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ArticlesAn Easy Payment Plan (EPP) is a credit card instalment arrangement that lets an eligible purchase or card balance be repaid over a defined number of monthly instalments instead of being paid in one statement cycle. The plan may carry an interest/profit rate, processing fee or other charge, and the converted amount can continue to use part of the card’s credit limit until it is repaid.
How does an EPP work?
The issuer identifies eligible transactions or allows the cardholder to request conversion of a qualifying purchase into an instalment plan. The bank then sets the tenure, monthly instalment and applicable pricing. Plans can be offered directly by the issuer, at selected merchants, or after a transaction has posted, depending on the card programme.
EPP vs paying the card normally
| Option | Repayment structure | What to watch |
|---|---|---|
| Normal card purchase | Falls into the regular statement and payment cycle | Finance charges can apply if the eligible balance is not paid according to card terms |
| EPP | Converted into scheduled monthly instalments | Plan rate, fee, tenure, cancellation and early-settlement terms |
| Merchant instalment offer | Instalment arrangement linked to a participating merchant | Eligibility, merchant conditions and whether any processing fee applies |
Example: instalment amount
Illustration only: if an AED 6,000 purchase is converted into a 6-month plan with no financing cost but an AED 120 processing fee, the purchase principal would be AED 1,000 per month and the separate fee would increase the total plan cost to AED 6,120. A plan advertised as “0%” can therefore still have another fee, so compare the total payable amount.
Does an EPP free up my credit limit?
Not necessarily. The unbilled instalment principal can continue to occupy part of the card’s approved credit limit, with available credit gradually increasing as instalments are repaid. The exact treatment depends on the issuer’s system and plan terms.
What should you check before converting a purchase?
- Eligible minimum and maximum transaction amounts.
- Available tenures.
- Interest/profit rate, if any.
- Processing or conversion fee.
- Total amount payable over the plan.
- Whether the plan can be cancelled or settled early and at what cost.
- How the plan affects available credit.
- What happens if a monthly instalment is missed.
EPP and credit-card disclosures
CBUAE standards require financial institutions to disclose applicable fees, pricing and material product terms clearly. If a plan is promoted as low-cost or zero-cost for a limited period, the associated conditions and any other applicable fees should be read together rather than evaluating the headline rate alone.
Frequently asked questions
Is an EPP always 0%?
No. Some plans are promoted at 0% while others carry interest/profit, and a processing fee can still apply.
Can every purchase be converted into instalments?
No. Eligibility, minimum transaction amounts, merchant rules and conversion windows vary by issuer.
Does an instalment plan reduce available credit?
It can. The remaining plan principal may continue to use part of the approved credit limit until repaid.
Can I settle an EPP early?
Possibly, but early-settlement or cancellation terms are issuer-specific.
Is EPP the same as a personal loan?
No. An EPP is linked to the credit card account, while a personal loan is a separate credit facility with its own underwriting and repayment terms.