Need help with automatic loan payments...

[UGAFan0829]

We currently have our monthly DVC payment debited automatically from our checking account. However, we just opened a checking account with Chase and got the Disney Rewards Card. Does anyone know if I would be able to set up automatic payments using that card instead of the checking account number so that we could earn more rewards? Thanks!

 

[drusba]

No, they do not do automatic payment through a credit card, only from a bank account.

 

[UGAFan0829]

I just found this on the DVC Member site, so now I'm really confused...

Why can't I pay my loan online?
If you do not see Pay This Amount links to make a payment on your loan, you may have one or more issues with your account that prevent you from making a payment online:

If you pay recurring Credit Card or Direct Debit payments, you may not pay Monthly Payments on your loan online. You may, however, make a payment toward your loan Principal, or pay off the entirety of your loan by selecting the corresponding links.

From what this says, you are able to make recurring payments with a credit card. But maybe I'm just not understanding the difference in a recurring payment and a direct debit.

 

[drusba]

You can go on-line and make payments toward toward your loan principle via credit card but it is not an automatic payment method that you can set up with Disney. You can also go on-line and make payments toward dues via credit card even when you have automatic withdrawal from your account. I have not heard of them allowing loan payments to be automatically paid via credit card.

 

[Nikisha421]

I asked this same question a few weeks ago and the called MS myself since I opened the Chase Rewards Checking account as well...what you can do is call in and make the payment a few days in advance and then ask them not to take that particular months payments through automatic debit...It obviously requires you to call every single month....and to make sure that you call early enough so that the automatic debit can be stopped for the month...I did it one month ago...I just said forget it...I just use it to make extra monthly payments instead of calling and having it stopped....

 

[yitbos96bb]

You can go on-line and make payments toward toward your loan principle via credit card but it is not an automatic payment method that you can set up with Disney. You can also go on-line and make payments toward dues via credit card even when you have automatic withdrawal from your account. I have not heard of them allowing loan payments to be automatically paid via credit card.

Which makes no sense. I mean if they didn't allow Debit or Credit cards at all, then I could see... but since they allow them then there is no logical reason to not allow it.

 

[jlewisinsyr]

Which makes no sense. I mean if they didn't allow Debit or Credit cards at all, then I could see... but since they allow them then there is no logical reason to not allow it.

Except the cost for processing a credit card transaction. The inconvenience discourages many people from doing this, and if you choose not to have automatic deductions, your rate is higher, allowing Disney to offset the credit card processing fees. If you opened the flood gates and allowed people to use automatic recurring charges to a credit card (or debit card) this would impact Disney's financials as they would have to pay the processing fees on the transaction to Visa/Mastercard/AMEX/Discover, etc.

 

[pinner33]

that's weird i bought last month at the grand cali and my monthly payments come go on my visa so i get my moneyback points maybe it's because i'm from out of country as i would have just as well taken it out of my savings account but you have to have a US account so i was told i had to us a credit card and if they want to give me 1% back to boot so be it lol.

 

[disneynutz]

If you manually pay your loan instead of using direct debit, you will be charged a higher interest rate.

Bill

 

[Crystal_27]

If you opt to pay your loan using a credit card, they will charge you an additional 1% interest rate more than what you are paying now. So, basically, any savings you would net from using the rewards card would be eaten up by the higher interest (it would be nice to be able to earn Disney rewards on DVC loan payments, though).

 

[ty_n_cy]

that's weird i bought last month at the grand cali and my monthly payments come go on my visa so i get my moneyback points maybe it's because i'm from out of country as i would have just as well taken it out of my savings account but you have to have a US account so i was told i had to us a credit card and if they want to give me 1% back to boot so be it lol.

Yes, it's because you are from outside the USA. We asked the same question when we bought into DVC a few months ago. The payments are directly debited from our checking account and are unable to be taken from a debit or credit card on a monthly basis.

As others have said... the difference in interest rates (it's 0.5% not 1.0%) offsets any rewards you may earn. I think currently the rate is 1 point for every $200 which works out to exactly the 0.5% difference anyway.

We've had the Disney Rewards checking account since December of last year and we've accumulated only 94 points including the 25 points they gave us upon opening the account. It takes a lot to get a little.

CY

 

[Crystal_27]

As others have said... the difference in interest rates (it's 0.5% not 1.0%) offsets any rewards you may earn. I think currently the rate is 1 point for every $200 which works out to exactly the 0.5% difference anyway.

That's very interesting - - when we bought in a year ago, we were specifically told it was 1% to have the payments taken out from the credit card. If DVC has reduced the "penalty" to 0.5%, it may actually make sense now. And, you actually earn 1 point for every $100 you spend, not every $200 (at least on the credit card side). Hmmmmm...

 

[ty_n_cy]

That's very interesting - - when we bought in a year ago, we were specifically told it was 1% to have the payments taken out from the credit card. If DVC has reduced the "penalty" to 0.5%, it may actually make sense now. And, you actually earn 1 point for every $100 you spend, not every $200 (at least on the credit card side). Hmmmmm...

I'm not sure about the credit card... but the debit card is definitely 1 point for every $200. We'll have to look into the credit card if the points accrue twice as quickly.

And, on our financing paperwork that was sent... because our credit scores weren't the greatest... the two interest rates that were listed were 14.75% for standard without direct debit and 14.25% for standard with direct debit. I believe that the preferred was 10.75% and 10.25%, respectively.

CY

 

[thedon3]

I have been paying my loans online for the past 2 years. I use my debit and/or credit card depending where I want the points. I have had no issues. My dues comes out of my checking account.
Hope this help
Bobby

 

[Sandisw]

I'm not sure about the credit card... but the debit card is definitely 1 point for every $200. We'll have to look into the credit card if the points accrue twice as quickly.

And, on our financing paperwork that was sent... because our credit scores weren't the greatest... the two interest rates that were listed were 14.75% for standard without direct debit and 14.25% for standard with direct debit. I believe that the preferred was 10.75% and 10.25%, respectively.

CY

Disney Visa Credit Card pays $1 reward dollar for every $100 spent. There are certainly better reward cards out there, but we like having the Disney one since we know we have use for the rewards and that they will get used.

It sounds like Disney has changed the difference for financing as when I was looking in to it last year, it was a 1% difference between auto and pay on your own.

 

[thedon3]

I use my debit card for airmiles, gets us free trips to WDW and other places.
Thanks
Bobby

 

[rmonty02]

I have been paying my loans online for the past 2 years. I use my debit and/or credit card depending where I want the points. I have had no issues. My dues comes out of my checking account.
Hope this help
Bobby

So the questions is...What interest rate did you get on your loan? You opted out of direct withdrawal?