What is a trigger payment?

Asked by: Jonathon Reichert  |  Last update: March 17, 2026
Score: 4.1/5 (1 votes)

Trigger Payment means an aggregate payment in one (1) lump sum within thirty (30) days following any Trigger Event totaling an amount equal to three times Executive's annual Base Salary in effect at the time of the Trigger Event.

What does trigger payment mean?

Payment Trigger means the occurrence of a Change in Control during the term of this Agreement coincident with or followed at any time before the end of the 12th month immediately following the month in which the Change in Control occurred, by the termination of the Executive's employment with the Corporation or a ...

How does a trigger rate work?

A trigger rate, identified in your variable mortgage fine print, is the rate reached (as a result of prime rate increases) where your fixed payment is only paying interest with nothing going towards the mortgage principal. Any interest not covered is being added to your mortgage balance.

What does it mean when a payment link has been triggered?

When it Triggers: When a payment is made by a customer, and a receipt is requested or selected to be sent through the payment creation modal.

What happens when you reach your mortgage trigger rate?

Your trigger rate is the interest rate at which your mortgage or loan payment only covers interest costs. When you reach your trigger rate, none of your payment goes toward paying down the principal. This means that your payment doesn't cover the full amount of interest for that period.

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45 related questions found

Why did my mortgage go up if I have a fixed rate?

It's common to see monthly mortgage payments fluctuate throughout the life of your loan due to changes in your home value, taxes or insurance.

What is a mortgage trigger lead?

Whenever you formally apply for credit or financing, your lender pulls your credit report. This is known as a hard inquiry. That inquiry automatically “triggers” to lenders that you're looking for new credit.

How safe is link payment?

Your customers' data is encrypted to keep it secure and, as a certified PCI Service Provider Level 1, Link meets the highest level of certification available in the payments industry.

What is Klarna financing?

Klarna Financing gives your customers the option to buy now and pay over time with monthly plans between 6-36 months, interest bearing or interest free. Your customers get increased purchasing power and the ability to manage their cash flow.

Why do I keep getting a payment error?

Make sure you have enough money in your account for the purchase. If you're still having issues, contact your bank to find if there's a problem with your account.

How is a trigger rate determined?

The formula to calculate your trigger rate requires you to find your payment amount, the number of payments per year (payment frequency), and the current balance owed. Payment amount X number of payments per year/balance owing X 100 = Trigger rate in %.

What is a trigger rate annuity?

Trigger—A stated rate is received as long as the index return is not negative over a specific time, such as one year. Example—If the stated rate is 4% and the index return is zero or greater, your contract would receive 4%.

What happens to a variable mortgage when rates decrease?

With a variable rate mortgage, mortgage payments are set for the term, even though interest rates may fluctuate during that time. If interest rates go down, more of the payment is applied to reduce the principal; if rates go up, more of the payment is applied to payment of interest.

What is a trigger in banking?

If the borrower should incur more debt, the contract's triggering event, or clause, will kick in. The bank may then take necessary actions to protect themselves which may include foreclosure of property secured through the loan or increasing the original rate of interest charged.

What is an example of a trigger event?

These events can signal changes in needs, priorities, or decision-making processes, making prospects more receptive to your solution. Common examples include new executives joining a new company, funding rounds, product launches, or major organizational changes.

What is a trigger term in banking?

It is the presence of a specific word or phrase that would “trigger” the advertisement to include additional disclosures to the consumer. The specific triggering term and related requirements are governed by the Truth in Lending Act (for loan-related products) or the Truth in Savings Act (for deposit-related products).

What credit score do you need for Klarna?

Multiple payment plans with no interest: Klarna's Pay in 4 and Pay in 30 can help you spread out the cost of your purchase without incurring interest, which is hard to find among other types of credit products, especially those that have no minimum credit score requirement.

What is the downside of Klarna?

Klarna pros and cons

But be careful — there's no limit to how many Klarna loans you can have out at once. If you don't pay on time, on every loan, you may be overwhelmed by multiple $7 late payment fees. Klarna also charges service fees on some purchases (unless you sign up for Klarna Plus for $7.99 a month).

Does Afterpay require a down payment?

Loans through the Afterpay Pay Monthly program are underwritten and issued by the First Electronic Bank. A down payment may be required. APRs range from 0.00% to 35.99%, depending on eligibility and merchant.

Who uses link payments?

Link is built by Stripe, a payments technology that's used by millions of companies around the world like Amazon, DoorDash, and Ford.

Is link a good way to pay?

Whether shared via email, text, or social media, payment links make accepting payments quick, convenient, and hassle-free; offering a flexible solution for businesses to process payments without the need for a physical card terminal or website checkout integration.

How to check if a payment link is legit?

Check the domain name:

The official website of the business or service provider should be the domain name of a secure payment link. Links with different domain names should be avoided since they can be phishing scams.

What is a trigger purchase?

Buying triggers help pinpoint the moments when potential customers are most likely to make a purchase. Overall, they help you better understand their thought process when looking for specific solutions, as well as their unique buying process.

How do credit triggers work?

The credit reporting agencies create a list of consumers that match both the lender's criteria and a “trigger” event. The most common trigger event is applying for a mortgage, but there are others. These trigger leads are considered a “prescreened offer” or a “firm offer of credit or insurance”.

What is a trigger rate on a mortgage?

For variable-rate mortgages with fixed payments, the trigger rate is the interest rate at which the interest portion of the payment equals the total payment amount, and therefore the principal portion is zero.4 If interest rates increase beyond the trigger rate, the amount required to cover the interest payment will be ...