Questions about missing the due date on a Citicard Statement

[trippin_the_rift]

I swear my payment due dates fall more often on a Sunday than any other day of the week.

While I can't speak for other banks, the date citibank receives your payment is the date the BPAY amount is *SENT*, not received (so long as it's done before 5pm).

So for example my citibank card is always due on a Monday. If I transfer funds on Sunday, while it won't hit my citibank acct til Tuesday, when it does hit the date on it will be Sunday (BPAY only).

Also it's interesting to note that about 6 months ago citibank changed the way the statement reads so that the entire closing balance is that much harder to find

 

[markis10]

While I can't speak for other banks, the date citibank receives your payment is the date the BPAY amount is *SENT*, not received (so long as it's done before 5pm).

So for example my citibank card is always due on a Monday. If I transfer funds on Sunday, while it won't hit my citibank acct til Tuesday, when it does hit the date on it will be Sunday (BPAY only).

The key thing is doing the payment with your bank before THEIR cutoff time which varies:

"As long as you make a payment before your financial institution's cut-off time (this is the time at the end of the business banking day when you need to make a payment by for it to be processed overnight), the biller will acknowledge the payment as having been made that day and should process the payment the next banking business day.
If you make a payment after your financial institution's cut-off time, the biller will acknowledge the payment as having been made on the next banking business day (this does not include weekends or public holidays)."

In the case of ANZ that is 6PM Melbourne Time, Commbank is 3pm (AEST time), NAB 6.30PM AEST, Westpac 6PM Sydney Time, St George 5.30PM AEST and Bankwest 4PM WST.

 

[coco50]

Just wondering why people repay it manually rather than setting up an automatic direct debit?

Me too! I used to pay manually until I was going OS last year. I set up direct debits on all accounts - even electricity and telephone. Now all I have to do is to make sure that I have sufficient funds in the nominated account to make the payment. Direct debit is so easy.

 

[serfty]

... Direct debit is so easy.

Until one day due to circumstance outside your control/knowledge there are not enough funds ... :-|

Then the costs mount up!:shock:

I do still have a couple of DD's - on Charge cards! Of course you can't use these to pay Citibank accounts.

 

[medhead]

In the case of ANZ that is 6PM Melbourne Time, Commbank is 3pm (AEST time), NAB 6.30PM AEST, Westpac 6PM Sydney Time, St George 5.30PM AEST and Bankwest 4PM WST.

Just to add to that NAB cutoff time is on the previous working day. So for a Monday payment 6:30 pm on Friday. Been caught out by this.

[aside=] AEST is a very confusing to use in this context as it has a specific meaning - A Eastern Time would be better[/aside]

For my reason against direct debit see post #10. $50 reference fees are very costly or time consuming to have reversed.

 

[markis10]

Just to add to that NAB cutoff time is on the previous working day. So for a Monday payment 6:30 pm on Friday. Been caught out by this.

[aside=] AEST is a very confusing to use in this context as it has a specific meaning - A Eastern Time would be better[/aside]

For my reason against direct debit see post #10. $50 reference fees are very costly or time consuming to have reversed.

Just published what the banks actually specified to correct the impression that there was a common cut-off. AEST is a specific time reference being UTC + 10 hours, its shortened version is EST when not used in an international context.

Your reference to NAB being the day before is in error and inconsistant with BPAYs guidelines:

"Subject to clause 44.8, billers who participate in the BPAY Scheme have agreed that a BPAY Payment you make will be treated as received by the biller to whom it is directed:
(i) on the date that BPAY Payment is made, if NAB is told to make the BPAY Payment before NAB's cut-off time for BPAY Payments on a banking business day "

NAB - Terms & conditions

1. What are the cut-off times for domestic and BPAY payments?

Payments must be submitted and authorised by the following times on a business day:

• 6:30pm (AEST) for BPAY payments

NAB - Frequently Asked Questions

I would say your experience was an exception or an oversight rather than the norm!

 

[JohnK]

I didn't even know there was such things as late fees! I've been up to 3-4 days late without penalty... there must be some sort of grace period...

I have had late payment fees reversed by a number of credit providers yet there are some who refuse to reverse a late payment fee.

I have been late with CBA a number of times and never been charged a late payment fee. As long as I pay the minimum monthly payment plus any overdue amount the next month it is OK.

 

[coco50]

Until one day due to circumstance outside your control/knowledge there are not enough funds ... :-|

Then the costs mount up!:shock:

I do still have a couple of DD's - on Charge cards! Of course you can't use these to pay Citibank accounts.

This is where an overdraft on one's operating account helps. OK, it costs a bit each month in service fees to have it but there is peace of mind that the bills will be paid on time. Also in this lower interest environment at present the interest cost are lower if your operating account falls nelow zero. I have a DD on my Citibank account. I don't know why you say you can't use these to pay Citibank a/cs.

Also, I keep track of the amounts coming in each month on accounts where I have set up Direct Debit payments. If they are going to exceed the available balance in the operating account, I simply schedule a transfer of funds from an investment account so that there will be a positive balance after DDs are paid. I reckon this is better than the situation that the OP was in where he missed a payment and got slugged interest on a credit card outstanding balance.

 

[serfty]

... Also, I keep track of the amounts coming in each month on accounts where I have set up Direct Debit payments. ...

So do I, however note:

circumstance outside your control/knowledge

... this can cause (and has to me) problems.

 

[coco50]

So do I, however note:... this can cause (and has to me) problems.

This is where the overdraft comes in handy, unless the circumstnace beyond your control is the bank cancelling your overdraft - you would hope that they would notify you first - or some computer error in which case you would expect the bank to rectify this situation when you reported it. There are an endless number of "what ifs". You try to forsee as many as possible and provide for them. My biggest what if last year was where I may not have Internet access while overseas. This is why I arranged direct debits on all my regular payments, and since returning, I find them a really convenient way of settling my accounts.

 

[serfty]

Note my earlier reference to "Charge Cards" ...

 

[medhead]

Just published what the banks actually specified to correct the impression that there was a common cut-off. AEST is a specific time reference being UTC + 10 hours, its shortened version is EST when not used in an international context.

Thanks for that lesson. I do actually understand EST. But what I have found in discussion with NAB is that they take EST to also mean E Summer Time. So while the cutoff time should move by 1 hour during summer they do actually keep the cut off at 6:30 pm

Your reference to NAB being the day before is in error and inconsistant with BPAYs guidelines:

"Subject to clause 44.8, billers who participate in the BPAY Scheme have agreed that a BPAY Payment you make will be treated as received by the biller to whom it is directed:
(i) on the date that BPAY Payment is made, if NAB is told to make the BPAY Payment before NAB's cut-off time for BPAY Payments on a banking business day "

NAB - Terms & conditions

1. What are the cut-off times for domestic and BPAY payments?

Payments must be submitted and authorised by the following times on a business day:

• 6:30pm (AEST) for BPAY payments

NAB - Frequently Asked Questions

I would say your experience was an exception or an oversight rather than the norm!

Actually my comments were made in relation to a Monday due date and a BPay-ment done on Sunday. I was pointing out that there is no cut off on Sunday and it must be submitted on the previous business day to be attributed to the account earlier than the Monday. Generally. for a Monday cut off I suggest submission by the Friday is better.

If we keep in context of the discussion then, No, Im not incorrect.

My experience of Easter Monday Due date, missing the Bpay cut off on the Thursday and having the payment cerediting on the Tuesday is not an exception it is exactly as I understand it to work and it also agrees with the rules you point out. Given that I submitted the BPay-ment within an hour of the cut off this is when I had much discussion with NAB about exactly what AEST means.

 

[ethernet]

Banks also have the headache of different state public and Bank Holidays to contend with, or some fantastic 'rollbacks' when things are processed twice, or an ATM has its link broken.
So it pays them to have a grace period, that moves in a window, and no grace when there are no holidays on in any state or territory.

I still note nothing has been done about the un-reasonableness of charges - contrary to the banking Act. I suppose the law of estoppel can be applied to weasel out of a guilty verdict, when they get around to fixing things.