B M O PaySmart Trademark Credit Card Installment Plan Terms and Conditions
What is an installment plan?
Installment plans give primary cardholders the ability to repay eligible purchase amounts in equal monthly payments over a defined repayment schedule subject to these terms and conditions.
Fees and the repayment period will be presented to you at the time you create your plan. Installment plans are not a special rate offer. Purchases or balances that you turn into installment plans count towards your available credit limit.
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 account has a balance of at least $100 in Canadian dollars (including taxes).
- 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 a resident of Quebec. If you have an installment plan and move to Quebec, your plan will be cancelled.
- You’re participating in a BMO promotion that impacts the payments or rates on your account (such as financial relief programs).
How your installment plan works
Installment plans have a fixed repayment schedule of equal monthly payments over a set period of time. Each plan includes a monthly fee that’s disclosed at the time you create your plan and is applied to your monthly credit card statement.
Your plan’s total 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. 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.
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:
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:
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, and you will not be liable for unbilled monthly fees.
How we can cancel your plan
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 December 14, 2022, and is subject to change.