How to Avoid Credit Card Fees when Paying Online

Avoiding credit card fees when paying online can be tricky, and all the fine print needs to be carefully read. This is especially true with some credit cards that offer their cards to people with bad credit and charge fees for the card. Not only do they charge annual fees, but these companies may count on people with bad credit not paying bills on time or at the last minute and not reading the fine print to find out additional fees that will be incurred.

Difficulty: Moderate

Instructions

Things You'll Need:

• Credit card
• Computer
• Internet access
• Credit card online account

1. Before paying online, check for fees for this service. Take time to read the small print carefully because while many reputable credit card companies offer online services for free, some credit card companies try to take advantage of their customers by charging fees such as five dollars just to make a payment online. If this is the case, it is worth your money to do all that you can to pay by check, and send it at least ten days before it is due to make sure the credit card company receives it on time. The company will charge you a late fee if your check is not processed until after the date the payment is due.

2. If there are no fees for paying the credit card bill online, then check the information the credit card company provides online for how the company determines PAYMENT DATE. All credit card companies do not determine the payment date online the same and it is sometimes called the requested payment date. Many times the date you pay your bill online is not the same as the PAYMENT DATE. The payment date may be the day you pay your bill, it could be the day after, or even two days after. If you are paying your bill on Friday night, the payment date may not be until the following Monday which is not good if your bill was due Saturday.

3. Check what time and what time zone the credit card company uses to determine the payment date. If the credit card company uses Eastern Standard Time, and you are on Pacific Standard Time, your payment will be late if it is due at 5pm EST, and you pay it at 4:30pm PST.

4. Check for rush payment fees. If by chance you open your credit card bill account and find it is too late in the day to get a payment date for the following day, the day your bill is due, a rush payment may be needed. Even though a rush payment fee may be $12, it may be less expensive then having the payment date recorded as late and incurring a late fee on top of a black mark on your credit for making a late payment.

Tips & Warnings

• Online credit card payments are not for last minute payments. Some credit card companies require the online payment to be made three days before the bill is due. This policy may not become evident until the payment date schedule is examined. Because the company makes their policy of payment date clear, you may be charged a late fee even if you pay your bill the date it is due, but the payment date is recorded as the following day.
• Understanding the credit card company’s online payment policy can help you plan ahead to avoid late fees.

[msblakely7]

on 2/13/2009 Great info - thanks!

[Gourmet2Go]

on 1/20/2009 Great information thank so much for sharing!

[anixon84]

on 1/14/2009 The time zone aspect seems kind of tricky to me! Thanks for the heads up!