Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts
Back to General Questions/Other

Penfed Platinum Cash Rewards Card

Tuesday, March 5, 2013 - 8:03 AMPentagon Federal Credit Union
Does anyone have one (PFCC) that banks at another institution and uses that banks billpay features to pay their monthly credit card bill. An in-depth explanation of the process would be appreciated. I just got mine and in reading the disclosures I find that I can't pay using billpay from another bank. My desire is to pay my bill directly to PenFed Credit without having to deposit to a share account and transfer or having to establish a PenFed checking account in order to use their bill pay system.

Side Note: They seem to be able to accept billpay from another bank but claim it could take up to 5 days to post though my bank can have it to them in 2. Not sure about all this either. Any help here would be appreciated. Thanks
3
klinkklink85 posts since
Dec 8, 2012
Rep Points: 228
1. Tuesday, March 5, 2013 - 10:03 AM
Well I got the answer to my own question after calling Pen Fed. Was reluctant to do it for what reason I don't know. Anyway if anyone still responds, thanks. Always looking for experiences to verify what Pen Fed told me.
3
klinkklink85 posts since
Dec 8, 2012
Rep Points: 228
2. Tuesday, March 5, 2013 - 10:56 AM
Klink, I have found that each institution does the Bill Pay setup differently and treats each payee differently, so unfortunately there is no consistent approach.  Some institutions send the payment electronically to one payee, but send a check to others.   

Here is what I suggest: 

1.  Call PenFed and tell them you are setting them up for BillPay with your institution.  Ask for the full address where payments should be sent, as well as the phone number the institution can call if there are questions about the payment.  The address is most likely the "remit to" address on your statement, but double check.  The phone number info is sometimes optional in the set up process, but you might as well have the info handy.  Many times the phone number is the same as the Customer Service number. 

2.  Go to the institution you wish to BillPay from and set up PenFed as a payee.  "Pentagon FCU credit cards" was already set up as a payee at the institution I use sometimes, so all I had to do was provide my credit card account number, and I was able to send a payment immediately.   Had it not already been established, I would have set it up using the information from step 1 and my credit card number. 

3.  Once you have completed the setup, make a small payment (example:  $1.00) to test the setup.  You'll want to note when you requested it, when it is scheduled to be delivered, and then note when it was actually posted to your account at PenFed.  That will give you some idea of how long the process takes so you can plan for future payments accordingly.

The “it could take up to 5 days to post” is because PenFed has to process the payment internally once your bank hands it off to them.  Fortunately PenFed posts the payment to your account as soon as it is received.

When you set up the BillPay, you will be given a confirmation number for the transaction as well as an expected date when the payment will be delivered to PenFed.  Be aware that the actual posting date may lag by a couple of days, so you should take that into account when you are scheduling the BillPay. 

Here is a second possibility:

If  you wish to use the BillPay method simply so that you have control over when the payment is made, another option is for you to initiate a transfer from your checking account directly to the PenFed credit card.   Once you log in, under Accounts, look for the “Transfer Funds” box on the right hand side.  Under the green “Place Transfer”, you will see “Transfer options”.  Click on the “+” sign to open, then on “Add non-PenFed accounts”.  At the next window, enter a nickname for your acct (“My acct at BigBank”), the account type (checking/money market or savings), the account number, and the routing number for your institution.  Click “verify”.  At the next window, select “set up for incoming transfers only”, then click “submit”.  

When you want to make a payment, go to the “Transfer Funds” box,  open the drop down box and you should be able to select the institution you just set up as the “from account”.  Then select the  credit card account you wish to pay as the “to account”.  Enter the amount, click on “place transfer” and follow the prompts.     You may wish to note the confirmation number and details for your records.

As a point of reference, I used this method to pay my PenFed bill for the cycle which closed 2/18.  I scheduled the payment on Friday 2/15 to post that day.   The statement showed that PenFed indeed posted the payment to my account on 2/15,  although it did not clear my bank until Wednesday 2/20. 

Hope that helps.
7
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
3. Tuesday, March 5, 2013 - 10:58 AM
Klink, I did not see that your second post until after I had posted my reply.  Does it agree with what PenFed told you?
3
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
4. Tuesday, March 5, 2013 - 2:41 PM
Pearl

As I stated, I was reading their discloseures booklet and it indicated that for 6 mos. I would be required to mail my payment, or I could billpay from a financial institution without a clear indication from Pen Fed on when it would be posted. I find that antiquated in these times and a surefire way of an unknowing acct holder to rack up some fees for whatever. I did call them and was assured that folks use other banks bill pay systems to pay their monthly bills and that I could rest easy, use my hub bank billpay and have it post usually within 48 hrs. So all is well. I had already set up the billpay from my hub bank but then got to reading the disclosure stuff, hence the questions.

Thanks for your in depth response and as always I do learn more from this site and the folks that post to it.
2
klinkklink85 posts since
Dec 8, 2012
Rep Points: 228
5. Wednesday, March 6, 2013 - 8:04 PM
klink,

Doesn't your Penfed credit card have an autopay function under which the card will automatically deduct the amount of your monthly statement on the statement's due date from any bank or credit union you designate? Every credit card I have has such a function and that's how I pay all my credit card bills.
1
dunkerdunker135 posts since
Jun 11, 2010
Rep Points: 403
6. Wednesday, March 6, 2013 - 8:19 PM
I have a Pen Fed card.  They deduct the card each month from my account. I have done this for many years. If I remember you can choose minimum payment, payment in full, or a set amount.  I believe that you are protected more if you have the instituion that is owed the money request the money on the due date.  If they change the date the payment is due and you have set up bill pay on a particular date you could have a late fee. This happened to someone I know with one of the big banks and they raised her interest rate. She had her account set up to pay a particular date each month and they changed the date and she did not notice it. 
1
AllyAlly773 posts since
Jan 16, 2010
Rep Points: 2,254
7. Thursday, March 7, 2013 - 10:28 AM
I use Bank of America bill pay for this card.  It has not been a problem at all.  I think I have been doing it for 2+ years.

When I click on the PENFED link, here is what BAC says about the address used:

Most payments to this company are sent electronically. But if we need to send a payment through the mail, we'll send it to the address that the company has designated, so that they will receive the payment in the most efficient manner. This address may be different from the address you see in your bill.

1
Anon456Anon45625 posts since
Oct 30, 2011
Rep Points: 64
8. Thursday, March 7, 2013 - 1:22 PM
Thanks for all the replies. Issue is solved.

I wish I had worded the initial post differently in that I was wondering if anyone had the card and was paying their monthly bill from an outside (PenFed) bank using billpay. To be even more specific, you got your PenFed card, you have been a member less than 6 mos. and your first statement payment was from another bank using that banks billpay.

Just an issue with the disclosure statement I got with my new card.
1
klinkklink85 posts since
Dec 8, 2012
Rep Points: 228
9. Wednesday, April 3, 2013 - 12:30 AM
The Boa Better Balance Rewards card incentivizes consumers for paying their regular bills on time and for throwing in a little more over their minimum charge.
1
drewblakedrewblake2 posts since
Apr 3, 2013
Rep Points: 2
10. Thursday, June 13, 2013 - 12:05 AM
Ive heard this before that Bank of America has released a new type of rewards card. Rather than rewarding consumers for spending -- which only boosts the amount of their debt -- it pays them when they pay their bill once it is due and they will pay just a little more than their minimum monthly requirement when doing this. In that way, it is incentivizing individuals to handle their loan debts more sensibly. 
2
justinlakejustinlake1 posts since
Jun 13, 2013
Rep Points: 2
Reply