The Truth in Lending Act requires that:
- The due date must be the same day each month. The due date could be set as the last day of the month or it could be a specific date in the month, such as the 4th.
- If the payment due date falls on a weekend or a federal holiday when the bank does not accept or receive mailed payments, then any mailed payment received by the bank before the cut-off time on the next business day would be considered an on-time payment.
- The payment cut-off time cannot be earlier than 5:00 p.m. on the due date.
If you mail a payment and the due date falls on a federal holiday, then the bank must receive your payment before the cut-off time on the next business day after the federal holiday for your payment to be on time. However, if the bank accepts or receives payments on the due date by a method other than mail—such as electronic or telephone payments—and you make a payment using one of these alternative methods, you would still need to make the payment by the cut-off time on the due date.
If you believe you were incorrectly charged a late payment fee, you can dispute the charge with the bank. Notify your bank in writing using the billing error notice instructions, which should be on the back of your monthly billing statement. Be sure to use the address specified after "Send Billing Inquiries to:" or similar on the back of the billing statement. This is usually not the same address where you send your payment.
Refer to 12 CFR 1026 "Truth in Lending (Regulation Z)" for more information.
Last Reviewed:April 2021
Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.
FAQs
If the payment due date falls on a weekend or a federal holiday when the bank does not accept or receive mailed payments, then any mailed payment received by the bank before the cut-off time on the next business day would be considered an on-time payment.
Are credit card payments due on holidays? ›
According to the CFPB, if the due date is a day that the card issuer doesn't receive or accept mail, such as a Sunday or a national holiday, they can't consider a mailed payment as late if it was received by 5 p.m. on the next business day. Be aware that card issuers look at the day it was received, not postmarked.
Do credit card payments process on bank holidays? ›
Any credit card or ACH payment that processes over a bank holiday can be delayed up to one business day, as most banks are closed on these dates.
Are credit card payments processed on weekends? ›
Though this depends on the issuer, some payments are processed only on weekdays. That means a payment made over the weekend — or at 4:59 p.m. on a Friday — may take longer to process. Making your credit card payment early in the week will help you avoid a weekend processing delay.
Why is it better to pay for a holiday on a credit card? ›
Using a credit card to pay for a holiday
Subject to the credit limit available, and the interest rates which apply to your account, a credit card could be a flexible and cost-effective way to pay for a holiday. An introductory or promotional rate could offer low or even 0% interest on card purchases.
What if my payment is due on a holiday? ›
If your payment due date falls on a weekend or a federal holiday when the bank does not accept or receive mailed payments, any mailed payments received by the bank before the cut-off time on the following business day will be considered timely.
Do payments get delayed on holidays? ›
The Federal Reserve pauses ACH payments on federal holidays, which delays payments like direct deposits one business day.
Do banks process payments on holidays? ›
Banks do not process payments on bank holidays. However, if a bank holiday happens to coincide with payday or occurs during the payroll processing window, then businesses can choose to run their payroll early to make sure their employees aren't waiting longer than they should to get their paycheck.
Do payments go through on public holidays? ›
Regular payments (i.e. automatic payments) are sent on their due dates even if it falls on Saturdays, Sundays, or public holidays.
Do payments come out on holidays? ›
Banks typically close on Federal Reserve holidays and payment processing is suspended during those times. You may encounter slower payments to or from your account during bank holidays, but there are often ways for you to work around it.
While a payment can take a few days to process, and your balance won't update until that happens, credit card companies are required to credit you for the payment the same day. If that hasn't happened and it's been a day or two since you made the payment, contact your credit card issuer immediately.
What happens if my credit card bill is due on a weekend? ›
If the due date was a day the card company wasn't receiving or accepting mail – generally weekends or a holiday – you have until 5 p.m. on the next business day. A card issuer may also set a reasonable cut-off time for online payments to be considered on time.
What are the days for credit card payment? ›
Your credit card due date is the last date until which you are supposed to clear your bill and it is usually after 15 to 25 days from the statement date. For instance, let us consider that your credit card statement is generated on the 6th of every month and your due date is the 26th of the same month.
Why should you always pay off your credit card in full on time? ›
It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.
Why is it often best to pay off credit card debt? ›
Key takeaways. Carrying a balance on a credit card usually results in paying more for purchases due to interest charges. Credit utilization is an important factor in determining your credit score and is affected by carrying a balance on your credit cards.
Is it good to leave money on your credit card? ›
In general, it's always better to pay your credit card bill in full rather than carrying a balance. There's no meaningful benefit to your credit score to carry a balance of any size. With that in mind, it's suggested to keep your balances below 30% of your overall credit limit.
Do banks take out payments on holidays? ›
Banks do not process payments on bank holidays. However, if a bank holiday happens to coincide with payday or occurs during the payroll processing window, then businesses can choose to run their payroll early to make sure their employees aren't waiting longer than they should to get their paycheck.
Are payments delayed on bank holidays? ›
Banks can't process standing orders, direct debits, and salary payments over the weekend and bank holidays. These types of payments require processing during standard business hours on working days. If scheduled on a weekend or bank holiday, these payments will be delayed until the next business day.
Do payments post on holidays? ›
It is important to note that on Federal Holidays, banks can perform transactions, but due to the Federal Reserve being closed, the transaction most likely won't post to a bank account until the following day.
