Why does paying cash need 5 days before min payment date !

freestyle_3

Just returned from holiday.

Gone through the paperwork, and as expected received a credit card statement.

The min payment due date is the 8th. So on Sat I thought no problem I will go into the branch and make a payment today (in cash if need be !)

However after speaking to them on the phone they tell me that any form of payment needs to be made 5 days prior to this date to go through (not sure if thats working days)

Surely that can't be right, I understand that electronic transfers take an amount of time but cash. I mean come on

So I'm now faced with a late payment fine of £20 + the interest ! arghh

KTF

Are you paying it into the branch of the card issuer i.e. Barclays or going to your branch who then has to transfer it over to the lender?

If you call them up and explain that you have just got back from holiday and didnt know about the cash transfer delay then they will probably waive the fee.

dc

Payment online by Debit card on the card issuers site usually takes two days, and is the quickest way to pay. There is always a "funds must be availble" rider, as the the transaction checks the transfer in real time.

I have had transaction refused because it would have meant a £2 overdraft even though money was on its way. Just the opposite of cheque clearing

Robert_Sterling_3

Paying at least the minimum each month by direct debit is a good idea as the onus is then on the credit card company to take it at the appropriate time.
There is still an onus on the credit card holder to have the appropriate amount of money in a current account at that time.

King_Of_Fools

Which card have you got freestyle? There may be quicker was of paying it for some companies (Halifax clear cash on the day if paid into a branch before 3pm, for example).

freestyle_3

You all pointed out exactly what I thought. The credit card is from nationwide. I also have a current account with them, which I could transfer or draw funds from to pay it.

However they said because it's a building society, if I pay by cash in a Nationwide branch they first turn it into a cheque, and then blah blah blah.


Ok, cut a long story short. They have agreed 'this time only' to weive the charge. But it just seems to me to be wrong, if it's going to take 5 days for any type of payment method (even cash in a branc) then it should say so on the letter or at worse in the small print of the T&Cs.. but I've not seen it !

YorkshireBoy

freestyle wrote:

...then it should say so.....in the small print of the T&Cs.. but I've not seen it !

Have you looked?

"2. What you have to pay
(b) You can pay us by Direct Debit; by sending a cheque to Nationwide Building Society, Credit Card Services, P O Box 2884, Swindon SN38 1WZ; by bank giro credit; by making a payment at any of our branches or by using our FlexAccount Bill Payment Service. When we initially receive your payment, it will be treated as uncleared funds, except if it is a Bill Payment made from a Nationwide FlexAccount. The central clearing cycle is normally 3 working days, and you should allow this time for your payment to clear (this may take longer if payment is made through an organisation other than Nationwide). The available balance on your account may not be adjusted until we can be sure that cleared funds have been received to your account."

It's good news that they're waiving the late payment charge. Are they also waiving the late payment flag on your CRA report?

http://www.nationwide.co.uk/NR/rdonlyres/4890DD22-5ADE-4EDB-A3D9-5078664F3445/0/P4433CCardOct05.pdf

King_Of_Fools

Ah, the problem with Nationwide is that the funds have to clear through a Clearing Bank before they get to the account (even if you pay in a branch or from a Nationwide Flex account) so they take longer than banks.

HGLTsuperstar

The big problem with Nationwide is now they have cut the 56 days interest free, so basically you need to pay on the day you receive the statement, or sooner if poss! Therefore am maxing out my cashback on Morgan Stanley and keeping Nationwide for overseas only

freestyle_3

Thank you YorkshireBoy !

I did look in my T&C book, but could'nt see what I was looking for. Even now reading the excert you kindly investigated for me. I seem to have read it that it's refering to transfers and not 'cash'.

After all I already have a FlexAccount, so should'nt that mean it's counted as cleared funds.. ?

HGLTsuperstar

Sadly no, had this discussion myself in branch. You can do a transfer from your flex to your credit card online, but that still takes 2-3 days to show up despite what the T&C say, even though it leaves your flex account online balance immediately.