Credit card payments

Wild.Rover_3

Hi,

I'm not sure how to ask this question without sounding a bit naive but I would be grateful if anyone could shed some light on a situation for me please.

I bank with the Royal Bank of Scotland and have my credt card with them as well. On the 29th February I made a payment to my credit card from my current account using online banking (I've only just started to use this method which is why I've probably sat up and started to take notice!). I understand that the two systems probably don't interface in real time and that the payment may take some time to be verfied but what I do object to is when the payment finally did hit my credit card statement it showed as being paid on 4th March - I don't have an issue with the bank making money from my money but doesn't this delay mean that I will pay just that tiny bit more interest each and every time I pay my credit card?

As above any light that can be shone upon this would be most appreciated.

Cheers,


Wild Rover

CLAPTON

if you pay the CC in full each month then you will pay no interest.

Wild.Rover_3

Cheers for these replies.

Definitely on terra incognita here so forgive any bumbling language but if I don't pay the card of in full will I not be charged a few extra days interest on the amount of the statement as in effect I haven't made a payment until the 4th of March as opoposed to the 29th of February?

Also (and I'm definitely at risk of sounding naive here) is this fair? As I say I accept the two systems don't interface in real time but surely if money leaves my account on a certain day it should appear on my credit card statement on the same day (albeit retroactively if need be)? It strikes me that in effect I loose access to X amount of money for three to four days whilst someone somewhere presumably makes money on it.

Final question - can anyone tell me why in the early 21st century it still takes so long? If we were living in the 16th century I'd understand a delay of this time but in 2008?!

Wild.Rover_3

Cheers Al Mac - pretty much what I thought - I was never under the impression that they were there for my benefit though!

Do you per chance have a link to information about the instantaneous payments as I'd be interested to read more. This strikes as a bit like the electric car scenario - we all know that a fast, efficient model can be made but until it's necessary for the big car companies to do we'll be told that it can't - not much option I guess other than to go along with what we're told. Baa!

Cheers again.

King_Of_Fools

Wild.Rover wrote: »

Do you per chance have a link to information about the instantaneous payments as I'd be interested to read more.

http://news.bbc.co.uk/1/hi/business/7267406.stm

Eydon

I think the important thing here is that both current account and credit card account are with the same bank. So in effect you are transferring your money from one RBS account to another. It shouldn't take that long (although there was a weekend in between).

I know that when I pay my Barclaycard, from my Barclays current account, via online banking, then provided I do it before (I think) 5:30pm the money will hit my Barclaycard account the same day.

Stephen_Leak

Wild.Rover wrote: »

Final question - can anyone tell me why in the early 21st century it still takes so long? If we were living in the 16th century I'd understand a delay of this time but in 2008?!

Because, behind the shiny, "whizzy" facade of computers and the internet, the basic system would not be unfamiliar to anyone in a 17th Century coffee house. Roll on June.

Wild.Rover_3

Eydon wrote: »

I think the important thing here is that both current account and credit card account are with the same bank. So in effect you are transferring your money from one RBS account to another. It shouldn't take that long (although there was a weekend in between).

I know that when I pay my Barclaycard, from my Barclays current account, via online banking, then provided I do it before (I think) 5:30pm the money will hit my Barclaycard account the same day.

Hmmmm food for thought that. Think that I'll wait to see what happens when the new whizzy system is implemented but if the RBS don't pick up I may well investigate Barclays.

Stephen - I'm sure that you're right - it's just a shame that you don't even get offered a cup of Java when you pop in!

King of Fools - cheers for the link

CLAPTON

By way of example, if you normally pay about 100 per month and it is delaid by say 2 days and you're paying say 2% per month (APR of around 26%)

then the extra interest will be 100 x 2% x 2/30 =

16p per month

so in a year you lose £1.60

The best way of reducing your interest charges are on course to try to pay back more each month and clear the whole debt asap.

Wild.Rover_3

CLAPTON wrote: »

By way of example, if you normally pay about 100 per month and it is delaid by say 2 days and you're paying say 2% per month (APR of around 26%)

then the extra interest will be 100 x 2% x 2/30 =

16p per month

so in a year you lose £1.60

The best way of reducing your interest charges are on course to try to pay back more each month and clear the whole debt asap.

£1.60 - how dare they!

I see your point that it isn't really that much at all in real terms - it's just the principle of thing that niggled me a bit :rolleyes: irony is that I choose my username based on the fact that money whether in the form of loans, credit cards, over drafts or liquid cash used to run through my fingers like water - nothing worse than a reformed criminal eh!

Truth be told my credit card balance is usually pretty low anyway as all I use it for are expenses which can then take a few weeks to come through so sometimes there will be just a little bit outstanding.

Thanks again to all - tis a great site that you have here.