Holds on Credit Card Payments of up to 10 Days, Really?!

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Ryan V.
Contributor

Have been a member for 30+ years and recently began to notice that when making payments to my USAA Visa Credit Card it was taking as many as 7 days for my payment to post even though the funds for the payment had been drawn from my checking account via ACH a week earlier.  I called USAA yesterday and was told that they have been doing this to all USAA credit card accounts for sometime now and that it 'rolls' from account to account.  Also found out they have been doing this to my account since September of 2016.  They is no earthly reason for them to be doing this as we have never had a payment rejected by the bank in 30 years!  I was told there was no way for them to remove this from hapening again. The representative told me the hold was placed on the account probably because we make multiple payment to pay down our card throughout the month.  My wife gets paid every two weeks and I get paid on the 15th and 30th of each month.  I make payments to the card 4-5 times a month to pay it down or pay it off.  This makes no sense to me...Only that USAA is 'floating' my payments for 7-10 days at a time now and not only receiving the interest from sitting on the funds they took from my checking account, but also charging me interest for that same 7-10 day period because they have not applied it to my account.  Very disheartend by USAA with respect to this as well as how they have handled other issues including our auto insuarance and their claims process.  Will be cutting the cord after 30+ years very soon!

41 REPLIES

Thanks for posting this today Ryan V. as your membership experience is very important to us.  We are grateful for your loyalty in the more than 30 years you've been associated with USAA.  I am sharing your concerns with a business colleague where we will review and reach out to you.  We would never want you to consider leaving us in regards to these events brought up in this post.  Thank you for your patience as we look into this further.  Sincerely  -  Justin

This is happening to me too.  It is absurd.  They have a ton of my money just "on hold" and floating in cyberspace for a week and leave me with hardly and credit available on my card.  Very weak customer service. 

ps. And, this was done via direct deposit too.  Sick and tired of this.

Kirk, I understand your concern about credit card payment holds. Please understand when initiating a payment from an external account to your USAA credit card account, the funds will not be transferred directly to our financial institution from the other. The initiating request will be sent to the Federal Reserve then transmitted to us for processing. A hold is placed up to seven days to verify there is proper funding from the initiating bank. - Ben

 

Also even if they are electonic payments which clear on the other side they are placing longer and longer holds on available credit with larger payments 4k - 10K I mean we're not talking 20,30,or 50 grand here - which is something new, they used to release the available credit after no more than 5 business days to the best of my knowledge but this tieing money up is something that tends to make me want to take my business elsewhere, I can see 5 days which honestly is still lame, even the big banks are starting to make available credit immediately upon shedulted payments.

LT-USA - I know payment holds can be frustrating. Please know when initiating a payment from an external account to your USAA credit card account, the funds will not be transferred directly to our financial institution from the other. The initiating request will be sent to the Federal Reserve then transmitted to us for processing. A hold is placed up to seven days to verify there is proper funding from the initiating bank. This protects both you and USAA. - Ben

You're not the only person experiencing this unfortunately. I googled this to see if I was being singled out and it just seems like an incredibly poor policy decision on USAAs part. I pay my card off in full every month, and I noticed that my payments were posting to my checking account, but the credit card would not show that the balance is clear until 5-10 days later. Basically unable to use that card for 1/3 of the month, ridiculous. I will be transitioning to other credit cards that I currently use instead of USAA to mitigate this annoyance. Bye!

I'm sorry to hear of your disappointment, @RyanZAZ. According to the credit card terms and agreement, USAA can hold payments to ensure collectability. I apologize if it does cause an inconvenience. A way to help decrease your hold times, would be to pay from an internal USAA account. Please let us know if we can help with anything else. ~ Samantha

I'm not a banking expert by any means, but trying to strong arm people into banking with you by messing with their credit card payments doesn't seem like a very solid business strategy... What I gathered from this thread is that more people are leaving than opening checking accounts so they can get their payments on their credit cards properly. No other credit card company does this, period. It's a sad excuse, and one that's going to cost USAA money.