Frequently Asked Questions
[ New Search ]
FILE UPDATED TIME 10/08/2010 11:16:15 AM
TOTAL READ COUNT 2556
How can I make sure my credit card payment isn't late?
When you make your credit card payment, there are certain situations that can affect how quickly your payment is processed. For example, if you aren't making your payment directly to your credit card issuer, it can take some time for the payment to reach the issuer. Some financial institutions consider that a bill is paid on the date they receive the payment, and this can sometimes take up to three days.
Another example is that a financial institution might treat a payment that you make after 3:00 p.m. as being paid the next business day.
It's a good idea to keep 'delivery time' in mind so that you're sure your payment is received by the due date.
To help you pay your bills on time, here are some general guidelines on the time it takes to process various types of payments. No matter how you pay, if the payment due date falls on a weekend or holiday, payments made on the next business day have to be accepted as having been made by the due date.
If you pay your bill by mailing a cheque, allow four to five business days (Monday to Friday, except for statutory holidays) for your bill payment to reach the credit card issuer. The issuer will usually deposit your cheque on the date they receive it, and consider that you have paid it on that date (unless it is a post-dated cheque).
At a branch
of the issuer
If you pay by cash (by making a withdrawal from your account) or by cheque, the teller will stamp your statement and payment stub (the tear-off portion of your statement) with the date on which you made the payment. They will usually consider that your bill was paid on that date. A financial institution might treat a payment that you make after 3:00 p.m. as being paid the next business day.
At an automated banking machine
of the issuer
If you don't have to deposit the stub (for example, if your bill payments automatically appear on the screen), you will usually be considered to have made your payment that same day. A financial institution might treat a payment that you make after 3:00 p.m. as being paid the next business day.
If you deposit your payment at an automated banking machine of your credit card issuer and you put the stub in an envelope, you may be considered to have made your payment on the next business day or, in some cases, two business days later, because branch staff require time to empty the ABMs and verify the contents of the envelopes.
By telephone or on the Internet
of the issuer
If you make a payment during business hours (generally before 3:00 p.m.), you are usually considered to have made your bill payment on that date. A financial institution might treat a payment that you make after 3:00 p.m. as being paid the next business day..
If you want to pay your credit card bill by pre-authorized debit, you must sign a pre-authorized debit agreement that authorizes the credit card issuer to withdraw funds directly from your bank account.
This agreement outlines the terms and conditions for any withdrawals from your account. Among other things, it indicates:
- the amount to be withdrawn each month, and whether it is a fixed amount or whether it can vary, depending on your credit card balance (the total balance you owe, or the minimum payment required); and
- the date on which the amount will be taken from your account
Your bill payment will be made on the due date indicated on your statement, since the credit card issuer withdraws the funds directly from your bank account on that day.
Be sure you have enough money in your account to cover the pre-authorized debit, or else you will likely have to pay NSF charges.
For more information, contact your financial institution directly, or consult your statement or your cardholder agreement.
Classification of this FAQ: