Why Chase Charges Late Fees Before the Payment Deadline

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The concept of a payment due date is straightforward—you make a payment before the end of the day it’s due. Back in the days of mailing checks, you had to account for postal delays to ensure your payment arrived on time. However, banks were generally more forgiving, knowing the mail could take days to deliver.

Fast forward to today: electronic payments happen instantly, but banks have become far less lenient. Miss your deadline by even a minute, and you’ll likely face a late fee. Among the banks I’ve dealt with, Chase stands out as one of the most aggressive in charging late fees.

Chase’s Late Fee Frustration

Here’s the kicker: if you pay your Chase bill between 8:00 PM and 11:59 PM ET on the due date, your payment might not show up immediately—it could take one to two days.

If you pay your Chase bill between 8 PM and 11:59 PM ET, the payment might not show up for 1 to 2 days.

Despite paying on time, you’ll likely see:

1. A message claiming you missed the payment.
2. A late fee (and potentially interest charges) added to your account.

While Chase may eventually reverse the late fee, the experience is frustrating. They’re in such a rush to charge penalties that they send late notices before the day is even over. For customers who follow the rules and pay on time, this is a maddening process.

Capital One’s Approach: More Strict, But Also More Fair

By contrast, Capital One enforces a clear-cut rule: payments are due by 8:00 PM ET. If you miss the deadline, you’ll face a late fee, but at least they’re upfront about it. Here’s how it works:

You may be charged a late fee if you haven’t made your minimum payment by 8 p.m. ET on the due date. Your payment will post the same day if you make it online or by text, except:
▪ After 8 p.m. ET, Monday-Friday, it’ll post the next day
▪ After 8 p.m. ET Saturday and all day Sunday, it’ll post the following Monday
▪ On Thanksgiving, Christmas, or New Year’s Day, it’ll post the next business day

It’s not perfect, but it’s fair. If I miss a Capital One payment, I can accept a late fee without feeling blindsided. But with Chase, it’s infuriating to face penalties when I’ve paid on time according to their own guidelines.

Chase, It’s Time to Do Better

Chase, take note. Your current policy is unnecessarily stressful for your customers. You’ve got the tools to make this process more transparent and customer-friendly—so why not use them?

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This post first appeared on Your Mileage May Vary