Many a time, we are sure that we have taken the necessary steps to enjoy the benefits of a financial product, say a credit card. But still there are times when we find ourselves in a difficult position. The reason: A problem at the other end. Though we have followed the procedure to a good extent, The smallest problem at the financial institution's end can impact our position greatly.
Rushabh holds a gold credit card from a private bank. He is very regular in his payments and has rarely paid any interest on the amount outstanding. Though the due date on his card is 25th, he ensures that the payment is made by 20th of each month so that he has time on his hand if there is any problem or confusion. Last month too he made his payments by 20th but after the due date he received a call from the bank, saying that the amount on his card has not been paid and thus will have to pay a penalty. Rushabh is perplexed.
- Always keep a record of credit card payments
- In net transfer, note down the unique reference number
- Immediate and effective communication with the bank always helps
Analysis
In every financial dealing, a great deal of attention needs to be paid to the procedure. Often a little bit of carelessness in this case can cause problems at a later stage. There are several ways in which the credit card dues can be paid. One of the ways is to deposit a cheque with the credit card-issuing bank. Increasingly a lot of customers are using new ways to complete the process, including a direct transfer from their bank account or online transfer and even a transfer using the ATM.
Was Rushabh a defaulter?
No. Rushabh has paid the amount on his credit card through online transfer using his bank. His bank account clearly shows that the amount has been debited but the credit card-issuing bank has asked him about the payment because this is not reflecting in their records.
What he should have done to avoid this?
When it comes to the question of paying credit card dues it is important that one takes careful note of the route that is used for the payment. The person has to ensure that he/she has a record of the transaction made. This will be helpful when one needs to show adequate proof to the card-issuing bank to prove that there is no fault on one's part.
Rushabh has made the payment by online transfer. In case of online transfer, a bank provides a customer a unique reference number when the transaction is complete. This has to be noted so that the number can be quoted whenever required in case there is some confusion at a later date. If Rushabh has noted this number, he can show that to the bank and avoid penalty. Other transactions involving use of technology also has a similar feature.
Is there other way for Rushabh to avoid penalty?
The other way in which this transaction is authenticated is by the entry in the bank from which the amount has been transferred. If there is a query regarding the payment then Rushabh has to provide even this statement so that the credit card-issuing bank can check their records and then verify and credit the payment to the right source. This will avoid the payment of any penalty and hence will not result in any additional charges.
What is the proper way to use this facility?
Every person needs to keep a proper record including unique transaction numbers for any payment made. This has to be backed up by the proper bank record showing the payment actually made. This is crucial to ensure that a person does not end up paying unnecessary charges. In many cases, a cheque deposited is lost, resulting in a situation where the amount remains due. Establishing the entire completion of the transaction is essential so that the payment is made in a proper manner where there is proof of payment. At the same time, immediate and effective communication with the card-issuing bank also ensures that the right impact is given.
