MBNA Credit Card payments

fathersymes

where is my money for 5 days when I pay my Credit Card bill? Had an arguement with them and AIB recently. MBNA denied they were using my money and getting interest on it, same with AIB (your money goes into MBNA's AIB account when you make a payment).

Is there any recourse to sorting out this rip off?

is_that_so

There is a system where all these things are processed and used by all the banks. I had the same problem a good few years back when a ch I lodged came out of the payees account but I could get funds for three days. I got them to agree to credit my account immediately when I lodge cheques. TBH nothing you can do here,apart form making sure you get your payments in on time.

Gegerty

Is it not simply that you've to allow 5 days for the transaction to be processed? It's unlikely to take 5 days to do it but more than likely it takes 5 days before they even get around to do it.

fathersymes

My issue is that if I go into the Bank or Post Office and give them 1,000euro cash, this money is being used by someone and I'm not getting the benefit, they are. When they get this money from the public, probably 100's of millions each month at 3.6% deposit rate, a lot of money being made.

I believe this doesn't happen in Europe, everything is cleared within 24hours. It's all electronic processing anyway and probably real time.

it's about time someone did something about it.

muffler

I never have a problem with them at all. I always pay by cheque and on most ocassions my credit card account is credited for the amount of the cheque usually about 4 or 5 days after I post it. And that includes the time it takes to get through the postal system.

Tazz T

When I was with MBNA, they were taking over 2 weeks to post payments to my account and trying to charge me late fees. Then they lost a payment which took me over three months to get back.

I'm no longer with them. There are better credit cards with better service out there. If I was you, I'd move.

Gurgle

fathersymes wrote:

where is my money for 5 days when I pay my Credit Card bill? Had an arguement with them and AIB recently. MBNA denied they were using my money and getting interest on it, same with AIB (your money goes into MBNA's AIB account when you make a payment).

Is there any recourse to sorting out this rip off?

Thats the biggest rip-off you can think of complaining about at the moment?
Absolutely amazing.

Every bank transaction takes 5 working days to be finalized.
Most banks will credit the receiving account in advance of the funds clearing, simply to avoid these complaints.

MBNA, being entirely a credit-card company do not.
If you know it takes 5 working days for a payment to come through, you have to make the payment 5 working days before its due date.

My MBNA account is at 14.9% interest, so those 5 days are worth 0.2% of the payment at MBNA's rate or 0.05% ish at deposit rates.

Have you ever made a payment where these numbers add up to a significant amount of cash?

MrPudding

Gurgle wrote:

Thats the biggest rip-off you can think of complaining about at the moment?
Absolutely amazing.

Every bank transaction takes 5 working days to be finalized.
Most banks will credit the receiving account in advance of the funds clearing, simply to avoid these complaints.

MBNA, being entirely a credit-card company do not.
If you know it takes 5 working days for a payment to come through, you have to make the payment 5 working days before its due date.

My MBNA account is at 14.9% interest, so those 5 days are worth 0.2% of the payment at MBNA's rate or 0.05% ish at deposit rates.

Have you ever made a payment where these numbers add up to a significant amount of cash?

I think he is asking generally where the money is and making the point that it adds up to a lot of money when you consider that he is not the only person whos money goes missing for 5 days.

He has not said his payments are late as a result of this so I think we can assume to is factoring it in to his payment schedule.

I think it is a valid question to ask. I always assume it is tied up in a clearing house once sent on from where you lodge it. From there it goes to the bank of where you are sending it. I don't know if each transaction is handled in real time but I think it is most likely handled by a batch job. If you assume the batch job run once per day if you payment is made after the cut off time for that days job it will not be processed until the next days job. There is a day right there.

Like I say, I don't knwo how it work but I would imagine they have a well rehearsed excuse / reason.

MrP

MrP

muffler

I know that Ulster Bank and NIB are now clearing cheques within 1 working day of them receiving them providing they are drawn from the same bank. (same day clearance if presented before 11 Am or something like that.)

For them to clear cheques drawn from other banks I think it is about 3 working days. I got literature out from both those banks recently announcing these details but I only read part of it so I am open to correction.

Dont know what the story is with AIB

smashey

AIB can no longer accept MBNA payments as of March 1st. I always pay mine at the post office and it is usually cleared on my account the next working day, if not the same day.

Savman

yep Post Office best option for MBNA payments

Thomas

I electronically transfer my MBNA payments directly into their AIB account and the balance is credited to me by MBNA the day after it arrives in their account. Doing it electronically is much handier and quicker than the PO etc.

Tom

Savman

Thomas wrote:

I electronically transfer my MBNA payments directly into their AIB account and the balance is credited to me by MBNA the day after it arrives in their account. Doing it electronically is much handier and quicker than the PO etc.

Tom

you must be AIB then because the same process from my BOI a/c takes 5 feckin days :mad: