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Double check credit card payments!
Old 05-11-2013, 11:58 AM   #1
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Double check credit card payments!

Well, I screwed up. I made a typo and paid $1117 instead of $1177 on a credit card bill. My next bill shows $24 in interest charges, 12 days later. It turns out that interest is being charged on the entire bill, not just the $60 difference between what I paid and should have paid. The financial institution has agreed to reverse the interest charge as I am a longstanding customer, but it just goes to show how careful you have to be to avoid getting gouged.
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Old 05-11-2013, 12:10 PM   #2
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Wouldn't it be easier if you just set up autopay for the entire balance due?

It solves this problem, gives you one less thing to worry about, and saves you the stamp.

Setting up a lazy-man system saves you from trying to be careful.
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Old 05-11-2013, 12:20 PM   #3
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I do not have a checking account with the credit card institution, so the autopay idea would not work. If I did have autopay, I would need to maintain a large cash balance in my checking account due to the variability of credit card bills from month to month. I do all my financial transactions online, so no stamps are involved. I made a visual processing error between 1 and 7, that's all. Having bills on autopay does not remove the need to be careful. You still need to check for inappropriate charges.
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Old 05-11-2013, 12:32 PM   #4
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I made a visual processing error between 1 and 7, that's all.
If you have a good payment record, why not give the folks at your CC a call and send them a check for the shortage. It was obviously a simple error that a good customer made and is ready to immediately rectify. I'll bet it is a common error, as I have almost done that a few times myself.

Ask for a supervisor if you run into a brick wall.
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Old 05-11-2013, 12:48 PM   #5
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If you have a good payment record, why not give the folks at your CC a call and send them a check for the shortage. It was obviously a simple error that a good customer made and is ready to immediately rectify. I'll bet it is a common error, as I have almost done that a few times myself.

Ask for a supervisor if you run into a brick wall.
The agent I spoke with on the phone recognized that this was an inadvertent typo, acknowledged that I am a good customer, and immediately agreed to reverse the charge. No brick walls were encountered, thankfully. I also paid the new bill in full immediately (the due date is a few weeks away) to ensure that I have a positive balance.
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Old 05-11-2013, 12:54 PM   #6
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I do not have a checking account with the credit card institution, so the autopay idea would not work
You might want to check on that.

All my credit cards are on autopay for the full monthly balance, and the money comes from a different institution in every case but one.

All I have to do is make sure there is enough in the applicable checking account a couple of days before the credit card is due to be autopaid.
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Old 05-11-2013, 12:55 PM   #7
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Meadbh, you are so right ! Its SO easy to have fat fingers or have a typo. I don't like have company's "pull" money from my accounts (since they would also pull billing erros) so I push automated payements every month. I try and set up my payments a week or two in advance and then I double check, but I'm sure one of these days I'll mess up also !
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Old 05-11-2013, 01:27 PM   #8
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Meadbh, you are so right ! Its SO easy to have fat fingers or have a typo. I don't like have company's "pull" money from my accounts (since they would also pull billing erros) so I push automated payements every month. I try and set up my payments a week or two in advance and then I double check, but I'm sure one of these days I'll mess up also !
Exactly!
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Old 05-11-2013, 01:32 PM   #9
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I've had this very thing happen a few times and also missed a due date a couple times. A phone call to the credit card companies solved the problems right on the spot. Most of the time those companies were willing to take payment immediately out of my checking account which guarantees payment that very day. Most companies will work with their "valued customers". Don't know why I am so valuable as they never make a dime of interest off me.
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Old 05-11-2013, 02:15 PM   #10
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I've had this very thing happen a few times and also missed a due date a couple times. A phone call to the credit card companies solved the problems right on the spot. Most of the time those companies were willing to take payment immediately out of my checking account which guarantees payment that very day. Most companies will work with their "valued customers". Don't know why I am so valuable as they never make a dime of interest off me.
All of the retailers you buy from pay 2-3% whether you pay any interest or not.
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Old 05-11-2013, 03:28 PM   #11
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Originally Posted by Meadbh View Post
Well, I screwed up. I made a typo and paid $1117 instead of $1177 on a credit card bill. My next bill shows $24 in interest charges, 12 days later. It turns out that interest is being charged on the entire bill, not just the $60 difference between what I paid and should have paid. The financial institution has agreed to reverse the interest charge as I am a longstanding customer, but it just goes to show how careful you have to be to avoid getting gouged.
What kind of a weird-ass card agreement do you have that allows the credit card issuer to change interest on money which was paid on time? Is this standard practice in the credit card industry now?

The last time I accidentally paid an amount less than the amount due was mroe than 20 years ago. But when that happened I was charged interest only on the unpaid portion, as I expected.
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Old 05-11-2013, 03:57 PM   #12
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I think the way it works is if you are late or pay partial, they go back and accrue interest on each purchase from the time of purchase and is done daily for the statement period. So if you make a partial payment the next bill is new charges + interest on previous balance - payments.

How Credit Card Interest Is Calculated? Here's The Truth
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Old 05-11-2013, 04:33 PM   #13
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I allow VERY FEW people access to my account. I prefer to SEND money rather then let someone TAKE money. A bit more work, but then I am retired.
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Old 05-11-2013, 05:19 PM   #14
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Originally Posted by Live And Learn View Post
Meadbh, you are so right ! Its SO easy to have fat fingers or have a typo. I don't like have company's "pull" money from my accounts (since they would also pull billing erros) so I push automated payements every month. I try and set up my payments a week or two in advance and then I double check, but I'm sure one of these days I'll mess up also !

+2 Big time....


I have done an electronic check for a university, but did not set up any kind of automatic payment....
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Old 05-11-2013, 05:21 PM   #15
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I did the same with an even smaller amount... it about the same money, but the last digit was an 8 and I saw it on my screen as a 6... so I was only $2 off....


My eyesight is not good and I do not like bifocals even though I should use them.... it is funny since I had them for many years when I was young...
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Old 05-11-2013, 05:30 PM   #16
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Cut n paste works well in those cases. I have my CC and checking at PenFed and use the option "Pay statement balance" to make sure I get the right amount.
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Old 05-11-2013, 07:19 PM   #17
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I recently signed up for a priceline rewards visa credit card for the sole purpose of getting 2% cash back. I had been very hesitant, as I hate debt and especially credit cards. Anyway, I went with the decision and set everything to autopay with my chase checking.
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Old 05-11-2013, 07:19 PM   #18
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Originally Posted by retire@40 View Post
Wouldn't it be easier if you just set up autopay for the entire balance due?

It solves this problem, gives you one less thing to worry about, and saves you the stamp.

Setting up a lazy-man system saves you from trying to be careful.
Not a bad strategy as long as you audit every transaction on every statement ... and you maintain an awareness of your running balance at all times and have enough cash in your payment account to cover it. FWIW, this is what I do. Quicken makes it pretty easy.
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Old 05-11-2013, 07:20 PM   #19
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All of the retailers you buy from pay 2-3% whether you pay any interest or not.
Dave, I don't understand your post. I'm not dealing with the retailer, I'm dealing with the credit card company. What is your point?
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Old 05-11-2013, 09:18 PM   #20
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What Dave is saying is that the retailers actually pay the credit card companies a small percentage of the price of the items sold. In North America where the use of credit cards is ubiquitous, this charge hidden from the consumer and is part of the cost of goods sold. But in other parts of the world where credit card payments are not the default, retailers will frequently base the price on cash purchase and charge the customer extra to use a credit card. I have experienced this in continental Europe, Mexico and in South America, albeit some years ago.
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