NextCard payment holding weirdness

Discussion in 'Credit Talk' started by DaveLV, Jun 20, 2001.

  1. DaveLV

    DaveLV Well-Known Member

    Check this out from NextCard's website:

    "Your available credit may not be adjusted immediately after payment is received. Payments are subject to payment holds. The length of this holding period will vary by payment type:

    Money Order: one day from the receipt of payment
    ClickPay: 7 days from the receipt of payment
    Personal Check: 14 days from the receipt of payment"

    How weird is this? I can understand the personal check part, but holding ACH payments for seven days??? Money orders for only a day? I can tell you that I used to work for a place that issued money orders and it would be far easier for someone to grab a stack of blank money orders and imprint them and use them than it would be to initiate a fraudulent ACH transfer.

    And even the 14 days for a personal check -- that's more than half of the account grace period. Since I have to imagine that most people pay their bill by check, it's a good way for NextCard to stop people from taking full advantage of their credit lines for the allowed grace period.

    Since I only opened my account last March, I haven't really had enough personal experience with NextCard to have formed a real opinion about them. I make sure to use the card at least once or twice a month but I've never really had occasion to call them about anything. I'm beginning to wonder if I want to keep this account.

    Providian, Capital One and Household/Orchard all let you pay online and have access to the portion of your credit line freed by your payment right away.

    GEORGE Well-Known Member

  3. tmitchell

    tmitchell Well-Known Member

    Their payment system sucks...They WILL hold it too. I don't use the click-pay option anymore. This will be the first card I cancel when I am able to!

  4. sl1029

    sl1029 Well-Known Member

    Hmmm....the last two times I made clickpay payments, they were credited w/in 2 days - same as a lot of other ACH payments I make....maybe they just hold the first one or two to until you have a clickpay payment history?
  5. tmitchell

    tmitchell Well-Known Member

    The payment will credit to your account almost immediately; HOWEVER, you won't have access to these funds.

    When I made my first payment of $150, I used click-pay. The following day, their website said I had $150 available. I went to use it and was declined! I was a tad embarassed.

    I immediately called them and they said that the account is credited BUT you can't use the funds until after the hold period. I explained it was an ACH but they didn't seem to understand!

    The worst part was 2 days later, the funds were taken from my checking account but Nextcard STILL would not release the hold until I sent them a copy of my bank statement!

    I told them that they were the one's debiting my checking account so they should know almost immediately if the funds are there. They told me it wasn't that easy.

    Like I said, this will be the first card I cancel when I am able to!

  6. ble103

    ble103 Well-Known Member

    When i had a nextcard, i never had a hold on my availiable credit no matter how much i paid them.I have just recieved an amended agreement from my discover card that claims that they will not restore my availiable credit until my check clears.That is not so,i have just paid a large amount off,and they restored my availiable credit even tough they amended my agreement with their new notation by not restoring my availiable credit until my bank pays them my check that i have written to them.I pay them on their website.I think it is just risk related as far with paying them.I am not saying that a person is going to write a bad check but most creditors are just being very careful with certian people.Some people really try to burn their creditors with bad checks,and if a person really would only write just one bad one,that is enough to qualify for payment holds,what do you think on this?
  7. aigle

    aigle Well-Known Member

    Do you folks experiencing ACH payment holds have the Nextcard subprime offerings? Holding payments like this is a very sleazy thing to do in my opinion.

    I only knew that Direct Merchants Bank held payments, and of course, CCB and Providian, but Nextcard? I'm suprised to hear it.
  8. tmitchell

    tmitchell Well-Known Member

    Unfortunately, yes

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