Amex late fee for paying on time?

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Hi,

I have an Amex card and my payment date in September was the 17th. I got a bit busy and ended up paying by debit card via the website on the 17th. The payment confirmation said the following:
Thank you - Your Payment has been approved
Your payment has been successful and our financial records have been amended accordingly. Please bear in mind that it can take 2-3 business days for the
actual payment to physically appear on your account.

I assumed that meant that I had paid and all was good!

I noted on my following statement that there was a £12 late payment fee on it so I called Amex to query it. They waived it as a "gesture of goodwill due to having an immaculate credit history" with them.

This is the first time I've paid on the date my payment was due, I usually pay well in advance as I use the card for company expenses and I get the money before the due date.

Apparently it appears in the small print that different payment methods take different time frames to reach them (section 18, requested a copy post).

I'm just wondering the following:
1. If a term is fair where by a customer can be penalised for the provider's delay?
2. Who judges what is fair?

Thanks

Comments

  • jd87
    jd87 Posts: 2,345 Forumite
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    edited 14 October 2010 at 6:59PM
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    This is how all credit cards work. At least now you know.
    Mister_E wrote: »
    I'm just wondering the following:
    1. If a term is fair where by a customer can be penalised for the provider's delay?
    2. Who judges what is fair?

    It's all in the T&Cs which you read and agreed to so it's all judged as fair.
  • exel1966
    exel1966 Posts: 4,978 Forumite
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    Mister_E wrote: »
    Hi,

    I have an Amex card and my payment date in September was the 17th. I got a bit busy and ended up paying by debit card via the website on the 17th. The payment confirmation said the following:
    Thank you - Your Payment has been approved
    Your payment has been successful and our financial records have been amended accordingly. Please bear in mind that it can take 2-3 business days for the
    actual payment to physically appear on your account.

    I assumed that meant that I had paid and all was good!

    I noted on my following statement that there was a £12 late payment fee on it so I called Amex to query it. They waived it as a "gesture of goodwill due to having an immaculate credit history" with them.

    This is the first time I've paid on the date my payment was due, I usually pay well in advance as I use the card for company expenses and I get the money before the due date.

    Apparently it appears in the small print that different payment methods take different time frames to reach them (section 18, requested a copy post).

    I'm just wondering the following:
    1. If a term is fair where by a customer can be penalised for the provider's delay?
    2. Who judges what is fair?

    Thanks

    The only way to pay AMEX on the due date without getting a late payment fee/late payment marker is to pay over the phone using a debit card. The transaction will be approved and registered immediately, though it will still take 2-3 days for the account to be updated online. All other methods (as you've found out) will clear too late.

    Generally (with most payment methods) credit card payments take 3-4 days to clear but there are individual company anomylies where payment can be made on the due date and be classed as ontime whether it be via Faster payments or other in house clearing processes.
    Others which I'm specifically aware of and regularly use are MINT, PO Card, Lloyds.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    edited 14 October 2010 at 7:13PM
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    Mister_E wrote: »
    Apparently it appears in the small print that different payment methods take different time frames to reach them (section 18, requested a copy post).
    Here they are in the meantime...

    http://www.americanexpress.com/pes/uk/benefits/pdfs/Platinum_421_QBW_Unexec.pdf

    You'll see they make reference to your statement. What did/does it say on there re payment timescales?
    1. If a term is fair where by a customer can be penalised for the provider's delay?
    2. Who judges what is fair?
    1. It isn't the "providers" delay. The delay is caused by the banking 'system' and 'settlement'.

    2. The court of the land. However, the OFT may have a say before it gets to court. That's if the industry regulators (eg FSA) and banking bodies (eg BBA) haven't got it right.
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