;
4. Credit card balance insurance premiums that appear on your account statement;
5. Transactions that appear on your account statement;
6. Fees which have not yet appeared on your account statement; and
7. Transactions which have not yet appeared on your account statement

Your payment will be applied to balances within each of the above categories starting with the lowest interest rate item(s) within the category and continuing to the highest interest rate item(s) within the category.

Paying more than your minimum

If you pay more than the minimum payment due, we will apply that extra amount to the remaining balance on your account statement in this way:

1. All items that have the same interest rate will be placed into the same category;
2. We’ll apply your extra payment amount to the different interest rate categories in the proportion that the amount of each category represents the remaining balance.

For example, if your purchases represent 60% of your remaining balance and your cash advances represent 40% of your remaining balance, we’ll apply 60% of your extra payment amount towards your purchases and 40% of this extra payment amount towards cash advances.

If you pay more than your balance due on your account statement, the extra payment amount will be applied to transactions that have not yet appeared on your monthly statement, using the same payment method described above. After that, the extra payment amount will be applied to any installment plans on your account in the order that they’ll expire.

Returns and chargebacks

In case of returns and chargebacks, credits will be applied according to the payment method described above. If you return a purchase that is on an installment plan, your plan may not be cancelled. Credits may be applied to the installment plan if there are no other charges on your account.

Cancelling your installment plan

You can choose to cancel your plan at any time using BMO Online Banking or the BMO app. Once a plan has been cancelled, the original transaction is no longer eligible for installments.

• If you choose to cancel your plan any remaining balance will be subject to your credit card’s standard interest rate as noted in the Important Information about BMO Credit Cards available at bmo.com/rates-fees.
• If your credit card account is closed, your installment plan(s) will be cancelled, and any remaining balance will be subject to your credit card’s standard interest rate as noted in the Important Information about BMO Credit Cards available at bmo.com/rates-fees.
• If your interest-bearing installment plan is cancelled after the first payment due date, you will be charged installment plan monthly interest for every day the plan was active during the statement period.
• If you cancel your plan before your first payment due date, you will not be charged installment plan monthly interest.
• You will not be charged any cancellation fees, or any unbilled installment plan monthly fees (if applicable).

How we can cancel your plan

• We may cancel your plan(s) at any time if your account is no longer in good standing as defined in your Cardholder Agreement. If we cancel your plan, any remaining balances will be subject to your credit card’s standard interest rate as noted in the Important Information about BMO Credit Cards available at bmo.com/rates-fees.
• If you do not make your minimum payment by the payment due date and have not paid it by the date that we prepare your next statement, we will cancel your installment plan(s). Your remaining balances will be subject to your credit card’s standard interest rate as of the cancellation date as noted in the Important Information about BMO Credit Cards available at bmo.com/rates-fees.
• Product transfers into ineligible products will also automatically cancel your installment plan(s) and any remaining balances will be subject to your credit card’s standard interest rate as noted in the Important Information about BMO Credit Cards available at bmo.com/rates-fees.
• If you have any fee-based plans and move to Quebec, we will cancel your plans and your remaining balance will be subject to your credit card’s standard interest rate as of the cancellation date as noted in the Important Information about BMO Credit Cards available at bmo.com/rates-fees. You will be able to set up interest-based installment plans in Quebec.

Receiving digital notifications

By setting up an installment plan, you are providing express consent that we may provide you with electronic notices regarding your installment plan.

If we provide notice to you by email, we’ll send it to the email address you have saved with us. If we provide notice by BMO Online Banking, it will be available through the BMO Online Banking Message Centre (Message Centre). This consent only applies to this installment plan and does not change how you have requested to receive other documents from us such as your monthly account statement.

We may notify you by mail if we’re unable to send you notice through email, or if we otherwise consider it appropriate. If we’re required to send a notice by mail, we’ll use the most current mailing address you have saved with us.

The information in this document is correct as of October 18, 2023, and is subject to change.