Credit Card Direct Debit

buses7675

Hi All,

I currently have an MBNA/A&L Credit Card, which I have been paying off using a debit card online each month in full.

I intend to change this to a direct debit soon, again, paying off in full each month (this option is clearly shown on the online DD form!), but was wondering if anyone knows when the DD is taken from my current account.

Is it on the date of the statement being sent, or just in time for the 'Pay By' date, i.e. for last statement I had, the final day to pay the balance was 27/04/05, so would the DD be taken on or just before this date? I'd assume the later, but just want to see if anyone else knows for sure.

Was intending too to apply for either an Amex Blue card or the Morgan Stanley 1% Cashback card later in the year (or when I get a full time job anyway!), so does anyone know the same info for Amex/Morgan Stanley?

Cheers

Steve

Joe_Bloggs

I prefer to manually pay off credit card bills. I have found that the automatic request from the credit card company is setup at least five working days before the actual transaction takes place. You can try paying them after this date manually via internet banking and they will probably still take their estimated amount. Direct debit is fine for fixed bills but I don't like it for credit card bills.
I could also benefit from those who know what happens from the other side of the financial fence.
J_B.
I also find the online statements from Amex to lag behind by an age and there is no way of telling when you owe them nothing. Apparantly I've never paid them a penny of interest !

buses7675

Hi,

Just had a bit of a look into the Amex and Morgan Stanley cards anyway, and from it, based on amongst other things the number of shops that accept Amex, the MS MasterCard is very probably the better option. Also had a look at its online demo and it seems very similar to the way in which the MBNA one works, as in being able to set up DDs, debit card payments etc.

I suppose given how easy it is to pay them online, it may well be in my favour to pay them manually anyway (I'm online every day, and usually check all my accounts, so its not as though I can't get around to it!) - At least that way I'd be able to control when it was paid, and just supposing an odd month I decided not to pay the full ammount, I'd be able to do that too without much messing about.

Cheers

Steve

realaledrinker

Amex debit your bank account 7 days before the date by which other types of payment have to hit the account.

grumbler

I usually pay CC bills by DD - either minimum or full payment. For some CCs DD date is the same as the date shown on the statement. From my experience with MBNA Conran card DD transaction is a few days earlier, for example:
To Reach Your Account by: 13/01/2005
Withdrawal date 08 January 2005 (Saturday)
DD transaction date 10/01/2005 (Monday)

For Amex Blew time difference is bigger, but they give two dates in their statement, for example:
Payment Due Date 14/05/05
Direct Debit Date 07/05/05

You must be careful with the first payment after setting up the DD. Usually you can see DD online on your current accont as soon as it is set up.

klondyke

buses7675 wrote:

...but was wondering if anyone knows when the DD is taken from my current account.

Is it on the date of the statement being sent, or just in time for the 'Pay By' date, i.e. for last statement I had, the final day to pay the balance was 27/04/05, so would the DD be taken on or just before this date? I'd assume the later, but just want to see if anyone else knows for sure.
Steve

Most credit card dds are geared to collection on or just before 'pay by' date. It will usually tell you on your statement when they intend to collect (if it doesn't, it can be a useful reminder that DD has not been set up). Some cards allow you to choose or vary your regular payment date. But, as others have noted, the process may be started several days before, making cancellation difficult eg if in the meantime you pay via BT from another card.