PayPal MC - BEWARE!!

[iamdetermined]

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!!!

[JSS3]

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.

[ridgebackpilot]

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@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.

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+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.

[iamdetermined]

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.

[K-in-Boston]

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@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.

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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.

[Credit12Fico]

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.

[iamdetermined]

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.

[iamdetermined]

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.

[Azza]

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".

[Anonymous]

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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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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.