topic Re: PayPal MC - BEWARE!! in Credit Cards

PayPal MC - BEWARE!!

iamdetermined — Fri, 21 Aug 2020 15:38:02 GMT

Good morning All! It's been a while since I've checked in, hope everyone is doing well and standing strong 💪🏽 I had to pop in and share a very sneaky practice that I caught by PayPal and alert my myFico family!

I have a PayPal MC since 2018, $8k credit line. I had a balance of $2,097, paid $305 on the due date. My payments don't post for 48 hours so I didn't expect any activity to reflect on my account the following day.

I checked my PP account the following day and my balance was $2,125 (the payment did not post at that time) however I didn't utilize the card and no autopayments are set on it. I checked the transaction history and there was a late payment of $28! Huh??! I paid the bill at 4pm EST - how could it be late?!

I called PayPal - the agent reversed the transaction without any questions and now it's not showing at all, as if it was never there.

I monitor my accounts closely, always checking the day after making a payment or in the middle of a cycle "just because" and this experience makes me glad that I do.

Has anyone else experienced this with PP or any other lenders?

Please read your statements/check your accounts frequently for any hidden/unexpected/incorrect fees. BEWARE!!!

Re: PayPal MC - BEWARE!!

JSS3 — Fri, 21 Aug 2020 15:43:22 GMT

Processing for paypal usually takes 2 days. If you pay ON the due date, you'll be charged a late payment that will automatically be reversed once everything is finalized.

I believe you receive a message about this right when you pay.

Re: PayPal MC - BEWARE!!

ridgebackpilot — Fri, 21 Aug 2020 15:50:55 GMT

@JSS3 wrote:
Processing for paypal usually takes 2 days. If you pay ON the due date, you'll be charged a late payment that will automatically be reversed once everything is finalized.

I believe you receive a message about this right when you pay.

+1 Many card issuers follow this same practice.

That's why it's always a good idea to make your payment a couple of days before your due date. If you pay on your due date, especially later in the day on the West Coast, you're asking for a late payment fee to post that may eventually be reversed.

Re: PayPal MC - BEWARE!!

iamdetermined — Fri, 21 Aug 2020 16:00:35 GMT

Thanks JSS3 for pointing it out as I did miss the message stating that. I’ve never been hit with it when I’ve paid on the due date in the past so it was surprising/unexpected.

Re: PayPal MC - BEWARE!!

K-in-Boston — Fri, 21 Aug 2020 16:03:18 GMT

@JSS3 wrote:
Processing for paypal usually takes 2 days. If you pay ON the due date, you'll be charged a late payment that will automatically be reversed once everything is finalized.

I believe you receive a message about this right when you pay.

Yes, I receive this message when paying all of my Sychrony accounts even though I schedule payments on the first day my statement is available.

Re: PayPal MC - BEWARE!!

Credit12Fico — Fri, 21 Aug 2020 16:17:14 GMT

Thanks for the warning. Should also forewarn that for new account holders ( less than 6 months), they will delay posting substantial payments for 7-10 days so best to pay a week or more before the due date to avoid any late fees or interest posting entirely because you don't want to get into a customer service battle with Synchrony Bank for which you may or may not come out the loser lol. Good to hear they made it right for you. I have other cards where they take payment on the due date with no questions asked instant credit and no late fees ever post.

I think it's a safe card as long as you are prepared for it's quirks and know how to dance with the devil in order to get the 2% back. But that goes for any credit card company really.

Re: PayPal MC - BEWARE!!

iamdetermined — Fri, 21 Aug 2020 17:50:24 GMT

I usually pay before but occasionally pay on the due date, all (except one) of my CC’s are 1+ years old and have been fortunate not to see the late fee in the past. I’ll be making all payments ahead of time going forward.

Re: PayPal MC - BEWARE!!

iamdetermined — Fri, 21 Aug 2020 17:54:30 GMT

PP is my only Synchrony account and I’m sure the message is there based on what you all are telling me. I’ve had the card for some time and honestly
overlooked it and I’m sure it’s clear as day lol.

Re: PayPal MC - BEWARE!!

Azza — Fri, 21 Aug 2020 17:58:20 GMT

Why tempt fate?

If you have the money to pay the card, you should pay it off when you can. Paying close to the due date sets up potentials for backfires (I have had Citi return a payment before even though everything was okay) and late fees and headaches on your credit report.

Not here to parent anyone, but ideally credit is for money we already have, not money we are going to have. I personally consider borrowing to be a lateral move of "I am using this person's money to pay this, then handing it them my money when I walk out of the store", not a "well I'll have the money in the future so I can buy this now".

Re: PayPal MC - BEWARE!!

Anonymous — Fri, 21 Aug 2020 18:10:39 GMT

@Azza wrote:
Why tempt fate?

If you have the money to pay the card, you should pay it off when you can. Paying close to the due date sets up potentials for backfires (I have had Citi return a payment before even though everything was okay) and late fees and headaches on your credit report.

Not here to parent anyone, but ideally credit is for money we already have, not money we are going to have. I personally consider borrowing to be a lateral move of "I am using this person's money to pay this, then handing it them my money when I walk out of the store", not a "well I'll have the money in the future so I can buy this now".

But it also makes sense to pay as late as possible to get the benefit of the float. That's why I always use autopay PIF on due date. They take the money, no late fee, and, providing there is money in the payment account, it's their responsibility if anything gets delayed.

Re: PayPal MC - BEWARE!!

NoMoreE46 — Sat, 22 Aug 2020 11:37:59 GMT

BBVA used to be the same way. It explained that you may get a late fee if you pay on the actual due date but the late fee will get reversed. It stated that there is a systems limitation that causes the erroneous late fee.

However, I can't find this language from the payment area on the app anymore to quote this limitation.

Nonetheless, one would think that these bigger banks could figure out cutoff times in their payments system. The reversals are economical patches/work-arounds to avoid doing the correct thing. ...

Re: PayPal MC - BEWARE!!

Anonymous — Sat, 22 Aug 2020 12:25:45 GMT

@NoMoreE46 wrote:
BBVA used to be the same way. It explained that you may get a late fee if you pay on the actual due date but the late fee will get reversed. It stated that there is a systems limitation that causes the erroneous late fee.
However, I can't find this language from the payment area on the app anymore to quote this limitation.

Nonetheless, one would think that these bigger banks could figure out cutoff times in their payments system. The reversals are economical patches/work-arounds to avoid doing the correct thing. ...

Of course people could just as easily not wait until the last second to pay their bills. It's not like we don't get 21+ days to pay the bill after our statement is generated.

Re: PayPal MC - BEWARE!!

AverageJoesCredit — Sat, 22 Aug 2020 13:21:30 GMT

@Anonymous wrote:
@NoMoreE46 wrote:
BBVA used to be the same way. It explained that you may get a late fee if you pay on the actual due date but the late fee will get reversed. It stated that there is a systems limitation that causes the erroneous late fee.
However, I can't find this language from the payment area on the app anymore to quote this limitation.

Nonetheless, one would think that these bigger banks could figure out cutoff times in their payments system. The reversals are economical patches/work-arounds to avoid doing the correct thing. ...

Of course people could just as easily not wait until the last second to pay their bills. It's not like we don't get 21+ days to pay the bill after our statement is generated.

Lol, very true. +1

Re: PayPal MC - BEWARE!!

AverageJoesCredit — Sat, 22 Aug 2020 13:24:48 GMT

@Credit12Fico wrote:
Thanks for the warning. Should also forewarn that for new account holders ( less than 6 months), they will delay posting substantial payments for 7-10 days so best to pay a week or more before the due date to avoid any late fees or interest posting entirely because you don't want to get into a customer service battle with Synchrony Bank for which you may or may not come out the loser lol. Good to hear they made it right for you. I have other cards where they take payment on the due date with no questions asked instant credit and no late fees ever post.

I think it's a safe card as long as you are prepared for it's quirks and know how to dance with the devil in order to get the 2% back. But that goes for any credit card company really.

The card is as simple as it gets, no need to dance. Use it, pay it, you get your 2% once statement cuts, can transfer your rewards to your bank account in like 30 seconds. Nothing complicated .

Re: PayPal MC - BEWARE!!

Brian_Earl_Spilner — Sat, 22 Aug 2020 13:42:06 GMT

@Azza wrote:
Why tempt fate?

If you have the money to pay the card, you should pay it off when you can. Paying close to the due date sets up potentials for backfires (I have had Citi return a payment before even though everything was okay) and late fees and headaches on your credit report.

Not here to parent anyone, but ideally credit is for money we already have, not money we are going to have. I personally consider borrowing to be a lateral move of "I am using this person's money to pay this, then handing it them my money when I walk out of the store", not a "well I'll have the money in the future so I can buy this now".

No, that's actually what credit was designed for, to buy something you don't have money for yet. On the forums, it's been turned into a game and a way of making money through rewards, and there's a culture that you shouldn't spend what you can't pay for immediately, but that's not what credit is designed for. The whole design of the FICO score is to determine how risky you are to loan money to and to measure how likely you'll pay a lender back.

Re: PayPal MC - BEWARE!!

Anonymous — Sat, 22 Aug 2020 14:47:50 GMT

@Brian_Earl_Spilner wrote:

No, that's actually what credit was designed for, to buy something you don't have money for yet. On the forums, it's been turned into a game and a way of making money through rewards, and there's a culture that you shouldn't spend what you can't pay for immediately, but that's not what credit is designed for. The whole design of the FICO score is to determine how risky you are to loan money to and to measure how likely you'll pay a lender back.

Right, and a mortgage being for most of us an example where we aren't using credit like a debit card, a purchase we can PIF the same month. Sure, people do get into trouble going too wild on credit, but people also get into trouble crossing the road. In both cases, understand the risks and act accordingly!

Re: PayPal MC - BEWARE!!

Rogue46 — Sat, 22 Aug 2020 14:48:02 GMT

@Brian_Earl_Spilner wrote:
@Azza wrote:
Why tempt fate?

If you have the money to pay the card, you should pay it off when you can. Paying close to the due date sets up potentials for backfires (I have had Citi return a payment before even though everything was okay) and late fees and headaches on your credit report.

Not here to parent anyone, but ideally credit is for money we already have, not money we are going to have. I personally consider borrowing to be a lateral move of "I am using this person's money to pay this, then handing it them my money when I walk out of the store", not a "well I'll have the money in the future so I can buy this now".
No, that's actually what credit was designed for, to buy something you don't have money for yet. On the forums, it's been turned into a game and a way of making money through rewards, and there's a culture that you shouldn't spend what you can't pay for immediately, but that's not what credit is designed for. The whole design of the FICO score is to determine how risky you are to loan money to and to measure how likely you'll pay a lender back.

Exactly otherwise nobody would need a "credit card"

Re: PayPal MC - BEWARE!!

frugal47374 — Sun, 23 Aug 2020 04:10:12 GMT

I have autopay PIF on the due date for all my credit cards, including Paypal MC.

Have never had a late charge (reversed or not). I've told them to take out the money on their due date. It's up to them to do it.

Re: PayPal MC - BEWARE!!

UpperNwGuy — Sun, 23 Aug 2020 23:19:12 GMT

@Anonymous wrote:
But it also makes sense to pay as late as possible to get the benefit of the float. That's why I always use autopay PIF on due date. They take the money, no late fee, and, providing there is money in the payment account, it's their responsibility if anything gets delayed.

In today's world of extremely low interest rates there is no longer much benefit of the float. Better to pay your card several days before the due date than to earn a few cents in your checking account.

It may be their responsibility if anything gets delayed, but you may have to fight like heck to get them to admit it. Meanwhile, they might ding your credit.

Re: PayPal MC - BEWARE!!

Credit12Fico — Mon, 24 Aug 2020 01:29:12 GMT

@UpperNwGuy wrote:
@Anonymous wrote:
But it also makes sense to pay as late as possible to get the benefit of the float. That's why I always use autopay PIF on due date. They take the money, no late fee, and, providing there is money in the payment account, it's their responsibility if anything gets delayed.
In today's world of extremely low interest rates there is no longer much benefit of the float. Better to pay your card several days before the due date than to earn a few cents in your checking account.

It may be their responsibility if anything gets delayed, but you may have to fight like heck to get them to admit it. Meanwhile, they might ding your credit.

You have a point, but there are things beyond checking accounts that are profitable with float money if you know what you are doing. And I'm I'm not talking about stocks or gambling lol.