why does an electronic payment from my bank to my credit card take 4 days to clear?

Question

I use PC banking. If I make a payment to my credit card, as soon as i hit 'enter', the money is effectively gone from my account.
But, If i dont give the payment 4 _working_ days to clear, my credit card company will charge me a 'late fee', for not paying up on time!!

What the heck do they do with the payment? print it off and send it by canal barge to the credit company?

Answer 1

There lot of internal procedures involved even after u made the payment through online. The bank afterall looks for its own profits, so willl try as much to delay. but u hv a proof dat u made the payment four days back. so u can show dem da payment receipt proof which u ususally get after u made the payment online.

it happened twice wid me that they charge me for late payment though both times it were they who at fault for the delay of procesing. but i had a proof of payment receipt. so i cud straighten the things up with them instantly.

so make sure do keep all the receipts of payment with you. its quite essential especaily when u deal with banks or any such financial institutions. afterall, u're consumer and hv every right to fight for your needs, your convenience & your choice of dealings.

Cheerz!!!

Answer 2

You are making your payment WAY too close to your due date. Hopefully they will get it in time. If not, you will be charged a $39 late payment fee. Also, if you pay in full each month (best for those top 800 scores), by making a late payment you will end up paying interest on a credit card. The 17th was a Saturday - some banks do not process payments on that date. Next time pay the date you get the bill in the mail. And always pay your entire balance in full each month for scores that will amaze anyone. /

Answer 3

Actually , ask your bank if they mail a check or electronic transfer your payments. Often times the bank pulls the funds when you make a payment then wires "batches" of payments on certain days- or mails a check .Then ask your credit card company how long it takes to process an electronic payment- many take up to 72 hours once they receive a wire to process the payment. Check into your credit card's payment options- often times they offer a low cost/free online payment option such as auto draft-where the payments are taken out automatically on the same day every month with no penalities. ( I use to work for one of Satan's minor minions- Citi Cards)

Answer 4

When transferring money between banks they use a system called BACS they will normally tell you it takes 4 working days but it can take anything form 2 days. I would always leave the 4 days just in case so you don't get a late fee. The money will show leaving you account immediately so you can't spend it to stop you from possibly going overdrawn. They tell you 4 days to cover their own backs so nothing new there then.

Answer 5

Southock is right. They're using your money to make more money. That's what banks are like. Shop around and see if you can find one that will do the crediting faster-- like in less than one day -- and if their other fees and interest rates etc are the same, dump your current bank and move your money over.That's what I did, when my former bank needed SEVEN DAYS to credit an electronic transfer. And when I told them why I was closing my accounts, they brought out the manager to plead with me...Told me that they would make sure it never happened again...

I told them that this was a bit late, took my money (in cash), and left. I also told my new bank why I was moving to them, and that if they tried the same trick my money would be out of there so fast they wouldn't see it for dust...

They have NEVER tried that trick on me...

Hope this helps!

Answer 6

In 4 days the bank makes 4p on the loan of your money. Do the sums for 10.000.000 customers for 40 days

Answer 7

Greedy Greedy banks

Answer 8

Because banks are robbing bastards who make interest on you money.