Paying on time but credit card says it didnt arrive on time?

What is the legal position when you pay your monthly credit card by debit card on time but due to the machinations of the banking or postal systems (eg bank holidays, weekends) the bank still charges interest and late payment charges. The money left your account immediately? If you buy goods with a debit card, you dont need to return 2 days later ('when payment has cleared') to collect your goods? When you phone to beg with a customer services rep. they always relent? What is the legal 'paid' date?

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  • YorkshireBoyYorkshireBoy Forumite
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    The payment services regulations require a payment to 'arrive' by the end of the following business day. However, if you initiate the payment after a particular day's cut-off time this means the payment won't be sent until the next business day so an extra day is allowed.

    I'm guessing you messed up last weekend, when there were 3 non-business days?

    What does your statement and/or T&Cs say about how long to allow?
    Why are you leaving it circa 3 weeks until the last minute?
    When you phone to beg with a customer services rep. they always relent?
    Is that a question or a statement of personal experience? If the former, they don't. If the latter, then one day they won't if you continue to breach your T&Cs!
  • edited 1 September 2013 at 5:40PM
    [Deleted User][Deleted User] Forumite
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    edited 1 September 2013 at 5:40PM
    What is the legal position when you pay your monthly credit card by debit card on time but due to the machinations of the banking or postal systems (eg bank holidays, weekends) the bank still charges interest and late payment charges.


    You didn't pay your monthly credit card bill on time though. As you repeatedly get told online and within your T&C's, payments take time to filter through the system. Phoning up to pay before the cut off date is NOT the same as actually paying before the cut off date.

    If i was you, i would just grit your teeth and bear it, it sucks but the bank haven't messed up, essentially, you have.

    And even if you do phone up and get the charge removed, you will still have a late payment record on your credit report. Removing a charge is not the same as accepting liability.
  • What is the legal position when you pay your monthly credit card by debit card on time but due to the machinations of the banking or postal systems (eg bank holidays, weekends) the bank still charges interest and late payment charges. The money left your account immediately? If you buy goods with a debit card, you dont need to return 2 days later ('when payment has cleared') to collect your goods? When you phone to beg with a customer services rep. they always relent? What is the legal 'paid' date?

    I have done this in the past and bothered them on the phone until they said that they would remove the charges just this once...make a fuss and good luck!
  • For interest purposes, if the money has gone out of your account and it is an account held at the same bank, I thought the payment date is treated as the date that applies for calculation of interest, regardless of when the bank actually processes the payment/

    Both of our banks use the faster payment method, so all payments to cards are credited and available within 2 hours of payment, unless after the day's cut off period, in which case it is availabe by 8am the next day.

    If you have a bank which doesn't work like this, perhaps it is time to change to a better bank?
  • datlexdatlex Forumite
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    My credit card statement clearly says to allow a certain number of days for the payment to reach them. A way of getting round this if you want to keep the money in your account until the day it is due, is to go into the bank the credit card is part of and pay over the counter as it will credit straight into the credit card's account.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • pqrdefpqrdef Forumite
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    The money left your account immediately?
    Not often. What usually happens with cards is that the payee gets an authorisation, which is a guarantee of payment, and proceeds on the strength of that.

    Then the bank puts your money on hold so you don't spend it on something else. But the money is still earning interest in your account.

    The payee takes the payment as and when they get round to it.

    You can't really "pay" a CC by debit card. You can only ask the CC firm to collect, which they will do when they feel like it.

    In fact - depending on the card issuer - there may be no way to pay a CC on the due date. Even if you send money by real-time FP or pay in cash at the issuer's bank, the money only goes into a collection account, and the credit to your card account can then be dated the next working day (which can be up to 5 calendar days later).
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
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