Mbna visa credit card payment due date

OceanSound

Before my last statement was issued (24 August 2018) I setup a direct debit and received a letter from MBNA to say the Direct debit has been setup.

That letter is dated 20 August 2018. The statement that followed says:

Your payment of £30.46 will be collected from your nominated bank by Direct Debit on or after 18/09/18.

The statement also says 'Payment due date':

18 Sep 18

My question is, if the Direct Debit is collected after 18 September, would I be charged a late fee?

If so, would it make sense to pay the minimum payment today (so it hits the account tomorrow), and not take a gamble, eventhough, the web interface (and the monthly statement) clearly indicates the Direct Debit is in place.

Am I overthinking this?

littleredhen

Yes you would be charged a late fee I would change the date to a couple of days before for next month but just pay the minimum payment today to cover all eventualities

I thought you would be charged hence my comment but OP says no so I am bowing to their superior knowledge!

[Deleted User]

No. You won't be charged a late fee as the payment collection is now in their hands.

Dobbibill

This is another good reason to set up a DD, they will take it at the last minute meaning the money is in your account longer (hopefully earning interest). When a DD is set up you are moving the responsibility of taking the funds to the CC provider, as long as you have the available funds, then you can sit back and let them do their thing.

You will not get a late payment fee. They are taking it on the due date.

OceanSound

Dobbibill wrote: »

This is another good reason to set up a DD, they will take it at the last minute meaning the money is in your account longer (hopefully earning interest). When a DD is set up you are moving the responsibility of taking the funds to the CC provider, as long as you have the available funds, then you can sit back and let them do their thing.

You will not get a late payment fee. They are taking it on the due date.

This particular DD is one of the three direct debits that come out of (one of) my Tesco Current accounts which is always topped-up at £3000.
I've been checking the Tesco current account daily past few days thinking the DD may have gone out. (if it has I would need to top up tesco current account so it becomes £3000 again). However, just realised there is no need to keep checking because I had already setup an alert on Tesco bank website. If balance drops below £2999.00 send an email to this effect.

I've never actually seen the alert because always topped-up accounts before the alert is triggered (believe it's triggered the morning after the event).

Terry_Towelling

You are right, there is no need to keep checking because of the SMS alert you have set up.

However, when you get your CC statement and it tells you the DDR date, possibly the easiest way to handle the top-up of the Tesco account is to immediately schedule a one-off payment from wherever your source funds are held to the Tesco account for the same day as the Direct Debit is due to be taken.

One other thing to beware of is that the DDR for a CC payment will 'move about' by a few days each month. You need to take care that it doesn't move outside the current Tesco Bank Account statement month, or you may lose interest that month. That happened to me - but I've got it all sorted now.

OceanSound

Payment went out slap bang on 18 September.