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Paying American Express in Full by DD 10 Days Early. Why?

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I don't know if this is typical of all credit cards, but I have an American Express Cash Back Credit card and pay the balance in full by Direct Debit.


BUT, paying in full means that the Direct Debit is taken 10 days earlier than the Payment Due Date.


Does anyone know how they justify this?


You would expect the simple answer to be because they are not gaining any interest, but that would be the same if I paid manually on the payment date. Also it is well known that AmEx are one of the highest transaction costs for retailers.


Anyone any ideas and is this common on other cards?


Steve.

Comments

  • eskbanker
    eskbanker Posts: 37,073 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    They're certainly not unique - NatWest crops up on here from time to time as another bank that takes full payment DDs something like ten days ahead of due dates, and others also have some lead time. They won't feel they have to justify it as such, their stance will probably be "that's the way it is, like it or lump it"....
  • seredrup wrote: »
    I don't know if this is typical of all credit cards, but I have an American Express Cash Back Credit card and pay the balance in full by Direct Debit.

    Nice, I have the Gold Rewards Card.
    seredrup wrote: »
    BUT, paying in full means that the Direct Debit is taken 10 days earlier than the Payment Due Date.

    Happens with my card too. I think this is just the way with Amex, and perhaps has something to do with their history? They used to be just a charge card company.
    seredrup wrote: »
    You would expect the simple answer to be because they are not gaining any interest, but that would be the same if I paid manually on the payment date. Also it is well known that AmEx are one of the highest transaction costs for retailers.

    It's just the Amex way. The transaction costs I believe are being lowered at the moment, I think that's why there's been a flurry of new merchants accepting it recently.
    seredrup wrote: »
    Anyone any ideas and is this common on other cards?

    It's not common, never owned a credit card that did it. Amex of course isn't like other card! :rotfl:
  • Amex do this with both their charge and credit cards. It's very annoying. I've stopped using direct debit and just pay with my debit card.
  • In the old days, although Amex (chargecards) had a "due date", in practice they would never apply late charges provided they received payment before the next statement.

    Not sure if that is still the case, but I've just received my first statement after reapplying for a chargecard and they seem to only give me 14 days to pay (whether or not by DD).
  • System
    System Posts: 178,346 Community Admin
    10,000 Posts Photogenic Name Dropper
    In the old days, although Amex (chargecards) had a "due date", in practice they would never apply late charges provided they received payment before the next statement.

    Not sure if that is still the case, but I've just received my first statement after reapplying for a chargecard and they seem to only give me 14 days to pay (whether or not by DD).

    It's £12 and a late payment marker now - AFAIK

    I use a future dated bill payment - usually by the business day before the due date. Direct Debit's are more hassle than anything and only use when mandatory/ a discount is involved.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Heng_Leng wrote: »
    Direct Debit's are more hassle than anything and only use when mandatory/ a discount is involved.

    Agreed, I don't do DDs.
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