Hi,
For general information, I am sharing something that may matter to many of you.
Most of you must be aware of Dates that matter in Credit cards, Like Txn Dates, Posting Dates/Settlement Dates, Statement Generation Dates and Due Dates. But here I am sharing something that can be a matter but is neglected by many people while using offers.
1. Many banks send us CC offers with a last date mentioned in TnC. But actual last date is not what you think.
If, say HDFC Banks sends you a spend based offers that has last date as 30/31 then your txn done till 28/29 will only be counted under offer. In Credit cards, whatever txn we do is settled in system only on 3rd day. The transaction done on 29 in a month having 30 days like June settles on July 1 so if you had an offer that had last date as 30th June and you did txn on June 29, it won't be counted towards offer. Similarlly, in a month with 31 days like July, txn done on 30th will be posted on Aug 1. So any offer you had till July 31st means you can only do txn till July 29 which gets settled on July 31st. In case you did on July 30 thinking you still had time, you won't get offer benefit.
So remember the dates of txn. Those who knew how banking system works and Hold Amount and Escrow account are very well aware of what I am talking. Whenever we do txn via cards, Credit or Debit, the merchant gets money only of third day. Although you see debit instantly but this amount is kept on hold and in case of failure/no claim by merchant or receipt of failure sent by merchant, it is reverted/refunded back to source account on third day automatically.
2. Txn just before statement generation date:
Suppose, your statement generation date is 14th of every month.
Txn done till 12th of month will be posted against this statement but if you do txn on 13th/14th itself then this will be posted in next statement because txn of 13th will be settled under statement on 15th and txn done on 14th will be settled on 16th of month. Same is when you make a payment or receive refund for failed txn. If refund is within 3 days before statement generation it will be settled in same statement but any amount refunded on 13/14th of month will be settled in next statement only.
So for new txn, don't wait for next day after statement generation, you can do it 1+SGD (Statement Generation Date) also.
3. While making Payment.
Suppose you due date is 5th of month then you need to make payment atleast a week or 3 days before to get it settled. If you make using same bank netbanking these are settled within few hours or even BBPS ones. But if it is third pary then make sure you do it till 2nd of same month. Here also working days matter. Suppose on die date i.e 5th and 3rd and 4th was a holiday then you should plan it to pay on 31st or 1st of month so that 3 working days are counted.
4. Dates and Reward Points.
Here I will take example of HDFC Millennia CC. Most of Millennia CC users know that we get 5% cashback on 10 merchants upto Rs.1000 a month. Here also if txn is done on 29/30 or 30/31 as per month then it gets settled next month on 1st/2nd and reward points will be counted for next month not this month.
Example: You did txn of Rs.10000 on Amazon/Flipkart or other 8 merchants on June 20th. The txn got settled on June 22. Your 500 cashback points will be counted in June month cycle. Suppose you did another txn of 10000 on these merchants on June 29/30 which posted in statement on July 1/2 respectively, then this will be counted under July cycle 1000 max. cashpoints quota. So if you think you will do 20K txn in July and get 1000 for June and July also then be alert you will get 500+1000 only. So if anyone ever did txn on 29/30 or 30/31 for Rs.10000, do remember to do leftover txn quota only i.e 10K.
So posting dates in Credit Card industry matter more than transaction dates.
For general information, I am sharing something that may matter to many of you.
Most of you must be aware of Dates that matter in Credit cards, Like Txn Dates, Posting Dates/Settlement Dates, Statement Generation Dates and Due Dates. But here I am sharing something that can be a matter but is neglected by many people while using offers.
1. Many banks send us CC offers with a last date mentioned in TnC. But actual last date is not what you think.
If, say HDFC Banks sends you a spend based offers that has last date as 30/31 then your txn done till 28/29 will only be counted under offer. In Credit cards, whatever txn we do is settled in system only on 3rd day. The transaction done on 29 in a month having 30 days like June settles on July 1 so if you had an offer that had last date as 30th June and you did txn on June 29, it won't be counted towards offer. Similarlly, in a month with 31 days like July, txn done on 30th will be posted on Aug 1. So any offer you had till July 31st means you can only do txn till July 29 which gets settled on July 31st. In case you did on July 30 thinking you still had time, you won't get offer benefit.
So remember the dates of txn. Those who knew how banking system works and Hold Amount and Escrow account are very well aware of what I am talking. Whenever we do txn via cards, Credit or Debit, the merchant gets money only of third day. Although you see debit instantly but this amount is kept on hold and in case of failure/no claim by merchant or receipt of failure sent by merchant, it is reverted/refunded back to source account on third day automatically.
2. Txn just before statement generation date:
Suppose, your statement generation date is 14th of every month.
Txn done till 12th of month will be posted against this statement but if you do txn on 13th/14th itself then this will be posted in next statement because txn of 13th will be settled under statement on 15th and txn done on 14th will be settled on 16th of month. Same is when you make a payment or receive refund for failed txn. If refund is within 3 days before statement generation it will be settled in same statement but any amount refunded on 13/14th of month will be settled in next statement only.
So for new txn, don't wait for next day after statement generation, you can do it 1+SGD (Statement Generation Date) also.
3. While making Payment.
Suppose you due date is 5th of month then you need to make payment atleast a week or 3 days before to get it settled. If you make using same bank netbanking these are settled within few hours or even BBPS ones. But if it is third pary then make sure you do it till 2nd of same month. Here also working days matter. Suppose on die date i.e 5th and 3rd and 4th was a holiday then you should plan it to pay on 31st or 1st of month so that 3 working days are counted.
4. Dates and Reward Points.
Here I will take example of HDFC Millennia CC. Most of Millennia CC users know that we get 5% cashback on 10 merchants upto Rs.1000 a month. Here also if txn is done on 29/30 or 30/31 as per month then it gets settled next month on 1st/2nd and reward points will be counted for next month not this month.
Example: You did txn of Rs.10000 on Amazon/Flipkart or other 8 merchants on June 20th. The txn got settled on June 22. Your 500 cashback points will be counted in June month cycle. Suppose you did another txn of 10000 on these merchants on June 29/30 which posted in statement on July 1/2 respectively, then this will be counted under July cycle 1000 max. cashpoints quota. So if you think you will do 20K txn in July and get 1000 for June and July also then be alert you will get 500+1000 only. So if anyone ever did txn on 29/30 or 30/31 for Rs.10000, do remember to do leftover txn quota only i.e 10K.
So posting dates in Credit Card industry matter more than transaction dates.
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