DPD, or Days Past Due, represents the number of days a payment exceeds its due date. For instance, if a bill due on January 1 is paid on January 10, the Days Past Due is 9 days. It serves as a vital metric for merchants, highlighting the timeliness of payments.
It's imperative for merchants to closely monitor DPD, as consistently high values may indicate operational or customer interaction issues. Addressing these concerns promptly is crucial to maintaining a healthy financial environment for both merchants and customers.
Additionally, specific DPD thresholds are established. If a merchant's customers consistently exhibit a high default rate, predefined measures are triggered to proactively manage and mitigate potential risks.