3 Things to Remember about Credit Card Payment Processing

A Credit Article Contributed by Kris Griebe

Processing Your Credit Card Payment Takes Time!

When your credit card company starts processing your payment, it may take a few days to post to your account. This is especially true if you have paid with a check. Often, the company will wait for the check to clear before they credit the payment to your account. If your payment was received the day it was due, then this can cause your payment to be late, which in turn will cause you to be charged a fee.

By sending in your payment with plenty of time to spare (try to shoot for sending it off at least two weeks before it is due), you will be sure that your payment will be received and processed well before it is actually due. This will save you from having to pay fees, and will also prevent your credit card company reporting a late payment to any of the major credit agencies (which could stay on your credit report for years to come! )

After Processing of Your Credit Card Payment is Complete, Your Balance May Not Be Lower!

If you have a high balance on your credit card, even after the processing of your recent payment, you may find that your total balance is still the same, or maybe even higher! If you pay the minimum amount, but your interest charges are greater than your payment, you could find your balance rising. Your payment will first be applied to any interest you have been charged. After this, any remaining payment will go towards your total balance. If your payment does not cover the full interest charge, then that amount will be placed onto your bill, and raise your balance.

This is one reason it is important to pay as much as possible towards your current balance. By not doing so, you could find your balance exceeding your credit limit, which will just earn you more fees and penalties, thus increasing your balance even further.

Paying the maximum amount possible will help ensure that your balance gets reduced, thus giving you more credit to use, or at least moving you towards having your debt paid off in full.

Processing Your Credit Card Payment May Cost You an Additional Fee!

If you pay your bill by phone, with a check (this is just one example), some companies will charge you a small fee for accepting this form of payment. If you are close to your credit limit, this small fee can put you over your limit, thus incurring more fees. Before you complete your payment, always find out if there is a fee associated with that form of payment.

You can contact the customer support center of your credit card company to find out which payment methods have a fee. By paying via a method with no fee, you will save yourself money, and the risk of being pushed over your credit limit. Never be afraid to ask a question. The customer service representatives are there to help you, and answer your questions!