Ask Kim
Catch-22 on Credit-Card Payments
If your monthly bill is due on a Saturday or Sunday, make sure your card company accepts payments on weekends.
By Kimberly Lankford, Contributing Editor, Kiplinger's Personal Finance
April 7, 2010
I know that the new credit-card law changed the rules about when the bills are due. What happens if my due date falls on a weekend?
Your payment will now be due on the same day every month, which makes it easy to keep track of the deadline. The law also specifies that if the due date falls on a day that the card company does not process payments, you have until 5 p.m. the following business day for the issuer to post your payment without it being considered late.
Some card companies are accepting payments on weekends. For example, Capital One processes payments Monday through Saturday. So if the due date falls on a Saturday, the payment must be received by 5 p.m. that day. Sunday payments are processed on Mondays. Bank of America and Chase process payments on Saturdays, Sundays and holidays.
But here's the problem: Some banks allow you to schedule online payments only for weekdays. So even if your payment isn't due until Saturday or Sunday, you need to schedule it for Friday to avoid a late fee. To be safe, call the card company and your online bill payer to ask about their procedures. For example, Bank of America lets you make a payment online or by phone on the due date for no extra charge. Better yet, schedule your online payments so they arrive before the due date.
For more information about the new credit-card law, see FAQs on the new Credit-Card Law, More Credit-Card Fees Coming and Close a Credit-Card Account to Avoid Fees.
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Reader Comments (8)
Posted by: T. Renz at 04/07/2010 05:49:59 PM
If you filed bankruptcy, does this have to be included in your tax return in any way?
Posted by: Paul at 04/08/2010 07:45:51 AM
Yes, we all know that the credit card issuing companies are getting trickier and earlier in their "suggested" payment dates. But, why not just pay it a few days earlier -- have it done and behind you -- and go about one's business...without trying to gauge the payment a day or two for the interest "float." Interest earned on one's savings account is almost non-existent, so why not just pay it and go on.
Posted by: Chris reich at 04/08/2010 05:59:33 PM
Are the Kiplinger readers that stupid? "Better yet, schedule your online payments so they arrive before the due date." Wow, what a tip. No wonder we saw so many homes fall into foreclosure.
Posted by: Sandy at 04/09/2010 11:45:46 AM
I cannot believe one would be so irresponsible as to blame the method chosen to pay your bills ("online bill payer") as an excuse for being late. The cc companies don't give a rat's dierreire if your "online bill payer" doesn't do weekends. Pay it the old fashioned way - write a check and mail it - several days in advance! With all the many methods to pay bills today, if you still cannot get your bills paid on time, you deserve a ridiculous late payment fee. Modern technology does not give you a pass on your moral obligation to pay your bills.
Posted by: gary at 04/09/2010 11:59:53 AM
i closed some credit cards...my credit was over 700 but went below when i cancelled, my credit card balances were at the 50%, but when i would not use the cards anymore they reduced my balance making my cards almost to the limit which in turn lowered my score. if you close a credit card your score goes down. if you leave it open your balance is lowered...how did this new law help?
Posted by: TS at 04/10/2010 11:46:01 AM
Why wait until just before your payment is due? Considering the exorbitant interest rates these days, pay as early as you can. Even if you're in a tight boat financially and only make the minimum payments, you can still pay off your balance earlier, mind you by only a little, but still that's better than nothing. If you check online shortly after your statement date, find out what your minimum payment is, and pay it right then and there. You will help yourself 2 ways, one your payment will never be late, and two, the earlier you pay, it will bring your average daily balance down, which is what they calculate your finance charges on. Which means you will be charged less interest, so more of your payment will go towards your principle balance.
Posted by: Andy at 04/12/2010 09:42:19 AM
I don't think the author understands what a Catch-22 is.
Posted by: Rosemary at 04/26/2010 02:11:03 PM
We have used credit cards since the 60's. I have always paid in full EVERY TIME. For the last 10-15 years we have the balance of the bill taken out of my account. I signed up with the bank or credit card who issued credit card. I do this only with bank or credit union cards not store credit cards. I have worked in a bank and I always told the customers about this service and told them that they should at leave sign up to have the minimum taken out of an account. That way they would never be late and still have the option to pay the card off in full. A bill can be lost in the mail etc.