Is 3 days enough time for direct debit?

CreditCardChris

Terry_Towelling wrote: »

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

I've chosen to pay the full amount, I'm sure it will be fine it just sounded weird only have 3 days for the funds to clear and I didn't know about bank holidays or weekends etc. I doubt they'd deliberately set it up so I incur a late fee. I'll be certain to ring them up and complain if they do!

zagfles

I've paid my cards in full by DD for decades, never had a problem. Usually payment is taken on the due date, not before. You give them a DD, they control when the payment goes out, so it's down to them to make sure it arrives on time.

chattychappy

CreditCardChris wrote: »

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

Deleted_User wrote: »

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

Yep... sign a DD and the computers do the rest. DDs are based on ancient technology - so they are not instant. You do have "control" in the sense you don't have to use them at all. If you cancel the DD and use faster payments then by all means send 7 days beforehand. It will usually arrive same day. Indeed with some of my cards I can have both the banking window and the CC window open at the same time and see CC available balance update immediately.

molerat wrote: »

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

Occasionally this has happened with faster payments too. I have made a payment to a CC and when it appears on the statement, the date is a day or two before I sent it. It appears to be around weekends/bank holidays. It's as if after a break all the faster payments are processed in one go and the bank isn't sure when it received them - so backdates the date of receipt to the last banking day.

Terry_Towelling

CreditCardChris wrote: »

I've chosen to pay the full amount, I'm sure it will be fine it just sounded weird only have 3 days for the funds to clear and I didn't know about bank holidays or weekends etc. I doubt they'd deliberately set it up so I incur a late fee. I'll be certain to ring them up and complain if they do!

The point I was trying to raise was not about being set up to incur a late-payment penalty - that won't happen unless your DD bounces. I was trying to highlight the potential for the CC company to take the DD payment 3 or 4 days before the due date and then not apply it to your account until the actual due date.

That practice would mean the CC company gets to hold your money (and everyone else who pays that way) for a few days and to make interest out of it themselves. Whilst they do that, you are losing interest on the sum that would have otherwise sat in your bank account for a few days more and the CC company is still able to charge interest between the date it takes the payment and the date it applies it.

This may be a flight of fancy on my part (happens all the time) but I wouldn't put it past some of the new entrants to adopt this approach. In your case it does seem strange that they quote a payment due date but take the DD several days earlier. What most CC companies do is quote a payment due date (already adjusted for weekends and bank hols) and take the payment on that date and apply it on that date.

Indeed, you may wish to examine your statements to see if the money leaves your bank account on day 1 and isn't applied to your CC until a few days later.

audymaccop

Is 3 days enough time for direct debit?
3rd Oct 18 at 12:33 PM
#1
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?

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