Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Double check credit card payments!
Old 05-11-2013, 11:58 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,401
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.
Meadbh is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-11-2013, 12:10 PM   #2
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
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.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Old 05-11-2013, 12:20 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,401
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.
Meadbh is offline   Reply With Quote
Old 05-11-2013, 12:32 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,671
Quote:
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.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 05-11-2013, 12:48 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,401
Quote:
Originally Posted by mickeyd View Post
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.
Meadbh is offline   Reply With Quote
Old 05-11-2013, 12:54 PM   #6
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 25,198
Quote:
Originally Posted by Meadbh View Post
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.
braumeister is offline   Reply With Quote
Old 05-11-2013, 12:55 PM   #7
Thinks s/he gets paid by the post
Live And Learn's Avatar
 
Join Date: Feb 2012
Location: Tampa Bay Area
Posts: 1,866
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 !
__________________
"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11

ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
Live And Learn is offline   Reply With Quote
Old 05-11-2013, 01:27 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,401
Quote:
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 !
Exactly!
Meadbh is offline   Reply With Quote
Old 05-11-2013, 01:32 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Oct 2008
Location: Naples
Posts: 2,179
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.
JOHNNIE36 is offline   Reply With Quote
Old 05-11-2013, 02:15 PM   #10
Dryer sheet wannabe
 
Join Date: Mar 2013
Location: Pine
Posts: 18
Quote:
Originally Posted by JOHNNIE36 View Post
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.
Dave_S is offline   Reply With Quote
Old 05-11-2013, 03:28 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2009
Posts: 6,681
Quote:
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.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 05-11-2013, 03:57 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,894
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
rbmrtn is offline   Reply With Quote
Old 05-11-2013, 04:33 PM   #13
Recycles dryer sheets
 
Join Date: Jul 2008
Location: Sacramento area
Posts: 467
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.
Original Wally is offline   Reply With Quote
Old 05-11-2013, 05:19 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 17,203
Quote:
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....
Texas Proud is offline   Reply With Quote
Old 05-11-2013, 05:21 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 17,203
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...
Texas Proud is offline   Reply With Quote
Old 05-11-2013, 05:30 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 13,202
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.
RunningBum is offline   Reply With Quote
Old 05-11-2013, 07:19 PM   #17
Recycles dryer sheets
 
Join Date: Jan 2013
Posts: 118
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.
AndrewJackson is offline   Reply With Quote
Old 05-11-2013, 07:19 PM   #18
Thinks s/he gets paid by the post
Rustward's Avatar
 
Join Date: Apr 2006
Posts: 1,684
Quote:
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.
Rustward is offline   Reply With Quote
Old 05-11-2013, 07:20 PM   #19
Thinks s/he gets paid by the post
 
Join Date: Oct 2008
Location: Naples
Posts: 2,179
Quote:
Originally Posted by Dave_S View Post
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?
JOHNNIE36 is offline   Reply With Quote
Old 05-11-2013, 09:18 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,401
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.
Meadbh is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 03:49 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.