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Christmas and Direct Debits
Got this from MSE, hopefully if it's going to happen you can be prepared.
What's the worry? Payments delayed till the next working day may lead to late payment issues. Alternatively payments made too early may leave you without enough cash, causing bank charges. After talking to the official payments body APACS, here's a rundown of how it usually works.
WARNING. Banks may take direct debits EARLY this Christmas
As Christmas and Boxing Day hit on Thur & Fri this year there are four non-working days in a row. This has a confusing impact on direct debits and standing orders scheduled then.
What's the worry? Payments delayed till the next working day may lead to late payment issues. Alternatively payments made too early may leave you without enough cash, causing bank charges. After talking to the official payments body APACS, here's a rundown of how it usually works.
- Standing Orders. These are regular payments you've set up via your bank account. They'll be made the first working day AFTER.
- Cheques. Cheque clearing only operates working weekdays, so pay it in before the bank hols and the clearing timescale is longer (see ChequeChecker for timings).
- Direct Debits for Credit Card Payments. The money's taken the last working day BEFORE the break to prevent late payment fines.
- Other Direct Debits. The money's taken the first working day AFTER.
It's worth checking what payments are due, and if you're short of funds see if you can move money to cover it or change the payment date. For more on the different types of payments see the Direct Debit Audit guide and discuss Christmas payment dates.
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