Citi, Amex and returned payment

KJinNC · ‎05-13-2020

I set up a second bank account on both Citi and Amex to pay bills, and made payments using the new account to a Citi card and an Amex card on May 8.

On Monday May 11, I got an email from Amex saying the payment was declined, or words to that effect. Upon talking with the CSR, I learned that my new account had (in his words) an "invalid bank account number." Upon investigation, that means I tried to pay using a savings account, and that bank does not allow savings accounts to be used like that. I should have known that - I think I had read it previously, and just forgot when configuring accounts.

Since I knew I had also used the same account to pay a Citi card, I went in Citi chat and tried to cancel the payment or see if there was anything proactive I could do. The chat CSR said the payment showed as posted, so no worries. About an hour later, I got an email from my bank saying they had refused the Citi payment, for the same reason (savings account).

There is no funding issue. Neither bill was due for weeks, and, I went and paid both using my tried and true older bank account last night.

My question is whether this will hurt my internal score with either Amex or Citi, and if so, what I can do about it. That is: will they treat it like a bounced check, although in this case, it was user error/technical limit. I have a flawless payment history with both other than this incident.

Thanks for any suggestions!

FICO Resilience Index: 64. Cards: 5/24, 2/12, 2/6. Accounts including loans: 8/24, 4/12, 3/6. Card CLs total $213,900, or $240,400 including the AU card. Cards (oldest to newest)

Authorized user / Corporate / Auto loans / Personal loan

Jnbmom · ‎05-13-2020

@KJinNC

My only experience is with Amex I made the mistake of inputting my bank info wrong by one number. The payment was returned and I immediately corrected the bank info, they held this against me for over a year . Zero CLIs and the payment reason was always listed. I hope you don't have the same fate as me

. I had since closed those low limit cards and well over a year later applied again and got a 10K starting limit , so I think and am off that list .

EXP 780 EQ 791TU 795

Anonymous · ‎05-13-2020

A bounced payment is a bounced payment no matter what the circumstances behind it are. It's likely been recorded in their algorithms now. The only thing you can do is make sure it doesn't happen again.

Gmood1 · ‎05-13-2020

I had this to happen with Amex. APR increased until the end of the promotion on the card. They charged a return payment fee but reversed it after I called in.

I was locked out of CLI and new accounts for 30 days.

I applied for another Amex card and was approved less than 60 days later.

I still have that card today. That was over two years ago.

longtimelurker · ‎05-13-2020

@Jnbmom wrote:
@KJinNC

My only experience is with Amex I made the mistake of inputting my bank info wrong by one number. The payment was returned and I immediately corrected the bank info, they held this against me for over a year . Zero CLIs and the payment reason was always listed. I hope you don't have the same fate as me

. I had since closed those low limit cards and well over a year later applied again and got a 10K starting limit , so I think and am off that list .

I once tried to pay Amex with an account that had been closed for at least 10 years and probably wasn't accessible any more. Amex just said that it didn't work, and if I didn't correct it within a week or so, my online PAYMENT priviliges would be suspended (presumably meaning I would have to send in a check, no threat to suspend charging). We fixed it and no apparent issues after that. So I think that is different from a returned payment where they are told insufficient funds, this was just an account that doesn't exist. Hopefully, OPs situation will be regarded as somewhat similar rather than a NSF case

OP, what bank was this? Only a few block external ACH (even for savings) and I would consider replacing one that did. The issue with savings/MM is the 6 withdrawals a month limit (currently optional by the Feds, up to the banks whether to relax) and if you pay multiple cards and/or multiple times a month, this limit can be exceeded.

Jnbmom · ‎05-13-2020

@longtimelurker wrote:
@Jnbmom wrote:
@KJinNC

My only experience is with Amex I made the mistake of inputting my bank info wrong by one number. The payment was returned and I immediately corrected the bank info, they held this against me for over a year . Zero CLIs and the payment reason was always listed. I hope you don't have the same fate as me

. I had since closed those low limit cards and well over a year later applied again and got a 10K starting limit , so I think and am off that list .
I once tried to pay Amex with an account that had been closed for at least 10 years and probably wasn't accessible any more. Amex just said that it didn't work, and if I didn't correct it within a week or so, my online PAYMENT priviliges would be suspended (presumably meaning I would have to send in a check, no threat to suspend charging). We fixed it and no apparent issues after that. So I think that is different from a returned payment where they are told insufficient funds, this was just an account that doesn't exist. Hopefully, OPs situation will be regarded as somewhat similar rather than a NSF case

OP, what bank was this? Only a few block external ACH (even for savings) and I would consider replacing one that did. The issue with savings/MM is the 6 withdrawals a month limit (currently optional by the Feds, up to the banks whether to relax) and if you pay multiple cards and/or multiple times a month, this limit can be exceeded.

I seriously tried to please my case as it wasn't a "bounced" payment, they really did not care to hear just said "over time" this wouldn't count against me. I guess their time was a year. I am sure this is not this case for all, just was with me with similiar circumstances

EXP 780 EQ 791TU 795

KJinNC · ‎05-13-2020

I don't want to pick on the bank. I had warning and should have known. Even if they had allowed these transactions, the monthly limit would bite me, because I tend to make numerous payments throughout the month. The only thing I wish was different was that one system or the other validated that the account could do ACH before letting me try to use it, but that might be complicated.

For those who lobbied unsuccessfully for the issue to be removed from your accounts, did you ask standard CSRs, or some other number? My Amex chat CSR gave me a phone number for, basically, collections (800-230-1284), and said they "will definitely help you." I am less confident than the CSR, but certainly worth a try. I haven't been able to get through so far due to technical issues on their end and/or wait time, but will try again tonight or tomorrow.

Also, any experiences with Citi of this type? Thanks!

FICO Resilience Index: 64. Cards: 5/24, 2/12, 2/6. Accounts including loans: 8/24, 4/12, 3/6. Card CLs total $213,900, or $240,400 including the AU card. Cards (oldest to newest)

Authorized user / Corporate / Auto loans / Personal loan

Jnbmom · ‎05-13-2020

@KJinNC wrote:
I don't want to pick on the bank. I had warning and should have known. Even if they had allowed these transactions, the monthly limit would bite me, because I tend to make numerous payments throughout the month. The only thing I wish was different was that one system or the other validated that the account could do ACH before letting me try to use it, but that might be complicated.

For those who lobbied unsuccessfully for the issue to be removed from your accounts, did you ask standard CSRs, or some other number? My Amex chat CSR gave me a phone number for, basically, collections (800-230-1284), and said they "will definitely help you." I am less confident than the CSR, but certainly worth a try. I haven't been able to get through so far due to technical issues on their end and/or wait time, but will try again tonight or tomorrow.

Also, any experiences with Citi of this type? Thanks!

Funny amex chat gave me a "number" and said they would help, they really didn't but hopefully you get better results.

EXP 780 EQ 791TU 795

Anonymous · ‎05-13-2020

@KJinNC wrote:
I don't want to pick on the bank. I had warning and should have known. Even if they had allowed these transactions, the monthly limit would bite me, because I tend to make numerous payments throughout the month. The only thing I wish was different was that one system or the other validated that the account could do ACH before letting me try to use it, but that might be complicated.

For those who lobbied unsuccessfully for the issue to be removed from your accounts, did you ask standard CSRs, or some other number? My Amex chat CSR gave me a phone number for, basically, collections (800-230-1284), and said they "will definitely help you." I am less confident than the CSR, but certainly worth a try. I haven't been able to get through so far due to technical issues on their end and/or wait time, but will try again tonight or tomorrow.

Also, any experiences with Citi of this type? Thanks!

Honestly if they didn't shut your accounts down, just let it go.