wher does my money go?

philfranzjones

When i make a payment on my credit card on line or by phone the amount i pay leaves my account immediately but takes 4 working days to arive in my credit card account. where is my money during that 4 days? some times the payment due date has passed during this time and charges can be incurred

CannyJock

philfranzjones wrote: »

When i make a payment on my credit card on line or by phone the amount i pay leaves my account immediately but takes 4 working days to arive in my credit card account. where is my money during that 4 days? some times the payment due date has passed during this time and charges can be incurred

The money sits in a "clearing" process earning either with your bank or the card company earning them interest while they allocate the funds to your account and carry out any checks they need to do.

molerat

philfranzjones wrote: »

When i make a payment on my credit card on line or by phone the amount i pay leaves my account immediately but takes 4 working days to arive in my credit card account. where is my money during that 4 days? some times the payment due date has passed during this time and charges can be incurred

So set up a DD for minimum payment and pay any extra by the other methods. That way you will only incur interest and not charges. It always amazes me that people still leave payments that are subject to the quirks and delays of the banking system right until the last moment.

Mr.Mulla

philfranzjones wrote: »

When i make a payment on my credit card on line or by phone the amount i pay leaves my account immediately but takes 4 working days to arive in my credit card account. where is my money during that 4 days? some times the payment due date has passed during this time and charges can be incurred

Just like what CannyJock said, when you make a payment over the phone or through online, it is usually in the "clearing process". Based on experience, it would be better to pay them at the branch because they credit the payment automatically without the "clearing process", that is with Citibank though so I am not sure if it works with other banks. Or maybe try paying them ahead of the 4 days clearing process.