Direct Debit for Credit Card

RG2015

If I set up a direct debit to pay my NatWest credit card I have two choices as follows:

• Minimum/fixed amount – payment is claimed 25 calendar days from statement date or shortly afterwards
• Full amount – payment is claimed 15 calendar days from statement date or shortly afterwards

I do not know if all credit cards have this 10 day differential but it does give the bank access to the customer's money 10 days earlier than necessary. In my case a DD for the full amount would be taken a day before my pay day and I would also lose 10 days worth of interest. Consequently, I always set up a faster payment for the due date on the day I get my statement.

Am I missing something or are NatWest just profiteering at the expense of the customer?

molerat

The majority of cards do not have that clause but it seems they are profiteering as, unless on a promotion, those paying minimum payments are paying interest so the bank gain and those paying in full are not so again the bank gain.

keithmac

None of my cards have that disparity, I set up min payment by DD to avoid any chance if missing a payment then overpay by BACS to bring the balance down.

RG2015

Thanks for your replies. Does this mean that other banks offer a direct debit set up that collects the full amount on the due date and not 10 days early?

Nebulous2

Is the due date the later one? So you could still make a manual payment a bit later?

I usually set minimum by DD and pay the full amount manually unless it's on a promotion. That way I don't miss it.

If it impacts you in that way it might be worth ditching them. You could ask to change the statement date, but that can bring further complications.

RG2015

Nebulous2 wrote: »

Is the due date the later one? So you could still make a manual payment a bit later?

I usually set minimum by DD and pay the full amount manually unless it's on a promotion. That way I don't miss it.

If it impacts you in that way it might be worth ditching them. You could ask to change the statement date, but that can bring further complications.

Thanks for your reply but I am not being impacted adversely. I always pay the full balance on the due date by setting up a faster payment 25 days earlier on my statement date.

If I could get a DD for the full payment to be taken on the due date I would do this but there is no point in getting it paid 10 days early just for the sake of automating the process.

joedenise

That's awful. Both my CCs are on DD for the full amount and get taken on the due date but not before. If it's a weekend when it's due then it will be taken on the Monday but they still don't charge interest.

Denise