Disney Visa 0% Financing Question

[DisneyWishes14]

Mods - please forgive me if this is the wrong forum to post this on. I wasn't sure where to ask this.

I have a question regarding the Disney Visa 0% vacation package financing.

I've had a Disney Visa card for years. I always pay off my balance every month, but this past year we took a Disney cruise and had a fairly large balance that qualified for the 0% financing, so, until that was paid down, I was subtracting that qualifying amount from my monthly balance and paid the difference. No issues. This cruise was back in March and is now paid off.

Two months ago, my balance payment posted one day late (though I had scheduled it earlier), so there was a finance charge on my account. I called Chase and they took the charge off. While I was on the phone, I asked the rep to please explain to me how exactly I should calculate my payment each month if I still have a balance qualifying for 0% financing as I had charged our August WDW package on my card. He told me to take the statement balance, subtract the qualifying 0% balance and then add back the minimum payment due. He then did the calculation for me and told me exactly what I needed to pay. I got off the phone and paid what he had quoted me immediately so nothing would post late this month.

Lo and behold, today I open my new statement balance and I have a $90 finance charge on my account though I had paid exactly what the rep had told me. I called Chase to ask why it was on there. The rep I spoke with today told me that unless I pay the statement balance IN FULL (including the balance that qualified for 0%), I would be slapped with finance charges for ALL of my purchases in the prior month, except the promo purchase. So, I literally paid everything off except the WDW package and I was charged interest on EVERYTHING else. Did this change recently?! I was shocked. I see zero advantage to this. You literally HAVE to pay that Disney package off or you will be slapped with interest charges for everything else. What's the point? The only way to make this advantageous, I suppose, is if you use the card only for Disney packages and nothing else?

I'm just wondering what other people are experiencing with this promo on their cards. Either something changed recently or I've completely misinterpreted this whole promo.

 

[nkereina]

I'm not quite following.... you got charged for interest on everything else meaning what? Your purchases that are not part of the Disney package? I would fully expect to have 0% interest on the sum total of my Disney package, but have to pay interest for anything else the card is used for if not paid off by the time the billing cycle closes.

If you don't get clarity on this board, the Budget Board has many people familiar with the Disney Visa card.

 

[WIll C]

Only use this card for Disney purchases I guess. Use another card, one that has better return (points or cash back) for your other, day to day purchases. Something like a Sapphire or Freedom card from Chase or some of the other cash back with up to 5% for certain spends. The Disney card is only decent for Disney purchases I'm finding. Their reasoning seems flawed or just bad. I pay my balance off completely for the period to avoid charges and I'm only using it for the 2% rewards from Disney and the discount once we get there on some items. Beyond that, I use something else.

 

[Moneypenny]

I had a somewhat similar incident last year. We pay all our credit cards off each month, but I booked a Disney Package on my Chase Visa to take advantage of the 0% financing. I'd done it once before and it worked exactly the way I thought it should the first time. I never use the card for anything else, but had happened to also accidentally charge something else to it that month. The bill came and I paid only the amount of the other charge, which was greater than the minimum payment due. The next month I had a finance charge. The statement even showed that the full amount of the package was part of the promo for 0%. I usually have great luck with Chase customer service, but when I messaged them through the online site, I got a "too bad, here are the terms" response. I didn't understand how those terms meant I'd have to pay off any of that package cost that month. I called in and had to go through 3 different levels of reps before I got one who would waive the finance charge. I was told that when I paid a partial amount of the total balance on the card, the amount is prorated to go towards all charges, so they had considered that I'd partially paid on the package. That meant some of the other charge was considered unpaid and I incurred a finance charge. For example, if the package charge was $3000 and the the other charge was $250 and I paid $250, they would apply only $200 to the other charge and $50 to the package. That incurs the finance charges. I think it's really deceptive and means that you're right - if you don't just pay the whole package off right away there is no way to avoid the finance charge. I was able to cancel that package booking to get it refunded to my Disney Visa and rebooked on a different card that got me 3% back on travel. I'll never book a package on my Disney Visa again.

 

[lanejudy]

I believe it goes back to the the prior payment that posted late. There always ends up being 2 months of finance charges when a payment posts late -- finance charges from that late month and a little more the next month (until the date paid). When the rep removed the first finance charge it still didn't change the payment date; therefore when the next period rolled around, the computer automatically added interest because in their computer system you had carried a balance into that period as the prior payment still shows as posting on the late date. I'm probably not explaining that clearly but the credit card company should be able to explain it better. It all relates back to that original late payment, even though you had the first set of finance charges erased.

Now, you state that payment posted late even though you had scheduled it earlier -- if you feel the credit company was at fault for the late posting then they should erase ALL finance charges related to it, which includes the newest amount. You will likely need to fight them over it, unfortunately, as the front-line customer service reps aren't likely to be able to help at this point.

Good luck!

 

[DisneyWishes14]

I'm not quite following.... you got charged for interest on everything else meaning what? Your purchases that are not part of the Disney package? I would fully expect to have 0% interest on the sum total of my Disney package, but have to pay interest for anything else the card is used for if not paid off by the time the billing cycle closes.

If you don't get clarity on this board, the Budget Board has many people familiar with the Disney Visa card.

I'm sorry if I wasn't clear. When I spoke to the rep last week, he said to pay the statement balance minus the Disney package balance under the 0% promo rate plus the minimum payment due, which I did. Basically I paid off everything except about $900 from the Disney package which qualified for the 0%. Because I didn't pay that $900, which qualified for the 0%, I was charged interest on all other purchases. Especially since I had gone over this with a rep and he is the one who calculated what payment needed to be made to avoid an interest charge, I was not expecting to have one on my statement.

I had a somewhat similar incident last year. We pay all our credit cards off each month, but I booked a Disney Package on my Chase Visa to take advantage of the 0% financing. I'd done it once before and it worked exactly the way I thought it should the first time. I never use the card for anything else, but had happened to also accidentally charge something else to it that month. The bill came and I paid only the amount of the other charge, which was greater than the minimum payment due. The next month I had a finance charge. The statement even showed that the full amount of the package was part of the promo for 0%. I usually have great luck with Chase customer service, but when I messaged them through the online site, I got a "too bad, here are the terms" response. I didn't understand how those terms meant I'd have to pay off any of that package cost that month. I called in and had to go through 3 different levels of reps before I got one who would waive the finance charge. I was told that when I paid a partial amount of the total balance on the card, the amount is prorated to go towards all charges, so they had considered that I'd partially paid on the package. That meant some of the other charge was considered unpaid and I incurred a finance charge. For example, if the package charge was $3000 and the the other charge was $250 and I paid $250, they would apply only $200 to the other charge and $50 to the package. That incurs the finance charges. I think it's really deceptive and means that you're right - if you don't just pay the whole package off right away there is no way to avoid the finance charge. I was able to cancel that package booking to get it refunded to my Disney Visa and rebooked on a different card that got me 3% back on travel. I'll never book a package on my Disney Visa again.

Yup, that's what happened. What card do you have that gives you 3% back?! I have a Chase Sapphire - I may just stick with that. Or, only use the Disney Visa exclusively for Disney trips which kind of defeats the purpose of racking up Disney rewards points.

I believe it goes back to the the prior payment that posted late. There always ends up being 2 months of finance charges when a payment posts late -- finance charges from that late month and a little more the next month (until the date paid). When the rep removed the first finance charge it still didn't change the payment date; therefore when the next period rolled around, the computer automatically added interest because in their computer system you had carried a balance into that period as the prior payment still shows as posting on the late date. I'm probably not explaining that clearly but the credit card company should be able to explain it better. It all relates back to that original late payment, even though you had the first set of finance charges erased.

Now, you state that payment posted late even though you had scheduled it earlier -- if you feel the credit company was at fault for the late posting then they should erase ALL finance charges related to it, which includes the newest amount. You will likely need to fight them over it, unfortunately, as the front-line customer service reps aren't likely to be able to help at this point.

Good luck!

Hmm, interesting. Maybe that was it? Oh, I raised holy you-know-what and mentioned the call I had had with the rep last week who calculated my payment. I reminded them that call had been recorded and I'm sure they have a record of it. The finance charge was erased.

 

[AngiTN]

I do know that I just got off the phone with a different Chase issue and they have a new payment processing system, and it's rotten!
I'm beyond po'd with them at this time and will likely cancel my Disney Chase card due to it.
And this new system could be part all the issues with the payment processing y'all are seeing. I'm not trusting anything with them right now.

 

[Moneypenny]

Yup, that's what happened. What card do you have that gives you 3% back?! I have a Chase Sapphire - I may just stick with that. Or, only use the Disney Visa exclusively for Disney trips which kind of defeats the purpose of racking up Disney rewards points.

My Costco Citi Visa gives 3% back on travel.

 

[AngiTN]

My Costco Citi Visa gives 3% back on travel.

If only Citi Corp was much better than Chase Corp.....

 

[DazzleT]

I started reading this and knew immediately what the issue is. This comes up a lot with balance transfers as well- you basically have to make a card dedicated to the balance transfer or else you get finance charges. It is a tricky thing that credit cards do. Not particularly honest, but not unique to chase.

 

[DisneyWishes14]

I do know that I just got off the phone with a different Chase issue and they have a new payment processing system, and it's rotten!
I'm beyond po'd with them at this time and will likely cancel my Disney Chase card due to it.
And this new system could be part all the issues with the payment processing y'all are seeing. I'm not trusting anything with them right now.

Hmm. It really could be. I have never had an issue with my Chase Disney Visa before and I've had this card for years. Now, two months in a row, I've had issues and have gotten different info from two different reps. It's odd. I researched this question on the DIS prior to posting mine and there is an old thread from 2010 that addresses this same question and many people mention the issue, but also state a new law was being put into place so cc companies couldn't do this anymore. Maybe the law was changed again? I don't know. All I know is I will pay off in full from now on and may perhaps cancel the card as well.

If you look at post #8 on this old thread from 8 years ago, you'll see a poster who had the same issue I had but Chase then told her that the charge was an error: https://www.disboards.com/threads/disney-visa-0-financing-question.2371175/

AngiTN, can you explain their new payment processing system?

 

[newdisneygirl08]

I don't want to jinx myself, but I didn't pay all of my deposit on my card the first month, have been using for other purchases and no finance charges yet. I would guess it is related to the one late payment. Will update here if my experience changes!

 

[krum]

https://www.thebalance.com/credit-card-payment-allocation-explained-960084

I had used my Disney Chase for zero percent deals in the past, but I would always pay off the entire balance each month except for the 0% and it was fine. Haven't done that in years though as I've learned it's just usually not worth it to try to game credit card interest deals because you only have to lose once to completely offset any kind of win.

 

[DisneyWishes14]

I don't want to jinx myself, but I didn't pay all of my deposit on my card the first month, have been using for other purchases and no finance charges yet. I would guess it is related to the one late payment. Will update here if my experience changes!

Hmm. After reading some of these posts, I'm beginning to think it may have been related to that one late payment - which really wasn't late, it just posted late, argh!

https://www.thebalance.com/credit-card-payment-allocation-explained-960084

I had used my Disney Chase for zero percent deals in the past, but I would always pay off the entire balance each month except for the 0% and it was fine. Haven't done that in years though as I've learned it's just usually not worth it to try to game credit card interest deals because you only have to lose once to completely offset any kind of win.

This is a great article, thank you! It actually reiterates what the first rep told me to do - take the statement balance, add the minimum payment due and then subtract what was in the 0% promo. The payment, then, would have covered the high interest rate purchases and the no-interest rate purchase. Ugh. So complicated! I think I will call one more time before I pay off the statement balance I received today to see if I can really get a straight answer on this. Thanks everyone for chiming in!

 

[Daniela Rose]

Thank you for posting this. I had no idea that’s how it worked (or changes to work that way). Looks like I’ll need a new disney card that is only for my Disney trip packages.

 

[NWOhiogal]

The Capital One Savor card offers 4% cash back on entertainment and restaurant purchases. I have one, and that's what I'm going to use for everything.

 

[DisneyWishes14]

The Capital One Savor card offers 4% cash back on entertainment and restaurant purchases. I have one, and that's what I'm going to use for everything.

Thanks for the tip!

 

[NWOhiogal]

Thanks for the tip!

Sure! There's a $95 annual fee, but with 4% cash back, you could probably earn that back in a year going to Disney! Here's a link to a review of the card:

https://www.nerdwallet.com/reviews/credit-cards/capital-one-savor

 

[AngiTN]

AngiTN, can you explain their new payment processing system?

I wish I could.
It's the most bizarre-o world thing I've ever experienced.
I have a rather small limit on my card and use it on our trips, for the rewards. To keep from going over the limit I have to make frequent payments during our trips to clear enough for each charge to go through.
Well, I've done this for years with no problem. Last week, not so lucky.
I got home, looked at my account, I see a balance of $0 and a credit limit of $0. No pending charges.
Which obviously makes ZERO sense, right? So I call. The rep I get at first agrees, that makes no sense. He starts to look at the payments and says, "I see what's happened, the payments you made last week are being held. I'll see if I can release them" He tries, and can release 1 of them. In the meantime, I go on my bank account and look, and confirm what I knew, every payment has cleared through my account, most by several days. Rep comes back and says he can't clear the rest he has to escalate to a supervisor.
So on to a supervisor who says she can't release any of the payments without speaking to my bank, with me on a conference call, to have the bank verbally tell her the payments have posted. Bank gets on the line and they can't access my account without going through a set of security questions with me and they won't do that with a 3rd party on the phone (especially one that is recording the call and may or may not be secure) unless I allow them to do so, and they highly recommend I do not allow this. The bank asks if I can go through the security questions with the rep off the line and then call the Chase rep back and the Chase rep said no, that they must initiate the phone call, they can not accept a call back. The bank rep asks if Chase can accept any other type of verification that they charges have cleared through my bank account and Chase said no, they will only accept a verbal verification, nothing else. When it was said that I wouldn't allow the Chase rep to remain on the line to hear the security process for my bank access the Chase rep said because I refuse to allow verbal verification they would note that and have to terminate the phone call. The bank rep tried to find another method to get verbal verification for Chase and while we were on hold I asked the Chase rep why this had come up now, after so many years and she told me that all she knew was they had a new payment processing system and this was one of the new procedures when you made too many payments in one cycle. So I'm now penalized for paying them too much. Which is utterly and completely ridiculous. I paid them so I could use the card and now I'm penalized for it by their taking the money and not giving me credit for the payments for 2 weeks.
I'm of the opinion that no rewards are worth this and Chase can keep their freaking card. I've got others that don't do that to me. The other issue is what to do with my Southwest card since I do use those reward points a whole lot more

 

[Huff]

I'm assuming that Disney is crediting any payment you make towards the Disney 0% balances before any payment is credited towards non 0% purchases. This results in interest charges. Unless Disney has a method for stating which balance your payment is to be credited I don't see a way to avoid this issue.