Is 3 days enough time for direct debit?

CreditCardChris

I got my statement today and it says my payment is due on the 28th of October and the direct debit will be taken on the 25th of October. This seems to be cutting it a bit close or is this perfectly ok?

The 25th is also a Thursday, what happens if they don't receive it until Monday which would be the 29th? Should I phone them up and see if they can set my direct debit at an earlier date so I have at least a week for the direct debit to clear?

Willing2Learn

No. As long as you have instructed the card company to take the money due by DD, then everything will be alright and you won't face any late payment charges...

CreditCardChris

Willing2Learn wrote: »

No. As long as you have instructed the card company to take the money due by DD, then everything will be alright and you won't face any late payment charges...

Yeah I've set up the direct debit to take the full payment and it will be taken on the 25th of October, I was just concerned that 3 days doesn't seem like enough time for the payment to clear. Also on the website it says

"A payment can take up to 5 working days to reach us and be processed, so please plan for this".

I just phoned them anyway and was told it will clear in 3 days even on a weekend or bank holiday so I guess i'm just going to have to take their word for it. I'd much prefer the payment be taken 7 days before it's due or something to be honest.

molerat

On many occasions my DDs have been taken after the due date but have been credited on the due date with no consequences

[Deleted User]

CreditCardChris wrote: »

I'd much prefer the payment be taken 7 days before it's due or something to be honest.

You may prefer it, but it's not in your control.

Just enjoy the extra interest you're earning, however little it may be.

CreditCardChris

Deleted_User wrote: »

You may prefer it, but it's not in your control.

Just enjoy the extra interest you're earning, however little it may be.

OK then I guess it's fine.

PRAISETHESUN

You are protected under the direct debit guarantee if anything goes wrong so I wouldn't worry - just make sure you have money in the account on the day the payment is going to be taken, even if it is a weekend

T-G-C

As long as the funds are available, the Direct Debit will cover you. Most automated payment systems credit the customer's account sooner than funds capture, to ensure it isn't noted down as late payment, as someone else has experienced.

This is not a risk for them, because in the event that someone's account is credited but then the funds are not honoured upon capture, it goes down as a reversal / returned payment and on top of being penalised for missed or late payment, another charge for it being reversed / returned is slapped on too. In addition to the bank charges for a bounced Direct Debit.

In essence, ensure the funds are in the bank before, during and after the due date to remain protected from the scenario you have mentioned.

Chino

PRAISETHESUN wrote: »

You are protected under the direct debit guarantee if anything goes wrong so I wouldn't worry

In what way is the Direct Debit Guarantee relevant to the OP's concern?https://www.directdebit.co.uk/DirectDebitExplained/Pages/DirectDebitGuarantee.aspx

Terry_Towelling

Stop worrying! It will be fine. Just make sure you have enough cleared funds on the date and have provided the correct banking details.

What you may like to investigate (if you aren't a full-payer) is whether a payment taken from your bank on any given date is then 'held' by the card company until the payment due date. That would cause you to incur a bit more interest on your debt and you'd also lose out on credit interest if your current account is one that pays it.

Because you seem to have a card provider that takes payments before the due date, that could be a risk to you (albeit probably quite a small one).

My card company tells me the payment due date and takes the money and applies it on that date - which I suspect most card companies do. This month it is 26/10

redpete

You've told the credit card company you want them to take the full amount by DD to clear the balance. It's up to them to set it up and make sure it happens at the right time, not your responsibility.