topic Re: How does $15 speed up an HSBC payment? in Credit Cards

How does $15 speed up an HSBC payment?

Anonymous — Sat, 26 Jul 2008 23:47:12 GMT

Seriously. On their website, there is an option to pay "standard" or "express". the standard payment usually takes around 3 days to clear and post, etc....while the "express" option posts the payment to your account that same day.

Now this sounds fine and good but the "express" is $15 extra. I guess I could understand REALLY needing to use it if you forgot to pay and your payment was the next or the same day, then yeah, I could see using the "express" option.

My question is....what is it, for the $15, that express works faster and posts that same day?

It is all done electronically and computerized ....so what gives? Does the $15 speed up the electric current in the computers? Does it make someone push buttons faster? No.

Why not have the "express" delivery be the only option? And for free? Or is it that HSBC sees this scam as a way to milk more money out of sub-primers?

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 00:14:42 GMT

I think its a good idea. Most people that have an Orchard Bank or HSBC card are building or rebuilding there credit up. So it teaches you to pay early rather than wait till the last second.

Message Edited by Justn on 07-26-2008 05:14 PM

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 00:54:57 GMT

There is no such thing as a financial institution in this day and age that isn't thinking of every tiny little way they can turn every screw on you for a extra dime. None of them.

Re: How does $15 speed up an HSBC payment?

unknown_entity — Sun, 27 Jul 2008 01:18:24 GMT

For every dollar you make there are 300 million people out there trying to figure out a way to get a penny of it. The $15 doesn't speed up the transaction, it's just a way for them to take advantage of someone who is in a position to be taken advantage of.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 01:30:35 GMT

It's purely a money-maker on their part. I don't think the software does anything different.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 01:52:08 GMT

HSBC does not allow your payments to post on Sat or Sun if they are due on those days.

If your payment is due, say Sunday and you waited til Sunday to pay it, the earliest standard would let you pay would be Monday. That would make you late and they would charge you for it. You would then have to use the express pay to make sure you didn't get the late charge so it would post for Sunday.

Message Edited by stef37 on 07-26-2008 06:52 PM

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 02:02:25 GMT

Here's another take on it.

ACH transactions take 2-3 business days to clear. When you make a standard payment online, the bank waits for the payment to clear (meaning, they wait until they receive the funds through the clearinghouse system) and then they post the payment to your account.

When you make an express payment, they still receive the funds 2-3 business days later, because that payment takes the same amount of time to clear as the standard payment. However, they credit your account the same day you initiate the payment with them.

In other words, the bank gives you credit on your account for funds they have not yet received. This involves a certain amount of risk. What if your payment is returned as NSF?

When a financial institution takes on additional risk, they expect to be compensated for it. That's what that $15 represents. It is compensation for the additional risk they assume when they post a payment to your account before they actually receive the funds.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 03:01:14 GMT

All my credit card payments post pretty much within a day or two and this is sometimes before they withdrawals show up as pending or posted in my BOA account. IE: I paid HSBC on Thursday and the payment is posted as processed on the HSBC site, yet the money has not been taken from BOA account (or showing as pending). So I don't think HSBC has the cash from BOA yet and I didn't use express pay.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 03:22:09 GMT

And there is still no more human involvement either way. Do you think this system was contrived for banks to allow a way for people to make payments just under the wire out of the kindness of their hearts? They charge you a late fee so you are not charged a late fee? If they charge a fee to cover risks, I wonder if $15 is their average loss on such a transaction. I think not; probably way not.

30 years ago I might be able to call my bank and ask Fred to hold up on posting a note until Tuesday and I could expect Fred to do that for me. Today, under the same circumstances I could only expect to be run thru with a double-edged sword. What has changed in 30 years? Greed. And yes, the customer is much more willing to walk away from an obligation today I think so a bank's thinking changes for this reason as well. Overall it’s all about………………..

MEEEE! MEEEEE! MEEEEE! MEEEEE! MEEEEE!

Now this isn’t about everybody by any stretch (though the gap is closing) but it certainly seems to be the case about most every institution. I wouldn't trust a bank to do a kind and humanly thing today as far as I could hurl one.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 03:48:33 GMT

I don't know if it is the same system. I imagine something extra goes into the express payment, even if it some software program that allows that payment to be made. The simple solution is to not use express pay. I also don't pay by phone, because they want you to pay for that too.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 03:52:49 GMT

That's what I thought, just another scam to get money out of people that might be late.

Do any "real" banks do this? Or just ones like HSBC?

By the way, I was driving down the street the other day and I saw a huge HSBC branch....what will I see next, a Bank of Delaware branch...can you IMAGINE?

I wanted to throw eggs at it. I did not know they had actual branches. I bet they probably have a "standard line" and an "express line" to stand in for the tellers but they charge xtra for the express. Probably charge their own banking customers to use the ATM inside. Who would bank there??!!

Message Edited by Jubeyy on 07-26-2008 08:52 PM

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 03:55:38 GMT

@Anonymous wrote:
That's what I thought, just another scam to get money out of people that might be late.

Do any "real" banks do this? Or just ones like HSBC?

By the way, I was driving down the street the other day and I saw a huge HSBC branch. I wanted to throw eggs at it. I did not know they had actual branches. I bet they probably have a "standard line" and an "express line" to stand in for the tellers but they charge xtra for the express. Probably charge their own banking customers to use the ATM inside. Who would bank there??!!

Don't forget the Parking Space and Entering Building Fees.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 04:13:42 GMT

Justn wroteon't forget the Parking Space and Entering Building Fees.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 04:17:50 GMT

Jubeyy wrote:
That's what I thought, just another scam to get money out of people that might be late.

Do any "real" banks do this? Or just ones like HSBC?

By the way, I was driving down the street the other day and I saw a huge HSBC branch....what will I see next, a Bank of Delaware branch...can you IMAGINE?

I wanted to throw eggs at it. I did not know they had actual branches. I bet they probably have a "standard line" and an "express line" to stand in for the tellers but they charge xtra for the express. Probably charge their own banking customers to use the ATM inside. Who would bank there??!!

Message Edited by Jubeyy on 07-26-2008 08:52 PM

There are dozens and dozens of HSBC branches in NYC. It's actually quite a popular bank around here. Don't make the mistake of confusing any bank's banking operations with its CC operations. Very often, the left hand has no idea what the right hand is doing in a corporation that size. I haven't checked lately, but a year or two ago, HSBC offered some of the highest rates in the country on deposit accounts.

I still don't understand how it's a "scam." I suppose one alternative would be for them to say that all payments take 2-3 business days to post, and if you pay too late, well, too bad. At least they offer the option of paying extra to have your payment post the same day. Anyone who doesn't want to pay it can always just pay at least a few days before the payment is due.

Please do not take offense at this, as it is not directed at you personally, but you have to admit that anyone making an online CC payment on the same day the payment is due isn't exactly in a position to expect red carpet treatment.

BTW, even BofA charges to make a standard payment by phone, and that's not even guaranteed to post the same day.

Message Edited by cheddar on 07-26-2008 09:17 PM

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 04:46:46 GMT

Well, I don't get offended easily, thanks though. As far as all the HSBC branches in NY, that is something I did not know. I live in Los angeles and that's the only one I have seen.

I agree that Banks have many divisions...cc's, checking, etc., and about the whole right hand not knowing what the left hand is doing thing. I have a BofA checking and BofA cc's, it's like two separate companies...neither knows what is going on with the other.

As far as the scam...it is just my opinion, it is a scam. They are charging xtra for absolutely nothing. Why can't all payments post the same day before noon M-Sa (or all payments post 2-3 days, like you said)? Because it is another oppurtunity to take advantage of a customer. No, $15 is not much, but can you imagine how much they rack up every month due to the people that are paying the $15?

As far as red carpet treatment...is it such a strange an unheard of idea that a bank treat their customers with respect /and vice versa? Nickel and dime-ing customers does not show any respect for either the customer's money or their intelligence. True, people should be a little more responsible and not pay on the due date....but I have seen people on here that have over 10 cards....I could see a payment on a card being "forgotten".

Message Edited by Jubeyy on 07-26-2008 09:46 PM

Re: How does $15 speed up an HSBC payment?

Watchmann — Sun, 27 Jul 2008 05:06:38 GMT

Jubeyy wrote:

Why can't all payments post the same day before noon M-Sa (or all payments post 2-3 days, like you said)? Because it is another oppurtunity to take advantage of a customer. No, $15 is not much, but can you imagine how much they rack up every month due to the people that are paying the $15?

Even in todays instantly connected world things don't happen simultaneously. Systems have to update, then communicate with other systems, wait for confirmation that payment has been enacted, etc, etc. Figure on two days, that is about as good as it gets.

You can avoid all of this by just staying on top of your bills and pay them well in advance of the due date. That way there is no problem. That's part of your responsibility. If you forget until the last moment you will pay for the convenience of instant crediting. It is a service they offer, but you can avoid it by managing your money properly.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 06:37:27 GMT

@Watchmann wrote:

@Anonymous wrote:

Why can't all payments post the same day before noon M-Sa (or all payments post 2-3 days, like you said)? Because it is another oppurtunity to take advantage of a customer. No, $15 is not much, but can you imagine how much they rack up every month due to the people that are paying the $15?

Even in todays instantly connected world things don't happen simultaneously. Systems have to update, then communicate with other systems, wait for confirmation that payment has been enacted, etc, etc. Figure on two days, that is about as good as it gets.

You can avoid all of this by just staying on top of your bills and pay them well in advance of the due date. That way there is no problem. That's part of your responsibility. If you forget until the last moment you will pay for the convenience of instant crediting. It is a service they offer, but you can avoid it by managing your money properly.

Thanks!

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 10:55:50 GMT

FWIW, my old Capital One card always credits my account with my payment before it clears my bank. Discover, on the other hand, seems to take 3 days and then some to clear a payment. I always make sure to PIF that card a week in advance.

The $15 fee is just a stupid tax. That is not compensating the bank for the risk. If they credit your account immediately for free (like capital one does for me), they will just tack a fee on if the funds aren't available. That's the same outcome as if you didn't pay at all. The $15 fee is just another way to milk you. In fact, that's the only bank I've heard of that does that.

Re: How does $15 speed up an HSBC payment?

Anonymous — Sun, 27 Jul 2008 11:18:15 GMT

Wesley23 wrote: My old Capital One card always credits my account with my payment before it clears my bank. Discover, on the other hand, seems to take 3 days and then some to clear a payment. I always make sure to PIF that card a week in advance.

Cap One usually credits the account within 24hrs for me. But they always put a 10 day hold on the available credit. Like rite now I only have $4.12 available credit but I have $0 balance and I paid on July 17. They should release the funds today but they might not because its sunday.

Re: How does $15 speed up an HSBC payment?

haulingthescoreup — Sun, 27 Jul 2008 13:44:04 GMT

Bank of America was charging a fee to pay by phone, if you missed the Friday afternoon deadline and the due date was on the weekend. DH nearly got caught by that once on his BT. We called up and groveled, and they waived the fee. (This was before I got ruthless and started managing his credit as well as mine, lol.)

I could swear that I remember something from them about them no longer charging for this, but I don't know for sure. There would be some justification for a phone payment fee, as you would be tying up a human's time in dealing with your stuff.

Just about all of my CCC's now credit payment immediately, or the next day if payment is made in the evening, even if the next day is a weekend. And I think this should be the rule. I find it extremely difficult to believe that the payment is credited by some Bob Cratchit-like employee, laboring away late in the evening. More likely it's just another blip on the computer. And as Wesley pointed out, if it turned out that your bank funds weren't available, they would happily charge you at that point.

Just another nuisance fee.

And BTW, in hopes of avoiding a possible lecture, the dates I focus on are statement dates, as I am paying early in hopes of having $0 report. I don't mess with due dates. Any balance due has generally been paid 4 weeks ahead of the due date.