GeorgeJ

I applied for the Barclays USAir Mastercard because of the 15,000 mile bonus and added bonus of 10,000 additional miles if you did a balance transfer of $10,000+ at 0% interest. Unfortunately, I also charged $4000 on the card the first month.

Barclays charged a 1% fee for the $10,000 transfer. OK. When I received my first statement I sent in the $4000 purchase balance, expecting to find an exact $10,000 balance on my next statement. Whoops. The statement shows a balance of $10,063.45 (and a posting date a day after the payment was due, even though my tracking number says it was delivered 2 days early).

Bottom line, it wasn't a late fee & interest they were trying to ding me for, it was because they applied 100% of my payment to the 0% balance and not to purchases. I had heard of applying certain percentages to this and certain percentages to that, but this was the first time I've ever heard of applying all of your payments to the balance with the lowest percentage rate (which in this case was zero). The "account manager" (their name for the front line people) I spoke with agreed to waive the finance charge, but I'm sure they won't do that next month, or the month after that...

While I admit that it's at least partly my stupidity for being in this situation, my feeling is that Barclays Bank is totally out to screw the customer bigtime with their policy of applying 100% of your payment to the balance with the lowest percentage rateApplying part of your payment to the balance with the lowest rate is one thing (don't particularly care for that much either), but to apply it allto the zero percent balance is why banks need to be regulated.

jghassell

While I'm not defending the practice in general, all credit card companies apply payments to the portion of your balance with the lowest interest rate. It isn't just the Barclays card.

Good warning, though, for folks who might not realize it.

PSU Mudder

This is true. If you do a balance transfer at a low rate, you pretty much have to shut down usage of that card.

PCMflyer

The OP also warned about them holding payments and posting them one day after the due date to generate interest and late charges. I also had that experience.

I pay all credit card bills in full within 2 days of receipt of the bill. On my fourth monthly bill with the US Air Mastercard, they claim my payment was received one day late. It was mailed ten days before the due date.

When I called, the agent immediately waived the late fee and interest. This seemed to confirm that they knew they had posted many payments late. I have never used the card since then. That was sad for me because they were giving 1.5 miles for every dollar. But I didn't want to bank with someone who I felt was holding payments until one day after the due date to create fees.

Beware of this bank.

lt1GM

Having worked at a major credit card issuer, I can tell you that it is very unlikely they would intentionally hold payments to generate fee revenue. The potential regulatory trouble is just not worth it.

Having mailed your payment 10 days before the due date and being slapped with a late charge, I guarantee you the USPS is to blame.

I've always used Juniper's online payment service to deduct from my checking account. You can process a payment on the due date befoe 7pm and it's still on time. I missed that deadline by an hour once and I've not been hit with the fee. Works fine!

Mhttoanywhere

Every credit card applies payments to the lower interest balance first.

kranky

EVERY credit card I've ever had does exactly the same thing. Payments are applied to lowest APR balances first.

It's a good reminder to always read the entire terms and conditions to make sure there is nothing that will bite you unexpectedly.

Richard1148

I was thinking about getting this card, but don't want any trouble with payments posting late. I pay all of my current credit cards online to avoid any problems of it being late due to the mail or possibly the credit card company holding the payment. Doesn't Barclays have online bill pay?

aztimm

The only issue I have with this card (a new cardholder here) is that I never got an email letting me know that my statement had closed. I happened to check my Dividend Miles account and saw the miles posted, which prompted me to check my card balance. I did verify that I have my options setup for email notification, and have the correct email address. I caught it in plenty of time to do an online payment, so it isn't a major issue.

The strange thing is that I have the same type of options for my Hilton Honors AMEX, and that works like clockwork, absolutely no issues.

My emails from US Airways in general are hit or miss, so I'm wondering if this is at all connected with that issue.

Anyone have any feedback?

kudzu

My experience with the Barclays MC is exactly the opposite - I get too many emails from them. I prefer the paper statements, and so.... first I get an email saying I got a bill and it can be viewed online. Then 10 days or so before the due date, I get another reminder email that the bill is due. I send in a check snail-mail, and a few days later I get another email saying they've received payment. So far, I have not been dinged for a late payment sent the old-fashioned way a week or so before the due date.

I used to have a problem receiving emails from US, but that's now solved. I seem to receive everything...upgrade email notification, statements, etc

wsflyer

I have had this card for a year. I have scheduled a recurring payment online of the statement balance on each due date. Now, I don't have to do anything each month to pay my bill--it's taken care of automatically. I also get e-mails reminding me that the scheduled payment is coming up.

CPMaverick

As has been said:

Every
Other
Card
Does
This!

It is in the T&C... Sorry you got caught out.

biggestbopper

It is always nice to have input from insiders, so thank you for your comments.

IMHO, this has been common practice for many credit card companies (no doubt, not the fine company you worked for) and some have gotten nailed. The example that comes to mind is Providian which was was essentially destroyed a few years ago (may be back in a new and different form with different management and practices) after the San Francisco District Attorney, with help from consumer groups who provided info, went after them for straight out cheating card users by not posting payments on time and sticking on late fees to enhance profits. For more info see, e.g., http://www.pirg.org/consumer/bankrupt/bankrupt2.htm or http://www.lieffcabraser.com/providian.htm

Interestingly, the Federal Banking Regulators tried to protect Providian and its illegal activities and only joined the SF D.A. after there was lots of press. Evidently the initial evidence came from the Oakland Better Business Bureau's complaint files, so, I guess it can pay to complaint to the BBB.

jghassell

There is online bill pay from the website.

I pay via one of two methods -- if I'm paying the balance at the absolute last minute, I'll use the web site before 7 PM on the due date. If I'm not waiting until the last possible moment, I'll use my bank's online billpay service and send an electronic payment that way.

Neither of the two methods has resulted in a problem for me. No interest or late charges ever in the 13 months I've had the card. I've also had the occasion to call them once or twice and they've been most helpful and efficient on the phone, although once I was alerting them to travel in Egypt and the other time I was adding an authorized user so they weren't the most involved of calls.

oopsz

Checkfree (online billpay from your bank checking account) to barclays is electronic and generally takes one business day to post. I use HSBC. Convenient as all hell.