Processing Time For Debit Card Payments To Credit Card Bill

JayCee

I normally pay my Tesco Credit Card bill off in full each month, making payment by Debit Card, via the automated telephone service.

It says in the small print "we recommend you do this 2 working days before payment date."

Last month, I was on holiday and made the full payment, on my return (a Friday) and they credited it on the Monday, but the bill was due to be paid on the Sunday, so they are claiming that I was 1 day late, resulting in me getting charged £43 interest.

I phoned them today and they are refusing to budge, despite this being the first occasion that I have been charged interest, as a customer of many years. The female I spoke to told me that I could proceed to raising a complaint, but it would make no difference, as the decision would not be changed.

When I asked for the address of the Financial Ombudsman (several times) she told me to look up their website.

I note that rival firm Barclaycard process Debit Card payments immediately and state on their website......

How long will a payment take to reach my credit card account?

A Debit Card payment is authorised straight away with your debit card issuer. This means you need to have cleared funds in your bank account when you're making the payment online. The payment will be made available within 2 hours.

On the basis that the money comes out of my bank account immediately, when the debit card payment is made, I have a vague recollection that someone questioned this with the Ombudsmen a few years ago and it was found that credit card companies cannot enforce the '2 day delay' rule.

Does anyone have any advice on how best to proceed, as I feel that the charge of £43 is excessive, given that it was only incurred due to their processing times?

Also, I was under the impression that she was obliged to supply me with the Financial Ombudsman's address, upon my request. Am I correct in thinking this?

dalesrider

Raise it as a complaint. You do not need the FOS/FCA details for this. In fact if you mentioned COMPLAINT or asked for FOS details on that call. Mean it should have been logged by the rep as a complaint...
Failure is a finable offence by the FCA.

I would lay odds on that if you raise it again you will get the interest refunded back....
Lets see.
£750 to go to FCA or £ 43 to customer..... Even the most stupid can see where this is heading.

JayCee

Thanks Dales.

I told her that I wished it to be raised as a Complaint, so it has hopefully been done, despite the fact that she told me "You can raise it as a complaint, but it will make no difference, as the decision won't be reversed and the interest won't be refunded."

I asked her what the point was in raising a complaint, if the outcome was already known, at which point she tried to back down and claimed that I said that, not her. I then reminded her that all calls were recorded, so it would be easy to ascertain exactly what she had said and that I was only repeating what she had said, word for word.

She then got rather stroppy and bizarrely, repeated the fact that the decision won't be reversed and the interest won't be refunded, after denying she had said that 30 seconds earlier..... which I again pointed out to her. :eek:

JayCee

Received a rather patronizing letter today, telling me that the decision won't be reversed.

Rather bizarrely, the scribbled signature on the letter is the same name as the Call Centre Rep that I spoke to.

Seems bizarre that the person answering the phone deals with their own complaints, but would explain why she knew in advance that the decision would not be reversed.

I note Barclaycard state that they receive immediate payment from the Debit Cards Bank and process telephone payments immediately, yet Tesco tell me that it takes 2 working days to receive and allocate payment.

Someone is telling lies and I doubt that it is Barclaycard.

A letter is now winging its way to Tesco's Customer Service Dept and I will progress it to the Ombudsman if no joy.

Herbalus

This might just be me, but in the last few months the number of complaints about Tesco customer service is catching up with Santander. I guess you only hear the bad stories though!

SnowTiger

Herbalus wrote: »

This might just be me, but in the last few months the number of complaints about Tesco customer service is catching up with Santander. I guess you only hear the bad stories though!

OP mentioned:

Last month, I was on holiday and made the full payment, on my return (a Friday) and they credited it on the Monday, but the bill was due to be paid on the Sunday, so they are claiming that I was 1 day late, resulting in me getting charged £43 interest.

So they paid off their statement balance the day before the next statement was due to be printed. That's cutting it very close, especially as the next day was a weekend.

I don't think OP has much of a case. They simply left it too late to pay, however Tesco will probably prefer to waive charges rather than let it go to the FOS. So, it's worth pushing on with an official complaint.

jamesml

I would agree. I'm pretty sure that MBNA say they must have received cleared funds by the due date, and that it may take up to 2 working days to clear.

I appreciate you don't want to pay and you technically made your payment before the due date, but as you have already pointed out, your T&C's state that they recommend you making the payment 2 days early. You didn't follow the recommendation, your payment didn't clear in time (which Tesco obviously thought would happen, since they recommended you pay 2 days ahead) and as a result you have been charged interest. It but what would you do in their shoes - your payment didn't make it on time.


I'm sure people would get upset if they knew it might take 2 days but didn't tell anyone that - at least they put it in their T&C's.

meer53

If a payment is due on a Sunday, 2 working days before payment date would have been Thursday so sending it on Friday resulted in the charge. The charge wasn't incurred due to their processing times, it was incurred because you didn't send it within the recommended time. If you know you're going to be away when the payment is due, why not set it up before you go ?

The only time that debit card payments will credit straight away is if you're paying with a debit card issued by the same company who issued the credit card.

dalesrider

JayCee wrote: »

I note Barclaycard state that they receive immediate payment from the Debit Cards Bank and process telephone payments immediately, yet Tesco tell me that it takes 2 working days to receive and allocate payment.

Someone is telling lies and I doubt that it is Barclaycard.

A letter is now winging its way to Tesco's Customer Service Dept and I will progress it to the Ombudsman if no joy.

Why is someone telling lies?

Each bank has its own processes. Given that Tesco are not a processing bank, they are using a 3rd party to process the debits.
Which could easily explain the delay.

If they say 2 days for a debit card payment. Then that is what you have to go by... NOT what Barclays do.

Sadly I think you are on a hiding to nothing. As a debit card payment, unlike a faster payment, has no timescales to be drawn on.
Why did you not make the payment before you went on holiday, instead of waiting till you got back knowing you were running on tight deadlines.

guesswho2000

Afaik Barclaycard are the one and only issuer to credit a debit card payment so quickly. Another reminder why a direct debit for the minimum is essential - although I don't practice what I'm preaching on some of my cards (Tesco included), it is good practice.

I very, very nearly missed Tesco myself this month, realised two days before the due date. I made a faster payment to the account as well as a debit card payment, both hit the account in time thankfully (thereby preserving my record of no missed or late payments ever ), however the FP showed as available within minutes, so there's an option for next time.

Archergirl

Why not just set up a direct debit and not have to worry about it?
You can also get texts sent to your phone to remind you when the payment is due.