Missed single barclaycard payment first time ever and got hectoring letter!

derps

I think it's VISA, MasterCard, Amex etc. that get those fees. Credit card issuers don't earn anything from customers that pay their full balance every month, it's people borrowing money and accruing interest that make the banks money.

Armorica

derps wrote: »

I think it's VISA, MasterCard, Amex etc. that get those fees. Credit card issuers don't earn anything from customers that pay their full balance every month, it's people borrowing money and accruing interest that make the banks money.

That's complete nonsense - there are various types of fees in cards (but none go from the cardholder to Visa/MasterCard). (Apart from where Amex acts as a card-issuer)

reclusive46

Armorica wrote: »

That's complete nonsense - there are various types of fees in cards (but none go from the cardholder to Visa/MasterCard). (Apart from where Amex acts as a card-issuer)

Agreed. All of the fee goes to the issuer just the bank will usually pay a monthly or yearly fee to the credit card network. It works in a similar way for banks that issue Amex cards but Amex gets a percentage of the fee as opposed to a yearly fee.

safestored4

What a load of cobblers this post is. Barclaycard correctly warn you of the consequences of not making the required payment and you have a hissy fit claiming that you have had a hectoring letter about missed payments. Grow up.

littlerock

First of all I am nowhere near spent up to my c/l limit and never have been. Mostly I make a small number of purchases on my card each month, usually on Amazon to which it is linked and usually on ebooks for my kindle as I am a keen reader. I have a 4 figure c/l of several 000 so my credit is good and last month I spent £103 on barclaycard. so that left nearly all of my c/l unused.

Now I always thought Barclaycard depended for its income, not on annual fees, but interest and late payment fees being incurred by people like me, who are generally good credit risks and did not let spending get out of hand but generally manage their spending well within agreed limits. Instead, I am surprised when, after first ever default on a small balance out of a much bigger credit limit, I get a letter saying if I make one more late payment my card may be withdrawn even though I have a spotless payment record .

OH thinks this is actually due to some agreement with government to allow them to charge large late payment fees so long as they remind people who pay late of the possible consequences.

[Deleted User]

littlerock wrote: »

OH thinks this is actually due to some agreement with government to allow them to charge large late payment fees so long as they remind people who pay late of the possible consequences.

Does he really?

bengal-stripe

littlerock wrote: »

Instead, I am surprised when, after first ever default on a small balance out of a much bigger credit limit, I get a letter saying if I make one more late payment my card may be withdrawn even though I have a spotless payment record .

This is a computer-generated letter - one size fits all - which goes out to all the customers who have failed to pay their minimum in time.

But then, for sensitive souls like you, Barclaycard ought to have a special 'let us hug you' letter.

littlerock

It's all very well for the tougher minded, but my mum for example, would get quite upset if she got such a letter and start panicking about her card being withdrawn.

Plus snide comments do not really answer my main question, which is I thought Barclaycard wanted customers to build up balances and pay interest, within reason because they were the more profitable ones.

This is what it says on one leading financial analysis site: "The number one money-maker for credit card companies is interest charged on outstanding balances. .....Credit card companies also charge an assortment of lucrative fees.

The fees include:Late payment fees, Fees for exceeding your credit limit, Balance transfer fees, Cash withdrawl fees and Annual fees. Plus transaction fees. (Visa and MasterCard charge merchants about 2% of the value of every transaction billed to their credit cards, usually with a minimum per transaction. )

In total, transaction fees, late fees, over-limit fees and other types of fee account for about 33% of credit card companies' revenues in 2003. The other 67% comes from interest payments. "

As I incur hardly any of the above fees, I am worth very little to Barclaycard and I thought, naively that they might want me to generate some fees for them.

MABLE

I have had a BC for about 17 years and not once had any issues with late payments. Make my payments manually every month but as a safety net have a dd set up in case I ever forget. Also my statement date varies very little. The most is 1 day.

littlerock

Surprised to hear how little your statement date varied. Mine varies quite a lot and I phoned and asked them and they said it may be sent out anytime between 8th and 18th of the following month, and it is....