A Warning about Barclay Auto-Payments

Discussion in 'General Discussion | Credit Cards' started by Ed Chandler, Dec 3, 2013.  |  Print Topic

  1. Ed Chandler
    Original Member

    Ed Chandler Silver Member

    Messages:
    430
    Likes Received:
    501
    Status Points:
    645
    I haven't seen this discussed here, but Barclay starting to offer more competitive products, so I think it's worth mentioning. Old-timers, you probably already know this (but a reminder won't hurt). Newbies, take note.

    If you set up a Barclay card to automatically pay itself your choices are "minimum payment due" and "statement balance." Most banks offer similar options, with some being called "current amount due" or sometimes "current balance." For those who may not always read the fine print, you need to be aware that Barclay does exactly what it says. With a Barclay auto-payment, if you choose "statement balance", they will pull the statement balance from your checking account, regardless of any payments you've already made.

    Let me offer a comparison with Chase, just to make sure the difference is clear:

    With Chase, if you're set up with auto-pay and your statement balance is $2,000, they will pull $2,000 from your account when the bill is due. However, if you make a payment of $1,000 a week before your payment is due, then they will only pull the remaining $1,000 from your account.

    With Barclay, in the same circumstances, they will still pull the full $2,000 statement balance from your account. Even if you've already paid the bill off in its entirety and have a $0 balance, they're still going to pull $2,000 out of your account.

    I'm not accusing them of being deceptive, because that is exactly what the checkbox says, but it's critically different from the way other banks handle things and it can be a rude surprise if you're not prepared for it with sufficient "float" in your checking account.
     
  2. newbluesea
    Original Member

    newbluesea Gold Member

    Messages:
    2,676
    Likes Received:
    4,728
    Status Points:
    2,570
    I believe BOA (and a couple other banks I can think of) will do something similar, in that if you have an automatic payment set up and you make a payment the automatic will still be debited from your account.
    Never heard of any bank debiting more than the card balance however.
     
    Last edited: Dec 3, 2013
  3. satman40

    satman40 Gold Member

    Messages:
    2,470
    Likes Received:
    2,451
    Status Points:
    1,325
    Auto pay keeps it in my account till the last minute, in days of old we did pay early so we could charge more...

    United a few years ago would at one time only give you 10k in miles per month, after that forget it, found that out the hard way....

    My CC limits are higher now, so no more pre pays...we have many cards in today's world...back then it was Citi, and Chase and only 2 cards...
     
  4. bluefire

    bluefire Active Member

    Messages:
    25
    Likes Received:
    20
    Status Points:
    85
    This is definitely good info. I use the statement auto-pay with Amex and never noticed any problems. I just got the Barclay Arrival and actually just a few minutes ago was on the site to figure out how I wanted to set up my auto-pay with them. I didn't do it yet, and it just so happens I came across your post in the meantime! Thanks.
     
    travelpye likes this.
  5. rajshekhar

    rajshekhar New Member

    Messages:
    1
    Likes Received:
    1
    Status Points:
    10
    Great Post! I manually pay my CC in full every month, the day after Statement closes, that way I don't have any excuses later!
     
    LETTERBOY likes this.
  6. servo

    servo Silver Member

    Messages:
    736
    Likes Received:
    1,031
    Status Points:
    825
    The solution to this is manually pay everything. Autopay just asks for trouble. There is no room for laziness in this game if you're spending $20k+ in man. spend a month like I'm doing.
     
  7. PhoenixDown

    PhoenixDown Silver Member

    Messages:
    38
    Likes Received:
    41
    Status Points:
    120
    Excellent point; I was actually wondering if that would happen with the "statement balance" option. At first I said no way but then I realized that some companies really suck at billing so its bound to happen sometime.

    I am currently setting my recurring monthly charges to be auto-paid by my Credit Card. Give or take 10% I should be okay but this way I can move from a monthly review to a quarterly review.

    As for CC's ... I may eventually have it set to autopay the minimum but I'd like to keep control of that process and manually review/approve the payments each month.
     
  8. Ed Chandler
    Original Member

    Ed Chandler Silver Member

    Messages:
    430
    Likes Received:
    501
    Status Points:
    645
    Hey, now, be nice. I don't think of it as "lazy", just a tool like any other that can save you time if you know how to use it ... hence my post.
     
    vickers and Newscience like this.
  9. milestomemories

    milestomemories Active Member

    Messages:
    8
    Likes Received:
    1
    Status Points:
    75
    I have had the same thing happen to me. I have my Barclay's account setup for auto payment of just the minimum in case I forget to make the payment. If I go in and manually pay it then I must also cancel the auto payment for the month. It is a pain, but I learned when my bill was double paid one month. (Back then I had it set to pay the entire balance!) I ended up with a $900 credit. Easily fixed with two VRs though!
     
  10. vickers

    vickers Gold Member

    Messages:
    1,421
    Likes Received:
    2,111
    Status Points:
    1,225
    Although convenient, I just dont trust auto-pay personally.
     
    servo likes this.
  11. satman40

    satman40 Gold Member

    Messages:
    2,470
    Likes Received:
    2,451
    Status Points:
    1,325
    We pay in full every month and have for many years, and never had a problem..auto pay

    Knock on wood...

    Truth is I do not trust the Post Office...
     
  12. servo

    servo Silver Member

    Messages:
    736
    Likes Received:
    1,031
    Status Points:
    825
    Ed, no offense intended - I personally don't trust automation to work as I expect it to, and I honestly believe that people who are putting as much effort into man. spend as many of us are cannot afford to trust automated systems. I understand and empathize with the desire to cut corners, because this game can take a LOT of effort to scale, but payments are a HUGE deal if something gets missed and you end up getting no sympathy from the bank. Risk-reward balance just doesn't compute for me, and is worth a little more of my time (I do a weekly CC review and pay anything that came due that week, either with online billpay, or other brick and mortar methods) to ensure bills are paid appropriately and on-time.
     
    LETTERBOY likes this.
  13. Ed Chandler
    Original Member

    Ed Chandler Silver Member

    Messages:
    430
    Likes Received:
    501
    Status Points:
    645
  14. satman40

    satman40 Gold Member

    Messages:
    2,470
    Likes Received:
    2,451
    Status Points:
    1,325
    It is not just Barclay, Chase did the same thing to me, but Thanks to Ed's post I had my eyes open, and will pay the whole damn thing...

    One of my SW Cards billed OK, the other one just ask for the minimum,

    Again thanks ED and a like will go your way...

    I have college rentals, and Love Auto Pay, for rent checks...
     

Share This Page