Personal Finance

pay a VISA bill on due date through online banking - transaction date late charge???

  • Last Updated:
  • Apr 17th, 2018 4:55 pm
Deal Addict
Aug 30, 2011
3077 posts
842 upvotes
Ottawa
SamInfinity wrote:
Mar 30th, 2013 1:41 am
Never had a problem before, but you should be mindful of business days versus calendar days. I always pay the transaction off the last business day possible. So let's say the payment due date lands on a saturday, I would pay it off the friday instead. Even though it's all computerized, the system may push a payment for the monday if it's paid on the saturday. So watch out for holidays and weekends!
^ this is what I do too. Why risk the nuisance of an interest charge. The only thing annoying about the delay is that it comes out of my account instantly, but doesn't get "paid" until the next business day.
Deal Addict
Sep 24, 2007
3691 posts
1083 upvotes
Ontario
also you can make the minimum payment now to avoid a late payment charge, then pay off the remainder when you get paid, there will be interest but it shouldn't be much...
Deal Fanatic
User avatar
Mar 20, 2009
8862 posts
2671 upvotes
Vancouver
It does take 1-2 business days currently for your payment to reach the destination, so technically the credit card company would be correct to say that your payment was late if it was initiated on the due date. There's really no reason why instant payments shouldn't be credited the same day except for the inertia of Canadian banks - why bother to make improvements when there's no incentive?

However most banks and other credit card companies (not just Amex) do allow a few days grace in this situation. I've had it happen before by accident, and never been charged interest. If the payment was coming from an account at the same bank, and the bank tried to charge me interest because the payment was delayed within their own computer system, I wouldn't accept that. Between banks they might have a shred of justification, but not within the same bank.
Deal Addict
User avatar
Nov 28, 2007
2685 posts
648 upvotes
Whitehorse, YT
Truemana wrote:
Mar 30th, 2013 5:50 am
Nope, do it all the time with RBC. I pay my RBC visa, MBNA MC, Amex, and Capital One MC all in full on the exact due date. Never received a late payment charge. With RBC, if you set up automatic full payments for credit cards, they apply the payment credit on the exact due date and then the amount from your chequing comes out a day or so later.
Posting from Germany I see. Try making a payment after 21:00 h in the Pacific time zone.

Canada Revenue Agency notified me that if I paid my amount owing by a certain date I would not be charged interest. I paid on-line via BMO on that date ... and before midnight on the centre of Canada's banking universe clock ... and still got dinged $12.xx interest. No complaints though ... I just tried to be too cheap.
Deal Addict
User avatar
Apr 1, 2006
3370 posts
340 upvotes
Brisbane
Marzipan wrote:
Mar 31st, 2013 11:16 am
Posting from Germany I see. Try making a payment after 21:00 h in the Pacific time zone.

Canada Revenue Agency notified me that if I paid my amount owing by a certain date I would not be charged interest. I paid on-line via BMO on that date ... and before midnight on the centre of Canada's banking universe clock ... and still got dinged $12.xx interest. No complaints though ... I just tried to be too cheap.
Lived in Canada until Sept 2012 and paid all my credit card bills on the exact day they were due for three years while I paid off my student loans and minimized interest costs on that. I paid a lot of attention to where I paid interest.

Sorry, yes. There is a caveat in the situation you've described. I always set up an automated post dated payment in online banking, so it always made the payment in the early morning hours of the due date, not hours before the deadline. The easy solution is to read your statement balance soon after its released and set up a post dated payment ever billing cycle.
Deal Addict
User avatar
Feb 22, 2013
2028 posts
171 upvotes
Ottawa, ON
gtown324 wrote:
Mar 29th, 2013 9:52 pm
I am wondering if i will get a late payment charge if i have a bill due on 11 april and i pay it through my online banking on april 11 (posted date) if it goes through on the 13th(tranasction Date) lets say will i receive a late Payment charge??

Thanks In advance

It usually takes 2-4 business days for it to go through, so I'd think yes, you would be charged.
Jr. Member
Oct 11, 2016
162 posts
22 upvotes
CWatson87 wrote:
Apr 2nd, 2013 11:16 am
It usually takes 2-4 business days for it to go through, so I'd think yes, you would be charged.
So then if you do automatic payment, the money leaves your account on the due date....as the cc or payee withdraws from your account on the due date.....in fact most automatic withdrawals work that way (eg utilities, cable, internet, etc)....they don't withdraw before the due date........based on that, if you make the payment manually, from your online banking app or website, generally before 6pm on the due date, it should be the same result.....and therefore you shouldn't be charged.
Sr. Member
Nov 8, 2017
749 posts
334 upvotes
I always pay a few business days before due date just to be on the safe side. I'd rather not be penny wise but pound foolish
Deal Fanatic
User avatar
Mar 23, 2008
7986 posts
4721 upvotes
Edmonton
Keep in mind this is a 5 year old thread-surrection...

C
Member
Jan 4, 2017
320 posts
157 upvotes
No, it's the transaction date that matters and not the posted date, as any institution could take any number of days to actually post a transaction at no fault of anyone else but their own. What would be the point of having a separate date for transaction date vs posted date if you were responsible for their processing times? I can understand the 'cover your ass aspect' in that people just pay a few days early just in case to avoid any hassle, certainly. But as far as the transaction date is not later than the due date there's never an issue.

Initiating payments from Tangerine and from TD, over a considerable period of time, I've made bill payments to mastercard/via to National Bank, Canadian Tire, Capital One, TD, Tangerine BMO, Scotiabank, MBNA. I haven't been dinged, so I don't think there's an issue, except for any unusual circumstances.

One time, I legitimately made a late payment due to my own miscalculation, with BMO. Even though the "late" portion was only $261, and only by one day - they still billed me the interest charges for the full amount of the bill, which worked out to over $50! I called to ask as I wasn't sure if that could be right, but the lady was kind and explained it all, and even credited back the interest charges without my asking for it (sweet!), even though it was really my mistake.

I would be very curious to see any documented proof demonstrating a *transaction date* paid in full on the due date having any late or interest charges. So far it's unheard of for me.

Edit: just checked with the last payment i made from TD to Scotia and indeed, payment was initiated from TD on April 12, and although it only just now posted to my Scotia account, Scotia has it correctly tagged as April 12.
Deal Addict
User avatar
Jan 31, 2006
4927 posts
687 upvotes
Toronto
CWatson87 wrote:
Apr 2nd, 2013 11:16 am
It usually takes 2-4 business days for it to go through, so I'd think yes, you would be charged.
If you pay cc on the due date and source coming from the same bank as the cc issuer they will postmark it same date and not 2 - 4 days
Member
May 16, 2017
453 posts
476 upvotes
zcypher wrote:
Apr 17th, 2018 2:10 am
No, it's the transaction date that matters and not the posted date, as any institution could take any number of days to actually post a transaction at no fault of anyone else but their own. What would be the point of having a separate date for transaction date vs posted date if you were responsible for their processing times? I can understand the 'cover your ass aspect' in that people just pay a few days early just in case to avoid any hassle, certainly. But as far as the transaction date is not later than the due date there's never an issue.
...
True - but that is the processing time of the RECEIVING institution. According to the terms and conditions, the processing time through the electronics payment system between financial institutions is NOT the receiving institutions problem. Now, it seems almost universally that the transaction date (and hence payment made recognition) will match the initiation of the electronic payment but that certainly isn't part of the T's & C's of any credit-card agreement, just like the postmark date isn't valid as payment date for anyone except CRA and perhaps a few other gov't agencies.
Member
Jan 4, 2017
320 posts
157 upvotes
robsaw wrote:
Apr 17th, 2018 11:51 am
True - but that is the processing time of the RECEIVING institution. According to the terms and conditions, the processing time through the electronics payment system between financial institutions is NOT the receiving institutions problem. Now, it seems almost universally that the transaction date (and hence payment made recognition) will match the initiation of the electronic payment but that certainly isn't part of the T's & C's of any credit-card agreement, just like the postmark date isn't valid as payment date for anyone except CRA and perhaps a few other gov't agencies.
Fair enough. Still, it would be interesting to hear the cc company's take on it. I looked over the cardholder agreement from TD, and they use terms like "make your payment on or before..." and "received by", but there is no mention of anything that differentiates between transaction dates and posting dates. Although, they did include this reasonable snippet:

"If the Payment Due Date falls on a Saturday, Sunday or holiday in Canada, we will extend the Payment Due Date to the following business day."

Top