Credit Card Processing: How Long Does It Take? | LendEDU (2024)

Paying your credit card on time is crucial to avoiding interest charges and late fees. As long as you submit a payment by your due date, it’s considered on time.

But many credit card companies don’t post a submitted payment or pull the money from your bank account immediately. Depending on the situation, it can take one to three business days for your credit card and bank account balances to reflect the transaction.

Understanding your card issuer’s payment policy can help you better manage your card’s available credit and ensure you have the necessary funds to complete the transaction. Here’s what you need to know.

In this guide:

• What happens when you make a credit card payment?
• Credit card payment processing times by issuer
• What can go wrong with credit card payments?
• How to ensure your credit card payments are processed on time
• What happens if I pay my credit card late?

What happens when you make a credit card payment?

Each month, your credit card issuer will send you a statement for the previous month’s transactions. Among other items, the statement will include your balance, minimum payment amount, and due date.

As long as you submit your payment by the cutoff time on your due date, your card issuer should consider it an on-time payment. Here’s what the process looks like:

1. You submit the payment: You can typically submit your payment through your online account or over the phone using your saved bank account information. If it’s a new card, you may need to link your bank account before you can make a payment.
2. The card issuer credits your account: If you make your payment earlier in the day, your card balance and available credit should update on the same day. If you pay later in the day, the card issuer may not credit your account until the following business day.
3. The card issuer clears the transaction: Over one to three business days, the card issuer will communicate with your bank to ensure you have enough funds to cover the payment amount. Once it confirms that, the bank will transfer the money and complete the transaction.

Note that if you pay by mail—options typically include a check or money order—it can take several days longer to account for the time it takes for the card issuer to receive your payment.

Credit card payment processing times by issuer

Several general guidelines about the credit card payment experience apply across all credit card companies, but each card issuer has a unique policy.

So how long does it take for a credit card payment to process? Here are examples from many of the top credit card issuers, giving you a better idea of what to expect. Click on the credit card company’s name in the table to read more about its policy.

American Express

When you pay an American Express credit card online, it may take between 24 and 36 hours for it to post to your account. However, the payment might not clear the delivering bank account for four to five business days.

If you’re making a last-minute payment on your due date, be sure to submit it by 8 p.m. Eastern.

Bank of America (BoA)

If you pay your Bank of America credit card by 11:59 p.m. Eastern, BoA will credit it the same day. However, it may take up to two business days to update your balance.

The cutoff time for mailed checks and money orders is 5 p.m. Eastern.

Barclays

All payments made to Barclays credit cards by 11:59 p.m. Eastern are counted for that date. However, it can take one or two business days for the payment to reflect in your available credit and to post to your account, depending on when you paid. Payments aren’t posted and available credit isn’t updated on Thanksgiving, Christmas, or New Year’s Day.

Capital One

Online Capital One credit card payments made before 8 p.m. Eastern Monday through Saturday are posted to an account on the same day. If you make a payment after the cutoff time, it’ll be counted the next day.

If you make a payment on a Sunday or on Thanksgiving, Christmas or New Year’s Day, it won’t be credited for that day unless it’s your due date.

Capital One must receive mail payments by 5 p.m. local time at the processing center to count for that date.

Chase

Payments on Chase credit cards received by 11:59 p.m. Eastern are credited to your account the same day. Your payment will post to your account the same day if you pay before 8 p.m. Eastern time—but payments made on Saturday will post Sunday evening.

If you submit your payment between 8 p.m. and 11:59 p.m., the payment will generally post the next day. If you pay on a Friday, it’ll post Sunday evening.

Note that if you pay after 8 p.m. but still by 11:59 p.m. on your due date, a late fee may show up on your account the following day. But don’t worry: You’re still on time, and Chase will reverse the fee as soon as the payment posts.

Citi

Online payments on Citi credit cards received by 12 midnight Eastern are credited to the account the same day. However, if it’s your statement date or you mail a check or money order, the cutoff time is 5 p.m. Eastern.

Regardless of when you pay, it can take one to two days for Citi to update account balances. Payments sent by mail can take five to seven days to process.

Discover

The cutoff time for same-day payments on a Discover credit card is 12 midnight Eastern, unless it’s your statement date (the day the company generates your statement) or you’ve mailed your payment. Then, the deadline is 5 p.m. Eastern.

U.S. Bank

If you have a U.S. Bank credit card, the cutoff time to have a payment credited for the same day is 6 p.m. local time if you’re paying from a U.S. Bank checking or savings account on a business day. If it’s a non-business day, the deadline is 8 p.m. Central. If you’re paying from an account with a different bank, the cutoff time is 7 p.m. Central.

For U.S. Bank checking and savings customers, local time is based on where you opened the account. Depending on when you make your payment, your available credit will be updated within one or two business days.

Wells Fargo

Unlike other major card issuers, Wells Fargo doesn’t disclose a standard cutoff time for online payments. Instead, it says it will provide one to you when you make your payment.

If you pay by mail, the payment must be processed by 5 p.m. on the date it’s received to count for that day. Your account should be updated by the next day.

What can go wrong with credit card payments?

If you’ve made a payment on your credit card and are wondering why it’s taking so long or why the payment is pending, several issues could be going on:

• You missed the cutoff time: If you didn’t submit your payment by your card issuer’s cutoff time, it may take an extra day to be credited to your account.
• You submitted a payment on a weekend or holiday: Some card issuers may delay posting payments submitted on weekends and certain holidays.
• You don’t have sufficient funds: Credit card issuers may not take payment from your bank account if it overdraws the balance.
• You mailed the payment: If you prefer to send a check or money order, it can take several days for your card issuer to receive it. If it’s been longer than that, it’s possible the letter was lost in transit or you didn’t follow the card issuer’s instructions for mailed payments.

In rare cases, it’s also possible for a system glitch to prevent you from submitting your payment or stop the card issuer from verifying the funds are available to cover it.

How to ensure your credit card payments are processed on time

Not paying your credit card on time can be costly, so it’s important to have a strategy in place to ensure you always pay by your due date. Steps you can take include:

• Set up automatic payments: You may be able to set up autopay for the card’s minimum balance due, the full statement balance, or a fixed amount. Just be sure you have a buffer in your checking account, so you don’t end up with a returned payment.
• Request alerts: If you prefer to pay your bills manually, set up alerts on your account to get a monthly reminder when your bill is due. You can also set up your own reminder system.
• Know your card issuer’s policy: Some card issuers count payments the same day up until around midnight, others have earlier cutoff times. Review your cardholder agreement or monthly statement to ensure you know your deadlines.
• Pay online or by phone: The best way to ensure speedy processing is to pay online or over the phone. If you send payment in the mail, you open yourself up to potential issues outside your control.

When you open a new credit card account, it’s important to link your bank account before making a payment. That way, you don’t have to worry about issues with the verification process.

What happens if I pay my credit card late?

If you don’t pay at least the minimum amount due by your monthly due date, the following can happen:

• Late fee: Your card issuer may assess a late fee, which can be as much as $41. Some card issuers may be willing to waive your first late fee, and a handful of credit cards don’t charge a late fee.
• Interest charges: Credit cards typically offer a grace period on purchases, which means you don’t have to pay interest on your spending as long as you pay your bill on time and in full every month. If you miss a payment, the card issuer will assess interest on your balance.
• Grace period: If you miss your payment or don’t pay the balance in full, you may also lose your grace period. In other words, interest may start accruing on all new purchases immediately until you pay off your balance in full.
• Credit score damage: If your payment remains late 30 days after your due date, the card issuer may report it to the credit bureaus. Because your payment history is the most important factor in your credit score, even one missed payment can have a significant negative impact on your score.
• Penalty APR: If you miss a payment by 60 days or more, your card issuer may assess a penalty APR, which is a higher interest rate that replaces your card’s regular APR for a minimum of six months.

Also, keep in mind that if you don’t have enough funds in your bank account to cover the payment, you may be charged a returned payment fee.