Barclaycard Minimum Payment

[Deleted User]

StevieJ wrote: »

The point is I also receive 2% cashback, so that must eat into their customer profit margin. Out of interest what % kickback do they get from participating organsations?

It varies. But the point is, as a business, they are fine with a certain level of non-interest payers.

StevieJ

opinions4u wrote: »

You can assume, get it wrong and accuse the card issuer of being an evil entity intent on rip-off.

Or you could ask, get some facts and act on them.

Blaming the card company here is ridiculous.

I sense you get a sense of perspective

bigadaj

StevieJ wrote: »

I sense you get a sense of perspective

You've received the illumination you've requested in your opening post but seem upset by the responses.

Probably best not to post a question if you don't like the answers.

StevieJ

bigadaj wrote: »

You've received the illumination you've requested in your opening post but seem upset by the responses.

Probably best not to post a question if you don't like the answers.

Sorry I don't get your logic there, I was grateful to Cell and Zx81 and Clapton for their responses, as my thanks testified, not so sure about the sniping posts

bengal-stripe

StevieJ wrote: »

Thanks, I can see now that this is another sly trick.

Some Credit Cards (MBNA for example) take the DD payment regardless of any additional payments. (If you do not want that, you'll have to advise them and ask for the DD to be pulled manually out of the system). Probably the same number of people fall foul of that set-up "paid in full, they still took the minimum payment" calling it a "sly trick".

I suppose, banks can't win.

StevieJ

bengal-stripe wrote: »

Some Credit Cards (MBNA for example) take the DD payment regardless of any additional payments. (If you do not want that, you'll have to advise them and ask for the DD to be pulled manually out of the system). Probably the same number of people fall foul of that set-up "paid in full, they still took the minimum payment" calling it a "sly trick".

I suppose, banks can't win.

But falling foul of that doesn't cost you a whole months interest, just a small overpayment. The bottom line is 'my fault', won't happen again though.

Linda32

StevieJ wrote: »

Thanks, I can see now that this is another sly trick. I will just pay the full amount next time (which of course will mean paying a small amount off the next month). I do get 2% cashback so I have been wary about setting a DD to the full amount in case they class me as a non profit customer and remove my cashback (my cashback this month was actually more than the interest so I can't complain too much ).

Hi, Just so you know, I very very much doubt they would ever remove your cashback.

I have the same card, which was previously Egg Money. I've had Egg Money/Barclaycard for at least 4 years. I've always had cashback and have never paid a penny in interest. I set up a direct debit to collect the whole amount each month.

chattychappy

Part of the business model of CCs is that customers don't always pay in full. Also they take BT deals and then run off the end, paying full interest. Or they take cash out without realising the true cost.

DDs are antiquated and 20 years ago (for some) they were probably a great alternative to cheques or paying cash over the counter. But these days, with their funny time limits and restrictions, I think it is better to do without them and use more modern alternatives.

DDs are widely loved by suppliers. They will tell you that they help keep their costs down and discount accordingly. But really they serve to divorce people from the true cost of products/services they buy. People sign up for CCs, cable TV, internet services, catalogues, whatever it might be and sign a DD. They never bother checking statements and are only vaguely aware of where the money is going. A bloke I knew at a cable TV company told me that the churn rate for DD payers was half that of of non-DD payers. Somebody who manually pays a bill each month is more likely to cancel a service or consider alternatives.

In the old days, CCs would only let you set up a DD for the minimum amount. Easy to see why (max interest). They were forced to change this practice.

DDs are touted as making life simpler and for simple bills perhaps they still work fine. But for CCs, the interactions with manual payments can be complicated and depend on timing. If you do pay interest, DDs are costly because instead of your paying as soon as you have funds available, you are forced to keep the funds in your current account waiting for the DD day.

I avoid them.

Fingerbobs

Linda32 wrote: »

Hi, Just so you know, I very very much doubt they would ever remove your cashback.

I have the same card, which was previously Egg Money. I've had Egg Money/Barclaycard for at least 4 years. I've always had cashback and have never paid a penny in interest. I set up a direct debit to collect the whole amount each month.

Ditto. I opened my Egg Money card in January 2008, and am still earning 1% cashback on it (although it is now obviously a Barclaycard!).

Prior to that, I was using a Nationwide Cash Reward card, which gave 0.5% cashback.

I'm now splitting between Aqua (3% up to £100) and ex-Egg Barclaycard (1% up to £200), and occasionally Halifax Reward Clarity (£5 on spend of £300).

Always paid in full every month, never paid a penny in interest or fees on any card.

Maestro.

chattychappy wrote: »

Part of the business model of CCs is that customers don't always pay in full. Also they take BT deals and then run off the end, paying full interest. Or they take cash out without realising the true cost.

DDs are antiquated and 20 years ago (for some) they were probably a great alternative to cheques or paying cash over the counter. But these days, with their funny time limits and restrictions, I think it is better to do without them and use more modern alternatives.

DDs are widely loved by suppliers. They will tell you that they help keep their costs down and discount accordingly. But really they serve to divorce people from the true cost of products/services they buy. People sign up for CCs, cable TV, internet services, catalogues, whatever it might be and sign a DD. They never bother checking statements and are only vaguely aware of where the money is going. A bloke I knew at a cable TV company told me that the churn rate for DD payers was half that of of non-DD payers. Somebody who manually pays a bill each month is more likely to cancel a service or consider alternatives.

In the old days, CCs would only let you set up a DD for the minimum amount. Easy to see why (max interest). They were forced to change this practice.

DDs are touted as making life simpler and for simple bills perhaps they still work fine. But for CCs, the interactions with manual payments can be complicated and depend on timing. If you do pay interest, DDs are costly because instead of your paying as soon as you have funds available, you are forced to keep the funds in your current account waiting for the DD day.

I avoid them.

If you use your credit card like a fancy cashback-earning debit card (as I do) then a DD makes the most sense as it automatically takes out the money without your intervention. One of my cards still has minimum DD on it that I never bothered changing to full, and honestly having to log on to make a manual payment is a pain... I've just not bothered to phone CS yet and have them change it.

Despite using DDs I still know where all the funds are going as I can check my bank online. I like the fact that DDs (much like a CPA, I guess) do the work for me, but I don't feel like it's out of my control.