Base lending rate

The base lending rate is defined in §247 of the German Civil Code. A variety of German legal provisions refer to the base lending rate. According to § 288 German Civil Code the default interest has to be 5 percentage points above the base rate of the German Federal Bank. As far as claims among companies are concerned the default interest has to be 8 percentage points above the base rate of the German Federal Bank.

Creditworthiness

Creditworthiness is the financial strength or rather the economic capacity combined with the most possible flawless rating of a person. In order to determine the creditworthiness of a person, different values are considered and evaluated. The better the creditworthiness of a consumer the more likely he or she will be granted a loan or will be able to pay in instalments.

Checkout process

The checkout is the last part of the order procedure in an online shop in which among other things the payment method is chosen.

Data privacy statement for RatePAY payment methods

Please refer to Data Privacy Policy

E-Commerce

E-Commerce means “electronic commerce”. It is the electronic trade online. This term therefore comprises each form of buying and selling online.

Annual percentage rate of charge

The annual percentage rate of charge is the interest rate which makes the percentual costs per year which consumers need to pay when paying by RatePAY Instalments. In comparison to the annual borrowing rate, the annual percentage rate of charge not only comprises the interest rate calculated based on the borrowing rate but also includes further calculative factors.

Factor

The factor is the party that acquires the claims resulting from purchase transactions from the merchant.

Settlement Date

The settlement date is the date by which consumers have to pay the claims which they owe.

Principal demand

The principal demand refers to the claim arising from the shopping basket value and equals the cash price of the purchase transaction. There might exist secondary claims besides principal demands.

Purchase transaction (transaction)

A transaction is a contract for goods or services concluded between a merchant and a consumer in the online shop of an online merchant. In order to offer RatePAY payment methods to his customers the merchant has to conclude a contract with RatePAY in advance.

Conversion rate

The conversion rate defines how many of all visitors in an online shop place an order in this particular shop. It is a percentual value. With this business ratio a merchant can measure the effectiveness of his online shop and can take measures in order to optimize his shop and sales processes.

Duration

The duration is the deferred repayment period of instalment payments.

Liquidity

Liquidity is the availability of sufficient funds, in order to meet all payment obligations in due time.

Secondary Claims

Secondary claims refer to additional transaction charges that might occur in the payment process (dunning fees, default interest, interest rates for instalment payments etc.) Secondary claims can occur in addition to principal demands.

Payment Service Provider (PSP)

PSPs handle the ongoing technical integration of a variety of payment methods such as credit cards and RatePAY payment methods.

Postident (also Postident procedure)

Postident is a personal identification service offered by Deutsche Post AG. The service is used by companies which want to conclude a contract with a new customer. To participate in this procedure the new customer has to take the Postident documents received from the company he wants to conclude a contract with, together with his ID card or his passport, go to a local post office and get the documents and his identity confirmed by a postal employee. In order to offer the Postident procedure companies need to conclude a contract with Deutsche Post AG.

RatePAY-Claims

All claims against consumers arising from online transactions.

RatePAY-Data Privacy Policy (also Data Privacy Policy for RatePAY payment methods)

The RatePAY-Data Privacy Policy is the declaration which merchants need to provide their online customers. By accepting this declaration, customers agree that the merchant can use their personal data.

Instalment plan (also amortization table)

Instalment plans give an overview of the details of an agreed instalment payment, such as duration, number and payment amount of instalments, especially including the course of repayments and interest payments as well as the development of the residual amount.

Instalment payment (also hire purchase or partial payment)

By paying in instalments the total amount is split and has to be paid in partial amounts which are due at different moments in time (instalments). Generally for this kind of suspension of payment an extra charge (usually an extra interest rate) is payable, which is added to the total amount due.

Risk checks

Risk checks are credit checks, identity checks, address checks and fraud checks processed by RatePAY for the online merchant.

Borrowing Rate

The borrowing rate is the interest rate taken into account when calculating the actual interest rates due when paying by RatePAY Instalments. As far as the borrowing rate per annum is concerned, the interest rate valid for one year is referred to.

Transaction

please refer to purchase transaction.

Shopping portal

A shopping portal is the online-shop of a merchant.

Shopping basket

A shopping basket is the virtual shopping cart in an online shop. It comprises the number and composition of the goods selected by the consumer.

Disclaimer:

RatePAY does not assume any liability for the correctness and completeness of the terms explained and listed on this homepage. Entries of relevant terms can be deleted, corrected or added at any time. Please feel free to contact us via email if you have any suggestions or questions: info@ratepay.com.