AIB business credit card

fac

I have a business credit card that gets paid off by direct debit each month. Last payment didn't go through as was not enough funds in the acount it takes the debit from. This was rectified immediately and the payment went through 2 days later. However it was not enough for AIB who deactivated the card as soon as the payment was not met and said it would be enabled again in a week. In the meantime another 10 euros has been taken for late payment and I have no business credit card for payment of programmers for my business. It seems harsh that even though the payment has been made and a penalty paid I still dont have use of the card which is affecting my business. Does anyone know is this standard procedure for other business credit cards?

dudara

Not a Consumer Issue - Moved to Banking & Insurance & Pensions

dudara

OP - what is in the T&Cs of the credit card? Because it's a business credit card, the T&Cs are going to be different to a normal personal credit card.

fac

I'll be honest I didn't read the t&c's in detail. I applied for a busines credit card and agreed to pay monthly by direct debit.. I did not think they would penalise so much for late payment.. I transferred funds as soon as I realised was not quite enough there to meet the bill & it went through 2 days later.. I dont see the need to block the card for a week..

dotsman

fac wrote: »

I'll be honest I didn't read the t&c's in detail. I applied for a busines credit card and agreed to pay monthly by direct debit.. I did not think they would penalise so much for late payment.. I transferred funds as soon as I realised was not quite enough there to meet the bill & it went through 2 days later.. I dont see the need to block the card for a week..

What kind of business credit card is it?

nlgbbbblth

Are all business cards "pay in full by direct debit each month"?

As opposed to personal cards where you can pay what you want off.

dotsman

nlgbbbblth wrote: »

Are all business cards "pay in full by direct debit each month"?

As opposed to personal cards where you can pay what you want off.

As far as I know, most/all are. After all, a business is supposed to be well managed and any care purchases should be accounted for pre-purchase (as opposed to individual people who, although should still pay off their debt in full each month, are more likely to financially "clumsy").

However, with regards whether they will deactivate the card upon missing a payment, depends on the customer (and sometimes, the card). In relation to the customer, it is more to do with how cash-rich the customer is, size of the company and their history with the bank. A small, start-up with little cash reserves or bigger business with a recent history of financial difficulties (realistic possibility that non-payment is down to the company being in trouble) is far more likely to have their card stopped rather than a large company with plenty of cash reserves in the same bank (non-payment more likely to be an administration error).

nlgbbbblth

dotsman wrote: »

As far as I know, most/all are. After all, a business is supposed to be well managed and any care purchases should be accounted for pre-purchase (as opposed to individual people who, although should still pay off their debt in full each month, are more likely to financially "clumsy").

However, with regards whether they will deactivate the card upon missing a payment, depends on the customer (and sometimes, the card). In relation to the customer, it is more to do with how cash-rich the customer is, size of the company and their history with the bank. A small, start-up with little cash reserves or bigger business with a recent history of financial difficulties (realistic possibility that non-payment is down to the company being in trouble) is far more likely to have their card stopped rather than a large company with plenty of cash reserves in the same bank (non-payment more likely to be an administration error).

Such business cards do not incur interest and I imagine their systems are not geared up to levy interest. I know that manual payments are generally not permitted either.

Therefore I am surprised the branch were permitted to bounce the direct debit. I would have thought that all business card direct debits had to be paid - even if they force an overdrawn position on the current account. That in itself would be a trigger for the bank to take action [i.e. block / temporarily suspend the card]

dotsman

Yes, for all intents and purposes, business credit cards are treated more like charge cards.

With regards their system, I'm not sure. On the one hand, their systems obviously handle the ability to charge interest for the personal cards, so don't see why they can't for the business cards - unless they merely don't have that feature "activated" for business cards.

With regards the the current account, perhaps the ops current account is with a different bank? Even if it's with AIB, they may simply have a single rule to decide whether to honour a direct debit or not, regardless of where the payment is going (the DD system may not have sight of the fact that the payee account is a business credit card).

fac

In answer to your earlier question dotsman its an AIB visa card. Problem is I have 2 business accounts, one with UB also which 90% of my business is done through other account is with AIB & this one is linked to the card, think the answer is to change the arrangement to take from other one instead.. my only issue was with deactivating the card for a week.. anyways thanks for the replies..