Today I went online to pay a credit card bill that is due on the 4th. Today is the 1st - a holiday. Their payment schedule/timing states that if I made a standard payment today it would be posted on the 5th - one day late - and incur a late charge of $30. But - that if I made a "rush" payment it would post on the 4th - the due date - but that this rush payment would cost me $12.95. So I made the "rush" payment. $12.95 is still lower than $30, and won't harm my payment history with this cc - Orchardbank. But still - this sure sounds/smells like blackmail/extortion. Pay it now (rush $12.95) or you'll get a late fee of $30.
While I don't like these stupid fees and payment delays (especially when some companies can clear an online payment in less than a couple of minutes), I think it falls well short of extortion. For example, you could have paid it last week or the week before. It was your choice to wait until almost the payment deadline to make the payment, after all. (I'm not saying I've never done that, just my procrastination or waiting for payday isn't the bank's fault).
That's true. And they tell you when you have to make a payment to have it posted on time. I had one time when I forgot my Wal-Mart bill until the last minute. I went online and saw that it took 3 days to post. So I paid all but the minimum amount online, took the minimum amount to the store where it posts the same day.
It's still blackmail/extortion. Here they are propagandizing the "paperless statement ", "save a stamp/pay online " crap - which benefits them - no paper/mailing expenses, but don't want to extend the same regard to customers. Something stinks big time.
It isn't extortion. You made the choice to push it to the deadline. No one is asking for money they're not entitled to. You, again, have the choice to pay the express fee and are under contract with respect to the late fee (by choice, you didn't "have" to get the card).
Ok, maybe not extortion BUT definitely blackmail: Pay now and incur a $12.95 - but if you don't your payment will be late and we'll hit you with a $30 late payment fee.
Well, I have to disagree. It's simply capitalism (seasoned with a pinch of opportunism). Companies that sell to the more distressed end of the economy do this alot. (e.g. drug dealers, payday loan places, low-score credit cards, sub-prime loan brokers, etc.) The credit card companies know their target demographic is strapped for cash for whatever reason and they know that their target demographic will wait until the last possible minute to make a payment. So, because you (the unsuspecting customer) have no choice but to pay at the last minute, they can pretty much charge whatever they want for last-minute payments. It's kinda the same logic that applies to buying food in an amusement park. The vendors know that you (in the general population sense) would more likely pay $8-10 for a $2 hamburger than go out of the park, find a drive-thru fast-food joint, come back, try to find a new parking space, etc. So they charge $8-10 for the $2 hamburger (and also post signs that prohibit you from bringing food into the park, etc.) The credit card companies know that you'd rather pay $12.95 to pay at the last minute than pay earlier in the cycle because they know your options are limited. If you had a higher credit score, better income, and more options so that you could pick and choose between credit cards you'd quickly dump anyone that had such fees and take your business to someplace else. The higher-end cards know this so they don't do this (as much). Bottom line, you're playing into their hands and they are laughing at you all the way to the bank. The best thing you can do is not play their game. But for many people, that's even harder that paying an additional $12.95 at the end of the month.
The difficult part is that you're kicking yourself for waiting to the last minute. The best way to get around their system is to use the "automatic withdrawal" system most companies offer. Have the minimum payment amount deducted from your bank account for its sue date automatically. The payment will come out on the "business day", but the transaction posts on time for the payment due date. Plus, you never have to worry about this again. Just make sure the funds are in the account!
I've done this for almost all of my accounts (the ones that will do it), including phone and insurance. I just have the minimum payment debited. Then I can pay the rest as I please. I may pay a little interest, but no late fees and no lates on the credit report. If my payday falls a day or two after the payment date, the little interest I pay is surely less than the late fee. And there's a peace of mind that comes from knowing you won't have late pays.
