Citibank has taken a lead in offering its credit card customers more flexible payment terms, introducing a fixed payment option that allows them to convert part of their revolving balance to a term payment arrangement at a lower rate.Citi's fixed payment option was introduced a few months ago and is available with all its credit cards issued in Australia.Citi Australia head of cards and consumer lending Alan Machet said consumers had the choice of making an individual transaction using the fixed payment option or converting part of their balance.If the facility is being used with an individual purchase the minimum spend is A$500. If part of the balance is being converted the minimum is $1000.Terms are for six, 12 or 24 months and repayments are structured as standard principal and interest loans.The interest rate starts at 12.99 per cent and may be lower, based on an assessment of the account. The rate for revolving credit on Citi's popular Citi Platinum card is 20.99 per cent.There is no cost to set up the facility, which can be done online, and no fee if repayments are made ahead of schedule.Machet said: "The response has been strong. It gives our customers another tool for managing their spending and repayments."It gives revolvers a way of managing their balances and it gives transactors another way of handling large purchases."Citi's fixed payment option is an unusual credit card feature but it might not stay that way for long. The Government is calling for credit card issuers to provide consumers with alternative payment tools.The Treasurer released a consultation paper last week, outlining a proposed set of reforms to the credit card market. These include tighter responsible lending obligations, a ban on unsolicited credit limit increase offers, a change to the way interest is charged on balances and improved disclosure on costs.Another proposal is that card issuers would have to contact consumers who persistently make small payments and offer an alternative payment method, such as a repayment plan over a selected period of time.