RBC^® Installment Plan Terms and Conditions

These RBC^® Installment Plan Terms and Conditions apply to purchases installed on or after March 1, 2023. If you installed your purchase prior to this date, the Terms and Conditions applicable to your plan(s) can be found at rbc.com/installmentplanterms.

The French version of the Terms and Conditions applicable to your plan(s) is available at rbc.com/conditionsplanversement / La version française des Conditions du plan de versements RBC applicables à votre(vos) plan(s) de versements est disponible au rbc.com/conditionsplanversement.

Below are the terms and conditions (“Terms”) that apply when you set up an RBC Installment Plan. Unless otherwise defined, capitalized terms used in these Terms have the same meaning as set out in your RBC Royal Bank^® Credit Card Agreement (“Cardholder Agreement”). Please note, if your RBC Royal Bank Credit Card Account (“Account”) is protected with RBC BalanceProtector^® insurance, refer to the insurance disclosure that appears at the end of this document for information on how it will work when you have an Installment Plan.

These Terms are a supplement to your Cardholder Agreement and should be read together. Your Cardholder Agreement can be found at rbc.com/creditcardinfo, under the “Documentation” section for your Credit Card.

Reading, Agreeing and Keeping a Copy. These terms are legally binding.

1. You must read and agree to these Terms, which are a legally binding contract between you and Royal Bank of Canada (“RBC”, “we”, “our”, “us”).
2. The RBC Installment Plan program allows you to convert an eligible purchase made with your Credit Card to monthly installment payments at the interest rate and/or Installment Plan Fee (as applicable), the repayment term, and the corresponding Total Monthly Plan Payment amount of the Installment Plan presented to you and which you have selected (the “Installment Plan Conditions”).
3. By converting your eligible purchase to an Installment Plan, you confirm that (a) you have read and you agree to these Terms; and (b) you agree to the Installment Plan Conditions, which form part of these Terms.
   
   These Terms take effect at the time that you set up your Installment Plan, in the province or territory where you live.
4. Keep a copy of this document. You can download, print or save a copy on your device and/or access a copy at rbc.com/creditcardinfo. We will also send you a copy of or provide a link to these Terms.
   
   Your monthly statement will have an “Installment Plan Summary” section that will outline the details of your Installment Plan Conditions. You can also view details of your Installment Plan Conditions in the RBC Mobile app.
5. If there is a conflict between these Terms and the Cardholder Agreement, these Terms govern to the extent necessary to resolve the conflict.

Eligibility for Installments. What transactions are eligible? Who is eligible?

6. We will determine your eligibility for Installment Plans. Your eligibility may be reviewed from time to time, and we reserve the right to change your eligibility at any time. A change in eligibility does not impact any purchases that you have already converted to an Installment Plan. You may lose the ability to convert future purchases to an Installment Plan if your Account is not in good standing.
7. There are two ways you may be able to set up an eligible purchase as an Installment Plan, if you are eligible.
   • Installment Plans may be set up after purchase through the RBC Mobile app. Purchase transactions that have been posted to your Account and that are eligible will be identified in the app. Purchases cannot be converted to an Installment Plan between 5:00 PM and midnight Eastern Time on the last day of your statement period.
   • From time to time, a purchase may be eligible for conversion into an Installment Plan at the time of making your purchase at select merchants online or in-store.
8. Some transactions are not eligible for an Installment Plan, including:
   • Cash Advances or Balance Transfers;
   • Fee or interest charges;
   • RBC BalanceProtector insurance premium charges;
   • Pre-authorized payments;
   • Any previously installed purchases; and
   • Purchase transactions from a previous statement period.
9. Only the primary applicant or co-applicant on the Account can convert eligible purchases to an Installment Plan. Authorized Users are not eligible.
10. Not all RBC Royal Bank Credit Cards are eligible for Installment Plans.
11. We may limit the number of active Installment Plans you can have for your Account at one time.

Converting an Eligible Purchase to an Installment Plan. How do I convert an eligible purchase to an Installment Plan?

12. We will identify purchases that are eligible to be converted to an Installment Plan and will indicate the eligible purchases and the Installment Plan Conditions in your RBC Mobile app or at the time you make your purchase. It may take up to 3 business days for the selected purchase to be converted to an Installment Plan. If you set up your Installment Plan at the time of making your purchase, your purchase will appear as a plan once the transaction has posted to your Credit Card Account (not when the transaction is authorized).
13. For Installment Plans set up at the time of making your purchase, the merchant must process the transaction within 30 days from authorization for your Installment Plan to be set up. If the merchant does not process your transaction within 30 days, the transaction will post to your account as a regular purchase and not be set up as an Installment Plan. In the event the transaction gets posted as a purchase, it may be eligible to be converted to an Installment Plan in your RBC Mobile App. If your purchase contains multiple items which the merchant charges to your Credit Card as separate transactions (for example, if they are shipped separately), multiple Installment Plans may be set up for that purchase. If multiple Installment Plans are set up for that purchase, the Installment Plan Conditions (e.g. repayment term and interest rate) for those plans will be consistent with what you agreed at the time of purchase.
14. You cannot make any changes to your Installment Plan once you have converted an eligible purchase. However, you can choose to cancel your Installment Plan. Please refer to the “Cancelling Your Plan” section for details.
15. Purchases converted to Installment Plans continue to be counted towards your available credit limit and will continue to earn Avion Rewards^®, Cash Back or any other co-branded loyalty program benefits consistent with a regular purchase. Installment Plans do not have any impact on earn rates for any applicable loyalty program that may be associated with your Account.

Interest and/or Fees. Will I be charged interest or fees on Installment Plans?

16. The Installment Plan Conditions reflect the specific details of the Installment Plan that you have agreed to for your purchase, including any applicable interest rate, one-time fee and/or monthly fee.
17. To calculate the interest and/or fees on your Installment Plan, we use the following formulas:
    • Monthly Interest: To calculate your Installment Plan interest, if any, we add the total principal amount of your Installment Plan still outstanding as the amount you owe each day, and divide this total by the number of days in each statement period. We then multiply this number by the applicable daily interest rate (obtained by taking the interest rate disclosed to you at the time you set up your plan and dividing it by the number of days in the year). We then multiply this value by the total number of days in the statement period to determine the interest we charge you.
    • Monthly Fee: To calculate your monthly fee, we use the total purchase amount that was converted to an Installment Plan and multiply it by the monthly fee percentage disclosed at the time you set up your plan. Monthly fee Installment Plans are not available if you reside in Quebec.
      Installment Plan monthly interest and monthly fees are charged on the last day of each statement period (other than the first statement period after you converted your purchase) as long as any portion of the purchase amount remains in the Installment Plan. The monthly interest or monthly fee will not be included on your first monthly statement after you convert the purchase. The monthly interest or monthly fees for the first and second statement periods will appear on your second monthly statement (unless you pay the Total Account Balance shown on the first statement in full by the Payment Due Date).
    • One-Time Fee: We may charge you a one-time fee when you set up an Installment Plan. If charged, it will be disclosed to you at the time you set up your plan, and will be a percentage of the total purchase amount that was converted to an Installment Plan. It will be charged within 3 business days from the date of conversion.

Payments. How much will I have to pay each month and what happens if I miss a payment?

18. Your monthly Installment Plan payment consists of your Monthly Principal (the principal portion of the total purchase amount to be repaid each month) plus any applicable monthly interest or monthly fee (except in the first statement after you convert the purchase). This amount is referred to as your Total Monthly Plan Payment and will be included in your Minimum Payment. For more details on how we calculate your Minimum Payment, please refer to your Cardholder Agreement.
19. There may be adjustments to your Total Monthly Plan Payments:
• In the last month of your Installment Plan to adjust for rounding;
• If you change your statement period; and
• In certain cases, where there have been credits to your Account, such as for refunds.
20. If you have any Installment Plans and you do not make your Minimum Payment (including the one due in the same statement period in which an Installment Plan is created) by the Payment Due Date and you have not paid it by your New Statement Date, all of your Installment Plans will be cancelled. Any Monthly Principal amount(s) that you missed paying, and your Installments Not Yet Due (“Unpaid Plan Principal”) will be subject to the interest rate applicable to regular purchases. Any unpaid one-time fee or monthly fee(s) on your Installment Plans will also be subject to the interest rate applicable to regular purchases beginning on the date the fee was posted to your account.
21. If you pay your New Balance in full by the Payment Due Date for the monthly statement on which those new installed purchases first appear, you will be charged interest at the Installment Plan rate you have agreed to, starting the day you converted your purchase (or you may be charged the monthly fee you have agreed to) plus any one-time fee. However, if you do not pay your New Balance in full by the Payment Due Date for the monthly statement on which those installed purchases first appear, you must also pay interest from the transaction date until the day before you converted your purchase, at the rate set out in your Cardholder Agreement.

Prepayment and Returns. Can I pay off my Installment Plan early?

22. Unless you pay your Total Account Balance in full, you cannot prepay your Installment Plan or allocate payments to your Account towards your Installments Not Yet Due. Payments made to your Account will be allocated as set out in the Cardholder Agreement.
23. If you pay your Total Account Balance in full or Current Balance in the RBC Mobile App or RBC Online Banking, all of your Installment Plan balances will also be paid in full and will no longer be eligible to be converted into an Installment Plan again. Your “Current Balance“ is the total amount owing on your credit card. It includes all your posted transactions plus any fees or interest. Your Current Balance does not include authorized transactions, which may take a few days to process. Any RBC Installment Plans you have set up will also be included in your Current Balance. To avoid paying off the installments not yet due, pay your statement balance rather than your current balance.
24. If you return a purchase that you converted to an Installment Plan, the return credit will normally be treated in one of two ways depending on how you set up your plan:
    
    • If you set up your Installment Plan after purchase through the RBC Mobile app: the return credit will not automatically reduce your Installment Plan balance outstanding and instead will be applied to your other balances first, as set out in the “Applying Your Payments” section of your Cardholder Agreement. If you wish to cancel the Installment Plan associated with your return, you may do so through the RBC Mobile app. However, if the return credit posted to your Account is greater than the balance owing on your Account, then the Installment Plan will be considered paid off and will be cancelled.
    • If you set up your Installment Plan at the time of making your purchase: the return credit will be applied to the associated Installment Plan balance outstanding first. This means that depending on the amount of the credit, it may reduce your Total Monthly Plan Payment in the current and/or a future month, reduce the number of Total Monthly Plan Payments remaining, or pay off your plan entirely. Any excess will be applied as set out in the “Applying Your Payments” section of the Cardholder Agreement.

Cancelling Your Plan. Can my Installment Plan be cancelled?

25. You may cancel an Installment Plan at any time through the RBC Mobile app. However, once you cancel your Installment Plan, that purchase is no longer eligible to be converted to an Installment Plan again. It may take up to 3 business days for the installed purchase to convert back to a regular purchase.
26. We will cancel your Installment Plan if:
    • You fail to make your Minimum Payment on time as set out in section 19 above;
    • You change your Credit Card to an ineligible card type;
    • You contact us to dispute a purchase that had been converted to an Installment Plan; or
    • Your Account is closed for any reason.
    We reserve the right to cancel your Installment Plan(s) at any time.
27. If you have an Installment Plan that is cancelled for any reason on or before the Payment Due Date for your first Total Monthly Plan Payment, the Unpaid Plan Principal for the cancelled plan (in this case, your installed purchase amount) will be subject to the interest rate applicable to regular purchases beginning on the day of the purchase. This interest rate can be found on your Credit Card statement in the “Payments & Interest Rates” section under “Annual interest rates” for “Purchases”, subject to any further increase as set out in the “Minimum Payments” section of the Cardholder Agreement. However, we will waive any interest on the Unpaid Plan Principal for the cancelled plan beginning on the day your plan is created until the day the cancellation is processed (which, for a missed payment, is the last day of the statement period).
28. If you have an Installment Plan that is cancelled for any reason after the Payment Due Date for your first Total Monthly Plan Payment, the Unpaid Plan Principal for the cancelled plan will be subject to the interest rate applicable to regular purchases beginning on the first day of the statement period in which the cancellation is processed. This interest rate can be found on your Credit Card statement in the “Payments & Interest Rates” section under “Annual interest rates” for “Purchases”, subject to any further increase as set out in the “Minimum Payments” section of the Cardholder Agreement. However, we will waive any interest on the Unpaid Plan Principal for the cancelled plan beginning on the first day of the statement period in which the cancellation is processed until the day the cancellation is processed (which, for a missed payment, is the last day of the statement period).
29. After the cancellation is processed, in the case where the New Balance was paid in full by the Payment Due Date that was due in the statement period in which the cancellation is processed, then:
    
    • If you pay the New Balance in full by the Payment Due Date that was due in the statement period following cancellation, then you will not be charged interest on the Unpaid Plan Principal.
    • If you do not pay the New Balance in full by the Payment Due Date that was due in the statement period following cancellation, then we will waive interest on the Unpaid Plan Principal beginning on the day after the cancellation is processed until the last day of the statement period in which the cancellation is processed.

Switching to a Different Credit Card. What if I switch to a different Credit Card?

30. When you switch your current Credit Card to a different RBC Royal Bank Credit Card, active Installment Plans will be transferred to the new Credit Card as long as the new card is an eligible card.

Changes to these Terms. How will we tell you about any changes?

31. We may amend this document from time to time, including changes to provisions relating to:
    
    • What the Terms cover and reading, agreeing and keeping a copy;
    • Eligibility and converting purchases to Installment Plans;
    • Calculation of interest and fees (we will never change your one-time fee, monthly fee percentage, or interest rate once you have set up a plan, except if you miss making a Minimum Payment as described above);
    • Calculation of monthly payments, missed payments, and treatment of prepayments and returns;
    • Plan cancellation and switching to another Credit Card; and
    • Amendment, language, interpretation of these Terms.
32. If we do amend these provisions, we will send you, at least thirty (30) days before the amendment takes effect, a written notice drawn up clearly and legibly, setting out the new clause(s) only, or the amended clause(s) and the clause(s) as it (they) read formerly, the date of the coming into force of the amendment and your rights set forth below. The change will take effect on the date indicated in the notice.
33. You may refuse the amendment, terminate your Agreement and these Terms, and request to close your Account without cost, penalty or cancellation indemnity by sending us a notice to that effect no later than thirty (30) days after the amendment comes into force, if the amendment entails an increase in your obligations or a reduction in our obligations. You may send us your notice at PO BOX 4047 STN A, TORONTO ON, M5W 1L5. You may also choose to cancel your Installment Plan(s). If you refuse the amendment, you are required to repay all amounts owing on your Credit Card Account.
34. If you have not taken any of the steps above, and your Credit Card or your Account number is used for a transaction or if any amount owing remains unpaid after the amendments come into effect, it will mean that you have accepted the amendments we have made to the Terms.

Language. Will you communicate with me in English or French?

35. When you applied for your Credit Card, you indicated whether you wanted us to communicate with you in English or French. We will respect your choice in all our correspondence with you, except as otherwise agreed. If you use Digital Banking (meaning online banking and mobile banking), your language preference may be affected by the language settings on your device, as set out in the Electronic Access Agreement. If you would like a copy of these Terms in the other language, you can contact us at 1-800 ROYAL^® 1-2 (1-800-769-2512).

Governing Law. What law applies?

36. These Terms will be interpreted in accordance with the applicable laws of the province or territory in which you reside (or the applicable laws of Ontario if you reside outside Canada) and the applicable laws of Canada. In the event of a dispute, you agree that the courts in the province or territory where you reside shall be competent to hear such dispute and you agree to be bound by any judgment of that court.

If you are enrolled in RBC BalanceProtector insurance for your Account and you set up an RBC Installment Plan, your coverage will continue to apply as follows:

Insurance Premiums

The premium calculations will remain the same as set out in your Certificate of Insurance, and your premiums will be calculated on all amounts charged to your Account, which includes any amounts related to your Installment Plan(s) as they form part of your insured balance.

Insurance Benefits

The insurance benefit calculations will remain the same as set out in your Certificate of Insurance, and your benefits will be calculated on your Total Account Balance, which includes any amounts related to your Installment Plan(s). Please note that the monthly benefits may not cover your entire Minimum Payment in certain circumstances depending on the Installment Plan(s) you have selected. You will remain responsible for any amounts due on your Account that are not covered by the insurance benefit.

For more information about your RBC BalanceProtector insurance, please see your Certificate of Insurance or call Assurant at 1-888-896-2766.

^® / ™ Trademarks of Royal Bank of Canada.

1 RBC BalanceProtector insurance is underwritten by American Bankers Life Assurance Company of Florida (“ABLAC”) and/or American Bankers Insurance Company of Florida (“ABIC”). ABLAC, ABIC, their subsidiaries and affiliates carry on business in Canada under the name of Assurant^®. ^®Assurant is a registered trademark of Assurant, Inc.