Personal Finance

Credit card payment due dates, payments and interests

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  • Jan 24th, 2019 7:18 pm
Deal Fanatic
Jun 22, 2004
6577 posts
173 upvotes

Credit card payment due dates, payments and interests

A former co-worker of mine who works as a para-legal told me one time, but I have never come across any information to validate what she said about credit card payment due dates, payments, and interests.

There have been court cases that credit card companies must accept the electronic date/time stamp as the day you made payment when doing online banking. This is in contrast to many financial institutions who warn you to set up your transaction 2-5 days before your due date. I personally know people who do the transaction on the day it's due and not incur any interests. Some also don't program it in advance and do so on the day.

Additionally, I was also told that you're allowed one extra day grace past your due date.

Does anyone have any personal knowledge or references regarding this?
9 replies
Deal Addict
User avatar
Dec 4, 2007
3947 posts
1603 upvotes
Quebec
it really depend on the credit provider.

thats why they suggest us to make the paiment 3-5 days prior the limit date.

they say its your responsability to pay it prior that date, if you choose to do it the last day and it take more than 24h to process, u will be charged the interest since the day you make the purchase.
Deal Fanatic
Jun 22, 2004
6577 posts
173 upvotes
That's what they say. However I'm wondering if there's legislation to the contrary which I've been told is the case.
Deal Addict
Oct 13, 2014
2025 posts
1281 upvotes
Just Moved To Somewh…
The only legislation I am aware of is when the payment dates fall on a holiday, or weekend. I will leave it up to the OP to research for the exact legislation but here is a quote from the Financial Consumer Agency of Canada, federally regulated:

Credit card payments are processed during business days from Monday to Friday. If a payment is due on a weekend or a holiday, you can make your payment the following business day. This will count as being paid on time.
https://www.canada.ca/en/financial-cons ... -card.html
“Before one can have a Clue they must first accumulate 10 Inklings. That said, all it takes is one bad post and you erase all Inklings & Clues accumulated'"
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2967 upvotes
Interesting dichotomy between this thread and this post from a thread about financial planning.

Interesting to see the different approaches. This thread is about maximizing cash on hand until the very last minute and the other one is about getting rid of it in favour of the credit card company as fast as possible. Just thought it was interesting how people have such wildly different outlooks on this kind of thing.
Deal Fanatic
Feb 15, 2006
8675 posts
3139 upvotes
Toronto
It used to be only Amex I'd pay 1-2 days earlier. But Amex now allows you to set up payment on their website, on the due date.

For everything else I always pay on the due date. That is, all visa, master card, utility bills, everything. Never had problem.

Some others argue you need to pay x days in advance and do so, it's up to them to pay earlier if they want to. For me, I don't pay my money out earlier than I have to.,
Member
Jan 4, 2017
347 posts
209 upvotes
Dealing with corporate red tape can be a frustrating waste of time, so I see these things more as a cover your butt type thing and don't worry about the nuances too much. People pay a few days early for peace of mind just in case there's a delay for any reason. When I make payments to credit card bills, I can see a transaction date and a posted date. Every credit card account I have (>10) has always honoured the transaction date of the payment. The same thing is seen when my auto-pay payments are processed - the transaction date is equal to the due date, and I only see the payment withdrawn from my bank account a couple days later.

I have had some instances where accounts notified me that the payment was past-due because of their own delay in processing the payment that was in fact dispensed on time (on the due date). They still honoured the transaction date, no penalties/fees/interest incurred at all. I didn't have to contact them or anything. So for me the topic is a non-issue entirely, but it would be interesting to hear if people have actually had bad experiences about any bank or company being inflexible or unreasonable about that. Maybe I am biased because 99.999% of my transactions are electronic, and paying a bit ahead is more important if using snail mail?
Deal Addict
User avatar
Dec 24, 2007
1317 posts
1458 upvotes
BC
If you pay by snail mail, it might take some time to process but with electronic payments in Canada, it's instantaneous unless your bank has a technical problem and this can happen. I just pay it a day early so I don't have to deal with any delay problems. What difference does a day of interest make overall when you earn practically nothing in a chequing account?

If you spend $50,000 a year, a day of interest at 1% = 5000/365 = $1.37....Whoopie, you save maybe a cup of coffee at McDonald's.
Deal Addict
Nov 8, 2017
1418 posts
779 upvotes
I just pay 5 days before due date, whether that falls on a weekend, holiday, or week day. It's not like I need that $ right up to the due date...im not making a living picking cans
Deal Fanatic
Jun 22, 2004
6577 posts
173 upvotes
zcypher wrote: I have had some instances where accounts notified me that the payment was past-due because of their own delay in processing the payment that was in fact dispensed on time (on the due date). They still honoured the transaction date, no penalties/fees/interest incurred at all. I didn't have to contact them or anything. So for me the topic is a non-issue entirely, but it would be interesting to hear if people have actually had bad experiences about any bank or company being inflexible or unreasonable about that. Maybe I am biased because 99.999% of my transactions are electronic, and paying a bit ahead is more important if using snail mail?
Actually, I bring this up because recently I had an issue with BMO. I went in and paid my US M/C in person at my local BMO branch on the due date It was around 4 PM Pacific time (8 PM Eastern). I got dinged interest charges which I disputed as I had the receipt showing it was paid on the due date.

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