One of those hugely embarrassing moments when credit card declined in petrol station today. Fortunately had another card to pay for the fuel but after phoning the bank when I got home it turned out to be an unusual reason.
My direct debit is set to pay £XXX/month or the full balance, whichever is lower. Last month I decided to increase the payment amount and did so using Nationwide's online banking system, which seemed pretty straightforward.
Lo and behold when on the phone today I discover that the card has been blocked because of a missing payment.
"Hang on a minute", I sez, "it's on a direct debit". The bloke on the end of the phone agrees and tries to find out why the payment never went through.
It turns out that if you modify a direct debit close to the payment date (in my case, about the middle of last month), the computers treat the situation as cancelling the old one and creating a new one, which wasn't done in time to make the payment.
I should probably have spotted this but of course didn't, so the card was blocked. To be fair to Nationwide they immediately refunded the late payment charge and assured me it won't be registered with the credit reference agencies, but as it's an unusual situation it's worth bearing in mind for the future.
We rely on direct debits so we can forget about making monthly payments.
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>> It turns out that if you modify a direct debit close to the payment date (in my case, about the middle of last month), the computers treat the situation as cancelling the old one and creating a new one, which wasn't done in time to make the payment.
Most banks show a warning message that if DD payment is due within next 4-5 days then to call them otherwise it might not be actioned before due date.
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I have a similar problem, I made two payments in Feb and one in March but my March one was made on the 3rd, payment was due on the third, I made no further payments in March thinking its paid but now its gone down a miss payment.
If it goes down as a miss payment I shall close down both accounts I have with the bank.
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>> I have a similar problem, I made two payments in Feb and one in March but my March one was made on the 3rd, payment was due on the third, I made no further payments in March thinking its paid but now its gone down a miss payment.
If it goes down as a miss payment I shall close down both accounts I have with the bank.
Why close the accounts?
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Because as far as I am concerned it was not a missed payment. My credit card is with the same bank.
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>> Because as far as I am concerned it was not a missed payment. My credit
>> card is with the same bank.
>>
Now I'm more confused.
These are manual payments?
If so, you made a payment ON the day it was due?
As I understand, that wouldn't clear on the 3rd parties account until at least the following day.
So it would be late.
In that case, it isn't a bank error.
Hmm just re-read your post.... if it is a credit cars account you were paying, then I agree with you....
Last edited by: swiss tony on Fri 6 Apr 12 at 14:04
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>> These are manual payments?
>> If so, you made a payment ON the day it was due?
>> As I understand, that wouldn't clear on the 3rd parties account until at least the
>> following day.
>> So it would be late.
Don't be too sure of that.
Yesterday I made an online purchase using my debit card on behalf of a club of which I'm treasurer as the club doesn't have a debit card. I then put the invoice through as an expense incurred on behalf of the club and transferred the money to my account by transfer, within five minutes I had a text alert from my bank to tell me the funds had been credited! I know the banks have been introducing 'faster payments' but I was surprised it was that quick, in the modern world it's quite feasible but never thought the banks would get dragged into the 21st Century just yet.....
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>> >> It turns out that if you modify a direct debit close to the payment
>> date (in my case, about the middle of last month), the computers treat the situation
>> as cancelling the old one and creating a new one, which wasn't done in time
>> to make the payment.
>>
>> Most banks show a warning message that if DD payment is due within next 4-5
>> days then to call them otherwise it might not be actioned before due date.
>>
The system did show a warning message, but only along the lines of taking care if it's the first direct debit payment set up, not for changes to the amount.
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I suppose the reason for the delay is because a DD is initiated by the payee, not the account being debited. So you have to allow time for the amended message to get through their system before it calls on your bank for the revised amount.
A standing order gives much more control. You instruct your bank to make payments. The recipient can do nothing about it, it just receives what it gets given. I have sometimes modified a SO the day before and it goes through all right.
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Because I don't buy anything on credit I don't have a credit card. I have a debit card and never have any problems with it.
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Very virtuous but slightly misguided.
Buying on a credit card and paying off in full each month can get you a discount of up to 2% in rewards and give you legal protection against the vendor.
Of course someone has to pay for this. It is in effect the people who pay in full in cash or on their debit cards
Last edited by: CGNorwich on Fri 6 Apr 12 at 15:10
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I used mine for in case of bad cash flow. I don't use it any more though.
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You may be a mug if you don't use it for purchases over a £100.00 - Some debit cards now offer limited protection in the same way...well not exactly the same way
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I find it useful to have both a credit and a debit card. The former is used for most purchases costing more than a few pounds, and the latter on the rare occasions when credit card usage would incur an additional charge.
I receive an small annual cashback from my credit card company, who some years ago managed to retrieve a four figure sum from a firm that I was having considerable problems with.
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About the same here. Paying for the groceries petrol and large purchases earns me around £200 per year in John Lewis vouchers. Credit card is paid off in full automatically each month so no chance of incurring any charges.
Of course retailers are paying for this largesse in credit card fees so prices are higher than they would be if we all paid cash but since there is normally no discount for paying cash debit/card it makes sound financial sense to alway use the credit card.
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>> About the same here. Paying for the groceries petrol and large purchases earns me around
>> £200 per year in John Lewis vouchers. Credit card is paid off in full automatically
>> each month so no chance of incurring any charges.
>>
>>
Which card is that? JL vouchers would be handy.
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That will be the Partnership Card. Its a lovely shade of pink, I am an authorised card holder on Nicoles account.
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"Its a lovely shade of pink,"
Available in a range of designer colours
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Which card is that? JL vouchers would be handy.
John Lewis Parnership
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Ah. Thought it might have been.
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>> Which card is that? JL vouchers would be handy.
>>
>> John Lewis Parnership
>>
In addition:-
If you are a Waitrose shopper then how about a "my Waitrose" loyalty card?
Mine is swiped at each visit and I get an instant penny saving.
Just got my first £5 Waitrose voucher for all my swipes. :-)
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>> In addition:-
>> If you are a Waitrose shopper then how about a "my Waitrose" loyalty card?
>> Mine is swiped at each visit and I get an instant penny saving.
>> Just got my first £5 Waitrose voucher for all my swipes. :-)
A closely guarded secret, it seems.
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...Some debit cards now offer limited protection in the same way...well not exactly the same way...
I suppose you had to find something to talk about over the beer and biryani.
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>> Buying on a credit card and paying off in full each month can get you
>> a discount of up to 2% in rewards and give you legal protection against the
>> vendor.
I'm a pay-as-you-go person. Even my mobile phone is pay-as-you-go.
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As long as you realise you are paying for the pleasure.
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>> I'm a pay-as-you-go person. Even my mobile phone is pay-as-you-go.
No its not, its pay up front. They have your money.
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I get some cashback but nothing like £200. With our JL spend, it might be a better bet for us than our existing card.
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We use the Marks & Spencers credit card paid off every month.
All our bills debit card.I think.She's in charge.>:)
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Yep, that's how I use mine. However, I set it to pay off £1000 or the outstanding balance each month, whichever's lower. That way 99% of the time it's paid off in full, but if I need to make a big purchase I can rely on the card not emptying my current account at payment time.
Last edited by: Fursty Ferret on Sat 7 Apr 12 at 10:54
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Direct debits - cautionary note - movilogo
