PayPal MC - BEWARE!!

[NoMoreE46]

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. ... 

[Anonymous]

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@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. ... 

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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. 

[AverageJoesCredit]

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@Anonymous wrote:

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@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. ... 

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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. 

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Lol, very true.  +1

[AverageJoesCredit]

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@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.

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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 . 

[Brian_Earl_Spilner]

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@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".

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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.

[Anonymous]

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@Brian_Earl_Spilner wrote:

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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.

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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!

[Rogue46]

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@Brian_Earl_Spilner wrote:

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@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".

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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"

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[frugal47374]

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.

[UpperNwGuy]

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@Anonymous wrote:

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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.

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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.

[Credit12Fico]

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@UpperNwGuy wrote:

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@Anonymous wrote:

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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.

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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.

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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.