Payment due date with Capital One

Bedford_Jezzard

I've just realised how Capital One conjure up the money to pay cashback on their World Mastercard. The gap between statement date and "Payment Due" date is only 15 days and, as they say direct debits may be taken up to 5 days before the due date, this gives a credit period of only 10 days, compared to 25 - 28 days on all previous cards I've had. It seems to me that, if I had a card with 28 day credit period and put the amount of my credit card bill in a savings account for two weeks each month, I'd end up earning more in interest than I'd get with Capital One cashback. Or have I got this wrong?
In any case, it would be a good idea to publish the gap between statement date and payment date when mentioning credit cards on this site.

molerat

Which savings account do you have that offers 24% p.a. interest to offset the 1% cashback ? (i.e £1000 invested for the extra 2 weeks receiving £10 interest)

rb10

My card (Halifax Clarity Reward) gives 25 days between statement and due date, and they will never take the DD earlier than the due date.

If you put £1k per month on the card, then (at 3% interest, after basic rate tax), you'll only make £12 in the 12 lots of 15 days.

So this alone is unlikely to make another card more profitable.

Bedford_Jezzard

That's what comes of trying to do calculations in my head and getting the wrong number of 0's !

luci

My Clarity Rewards card had 30 days between the statement date and the payment date last month. However my Capital One is only 12 days.

chexum

The World Mastercards simply get a higher commission from the merchants, and they must not pass this cost on. You can be sure they like it

realaledrinker

My Cap One card statement date is 7th of the month with the amount collected between 30th - 2nd depending on the weekend.

Pharmer

when does the cashack get added this year?

alexlyne

My cashback arrived in the January statement. ONly had the card since June.

elfen

Mine's around the 8th of the month, they asked when I wanted my payment to go out and I said the 8th, so it goes out on or around then.

nomoneytoday

chexum wrote: »

The World Mastercards simply get a higher commission from the merchants, and they must not pass this cost on. You can be sure they like it

I doubt the merchant knows the brand of card used. They'll just see a Visa / Mastercard payment and be charged their standard rate by their bank