Bill Payment Delays Over Weekend

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Jul 12th, 2021 11:52 am

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Jul 3rd, 2021 12:06 pm

trevorlinden3000 [OP]: Jr. Member; Feb 1, 2015; 131 posts; 51 upvotes; Vancouver, BC

Jul 3rd, 2021 12:06 pm

Bill Payment Delays Over Weekend

Most people on this forum probably know this already (heck, I did too), but please make sure you make large payments (i.e. property tax) via online banking a few days early to avoid late penalties.

Stupid me, kept on pushing back my property tax payment and so on the last possible day (i.e. 8:58 pm Friday) it occurred to me that I still haven't paid. So of course after I set everything up and paid, it was already July 2nd 9:05 pm PST (already July 3rd according to the bank) and my bank says the transaction date won't be until July 5th. Now I'm probably stuck with a 5% penalty.

I spend all this time on RFD saving a buck here and a buck there and end up having to pay hundreds in late payment penalty due to my own stupidity.

/PSA

34 replies

Jul 3rd, 2021 12:08 pm

smartie: Deal Guru; Dec 5, 2006; 14839 posts; 10426 upvotes; Markham

Jul 3rd, 2021 12:08 pm

Payment date is when you pay, not when they receive

+1

Jul 3rd, 2021 12:23 pm

trevorlinden3000 [OP]: Jr. Member; Feb 1, 2015; 131 posts; 51 upvotes; Vancouver, BC

Jul 3rd, 2021 12:23 pm

I hope you are right @smartie but I have had this happened before with bill payments that they (Fido) only count when they receive the money.

Also, according to the bank the bill was paid on July 3rd (EST) not July 2nd (PST)

Jul 3rd, 2021 2:28 pm

ml88888888: Deal Fanatic; Jan 19, 2017; 9041 posts; 5386 upvotes

Jul 3rd, 2021 2:28 pm

trevorlinden3000 wrote: ↑ I hope you are right @smartie but I have had this happened before with bill payments that they (Fido) only count when they receive the money. Also, according to the bank the bill was paid on July 3rd (EST) not July 2nd (PST)

Most banks have 6 pm cut off time for the current business day transaction. Also most cities have June 30 as the due date for property tax.

Jul 3rd, 2021 3:12 pm

cgtlky: Deal Fanatic; Jan 31, 2006; 8352 posts; 2552 upvotes; Toronto

Jul 3rd, 2021 3:12 pm

smartie wrote: ↑ Payment date is when you pay, not when they receive

Not always. If this is true, then why bank posted it takes 3 days for the payee to receives the fund. ?

Jul 3rd, 2021 3:26 pm

smartie: Deal Guru; Dec 5, 2006; 14839 posts; 10426 upvotes; Markham

Jul 3rd, 2021 3:26 pm

cgtlky wrote: ↑ Not always. If this is true, then why bank posted it takes 3 days for the payee to receives the fund. ?

Not sure what do you mean. Yes, it could take 3 days to receive the payment

Jul 3rd, 2021 3:28 pm

joshnet: Deal Addict; Jan 16, 2007; 1941 posts; 2348 upvotes; New Brunswick

Jul 3rd, 2021 3:28 pm

The bill payment when received by the payee includes the date it was initiated, and most treat that as the date of which it was paid. Some may not and instead treat the actual received date. I think I've encountered that once or twice, I can't recall the bill payee, but it's rare. The financial institutions probably have the language to cover those situations just in case.

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+1

Jul 3rd, 2021 3:30 pm

robsaw: Deal Addict; May 16, 2017; 2624 posts; 3469 upvotes

Jul 3rd, 2021 3:30 pm

smartie wrote: ↑ Payment date is when you pay, not when they receive

Definitely not a universal truth. At best it is when the FI transacts the payment, which may be the next business day depending upon when the customer initiates payment. At worst, may only be when the payment is posted at the receiving organization. The payee sets the payment rules not the payor.

For BC property taxes the tax notice specifically states "transaction date" as the accepted date of payment and also specifically warns about FI cutoff times for outgoing payment processing.

While many FIs, particularly for credit card payments from the same FI, will deem payments to be made on the "transaction date" almost all the T's&C's require actual "receipt" of payment.

+2

Jul 3rd, 2021 3:34 pm

smartie: Deal Guru; Dec 5, 2006; 14839 posts; 10426 upvotes; Markham

Jul 3rd, 2021 3:34 pm

robsaw wrote: ↑ Definitely not a universal truth. At best it is when the FI transacts the payment, which may be the next business day depending upon when the customer initiates payment. At worst, may only be when the payment is posted at the receiving organization. The payee sets the payment rules not the payor.

For BC property taxes the tax notice specifically states "transaction date" as the accepted date of payment and also specifically warns about FI cutoff times for outgoing payment processing.

While many FIs, particularly for credit card payments from the same FI, will deem payments to be made on the "transaction date" almost all the T's&C's require actual "receipt" of payment.

Probably not true for all then. When I paid my credit card, even they received a couple days later due to weekend or holiday, i was never charged interest

Jul 3rd, 2021 4:40 pm

ml88888888: Deal Fanatic; Jan 19, 2017; 9041 posts; 5386 upvotes

Jul 3rd, 2021 4:40 pm

smartie wrote: ↑ Not sure what do you mean. Yes, it could take 3 days to receive the payment

Even though the payee may use the payment date to determine if your payment is late or not, it might still charge interest if your payment has not been received in time when the next bill is generated. I.e. if your utility bill has due date of July 2 and you paid online during the business hour of July 2. If the next month’s utility bill is generated on July 5 and your payment is not received until July 6, you will be charged interest for late payment because when the next month’s bill is generated on July 5, there is no payment included. Even though the payment was received on July 6, they won’t re-generate another monthly statement to include the ‘late’ payment. This happened to me before.

+1

Jul 3rd, 2021 5:47 pm

trevorlinden3000 [OP]: Jr. Member; Feb 1, 2015; 131 posts; 51 upvotes; Vancouver, BC

Jul 3rd, 2021 5:47 pm

robsaw wrote: ↑ Definitely not a universal truth. At best it is when the FI transacts the payment, which may be the next business day depending upon when the customer initiates payment. At worst, may only be when the payment is posted at the receiving organization. The payee sets the payment rules not the payor.

For BC property taxes the tax notice specifically states "transaction date" as the accepted date of payment and also specifically warns about FI cutoff times for outgoing payment processing.

While many FIs, particularly for credit card payments from the same FI, will deem payments to be made on the "transaction date" almost all the T's&C's require actual "receipt" of payment.

Are you able to please clarify? So in my situation, what is my transaction date? July 2nd, 9 PM PST?

Jul 3rd, 2021 6:36 pm

tofinoguy: Deal Addict; Sep 5, 2005; 2013 posts; 2840 upvotes; Victoria

Jul 3rd, 2021 6:36 pm

trevorlinden3000 wrote: ↑ Are you able to please clarify? So in my situation, what is my transaction date? July 2nd, 9 PM PST?

Transaction date is generally the date that shows on your bank statement.

+1

Jul 3rd, 2021 7:21 pm

georvu: Deal Fanatic; Feb 4, 2015; 9549 posts; 5876 upvotes; Canada, Eh!!

Jul 3rd, 2021 7:21 pm

Use Canadian Tire credit card to pay... earn cash back and payments seem to post faster then bank's online bill pay.

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2017,2018: BOC raised rates 5 times and MCAP raised its prime next day each time.
2020: BOC dropped rates 3 times and MCAP waited to drop its prime to include all 3 drops.

+1

Jul 3rd, 2021 8:10 pm

mkl38s: Deal Fanatic; Jan 21, 2014; 7750 posts; 5378 upvotes

Jul 3rd, 2021 8:10 pm

georvu wrote: ↑ Use Canadian Tire credit card to pay... earn cash back and payments seem to post faster then bank's online bill pay.

^ this. When you use Triangle CC, you can preset the date you pay and because it's credit card, I don't mind setting like a week before due date, and it's usually posted into the account a day later. Do that every time I receive the bill so will never forget

Jul 3rd, 2021 9:58 pm

trevorlinden3000 [OP]: Jr. Member; Feb 1, 2015; 131 posts; 51 upvotes; Vancouver, BC

Jul 3rd, 2021 9:58 pm

Update: I already see the penalty posted on my account. The city sure wasted no time on this one.

Jul 3rd, 2021 10:50 pm

rychicken: Jr. Member; Feb 6, 2019; 198 posts; 286 upvotes

Jul 3rd, 2021 10:50 pm

trevorlinden3000 wrote: ↑ Update: I already see the penalty posted on my account. The city sure wasted no time on this one.

has your payment showed up on the tax account?

Jul 3rd, 2021 11:05 pm

Platypus: Sr. Member; Jun 18, 2004; 688 posts; 564 upvotes; Vancouver Island

Jul 3rd, 2021 11:05 pm

ml88888888 wrote: ↑ Most banks have 6 pm cut off time for the current business day transaction. Also most cities have June 30 as the due date for property tax.

This year, property taxes in most BC cities were due July 2.
The city has to receive the payment before the due date by end of business day. If paying by mail or through bill payment, one needs to allow extra time

Jul 3rd, 2021 11:27 pm

trevorlinden3000 [OP]: Jr. Member; Feb 1, 2015; 131 posts; 51 upvotes; Vancouver, BC

Jul 3rd, 2021 11:27 pm

rychicken wrote: ↑ has your payment showed up on the tax account?

No, it hasn't.

Jul 4th, 2021 1:06 am

UrbanPoet: Deal Expert; Jan 27, 2004; 51965 posts; 16727 upvotes; ONTARIO

Jul 4th, 2021 1:06 am

Funny thing is... Some billers account for this (most do) but not all.
In my experience dealing with bill payments as a teller for old skool people who think doing it in person makes it 'faster'...

Amex is picky! So you gotta do a few days ahead... Lots of people complain.
Property tax is picky!!! Do it a few days ahead...
Credit Card companies, not that picky. Do it on the exact day its due and youre fine.
MBNA and CITI cards act kinda funny... They charge interest, then credit it back later.
CRA, once in a while someone will say "omg I paid it exactly on the due date and thye said I never paid.". They sort it out later... But they end up getting a letter saying they're late! Usually they ignore them and it goes away because the payment is there eventually... But most people call in because its taxes, and you don't mess with the government.

All my threads are upvote parties! All positive vibe post get upvotes.

+1

Jul 4th, 2021 2:32 am

Spinner: Deal Fanatic; Sep 19, 2002; 7063 posts; 7703 upvotes; Vancouver

Jul 4th, 2021 2:32 am

trevorlinden3000 wrote: ↑ Are you able to please clarify? So in my situation, what is my transaction date? July 2nd, 9 PM PST?

Banks run on eastern time, so 9 p.m. in Vancouver is effectively next business day (July 5).

Some creditors (like the city) are very picky about the payment date. Others like credit card issuers and utilities don't mind you paying a day or two late without penalty.

The rule of thumb is to always perform the transaction before 8:59 p.m. if you want it dated the same day.

+2

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