Autopay - Ohjodi is right!

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LogicsHere
Posts: 976
Joined: Sat Aug 29, 2015 9:49 am

Re: Autopay - Ohjodi is right!

Post by LogicsHere »

The only item I have coming out of my checking account automatically is my Medicare Supplement and it's a pain because I have a bit of a time trying to remember to add it to my checkbook and finance program.

My co-op keeps asking us to let them draw automatically as well. Since my check is pretty much in the mail the day before the 1st, I rather keep it that way.

ohjodi
Posts: 1160
Joined: Sun Aug 30, 2015 3:57 pm

Re: Autopay - Ohjodi is right!

Post by ohjodi »

I'm sorry I somehow did not notice this thread, earlier (even with my name in the title! lol)

I'm sorry you had trouble with the cable company debiting your checking account. This really does happen frequently.

I've read the other comments, and I have to emphatically say that NO BILLER should ever auto debit your checking account, EVER. NOTHING. EVER. Auto-debits are keys to your money. They're just opening your account and taking your money, and errors are YOUR chore to correct. We don't open our purses at the grocery store and tell the cashier to just reach in and take what we owe, checking much later to see if it was correct.

If you do want to auto-pay some things, like insurance, There are a couple of options:

The best is to use YOUR BANK'S online banking website. You sign into YOUR BANK's online banking, and you tell your bank to send your payment TO your biller. You can do this each month, or set them up to auto-pay FROM your checking account. This does NOT give your billers ACCESS TO your money. Do not go to YOUR BILLER'S website and give them your account info (the key!) to reach in and take your money.

use a credit card, or open another checking account at your bank and use it only for auto debits. Even then you are still at risk if your bank's policy is that when your account overdraws they will take money from your other accounts to cover it.

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If you do decide to cancel any current auto-debits .....make sure you have enough money in your account for at least one more payment after you cancel. Some companies can take over a month to stop the debits, even if they tell you the next payment is canceled.
ohjodi

floridacatlover
Posts: 3790
Joined: Fri Aug 28, 2015 7:21 am

Re: Autopay - Ohjodi is right!

Post by floridacatlover »

Jodi,
I’ll look into having my bank autopay my health insurance premium each month rather than the other way around. That is the bill I want to make sure is paid in the event I’m ill or in an accident and can’t pay it myself. I did not realize the difference in having the bank autopay as opposed to the insurance company.

I hear you on the concern that when a direct debit is cancelled it might continue for an extra month. This happened with my mom’s monthly water bill after she died. I cancelled the direct debit and wrote a check for the next bill but it was also debited from her account. So it took an extra month to get it straight. For some reason the utility wouldn’t apply the overpayment to the next month but instead insisted on sending me a check.

P.S. I kind of understand there is a difference in who “pulls” the money from an account. I have an online savings account linked to my primary checking account. Different bank. If I transfer money from checking to savings using the online savings account, it is free. If I instead transfer money from my checking account to the online savings account, they charge $15! I think I did this once years ago before I learned my lesson.

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Jackielou
Posts: 7487
Joined: Tue Aug 25, 2015 7:51 pm

Re: Autopay - Ohjodi is right!

Post by Jackielou »

No autopay here either. I do pay online, but I do each bill individually.

BeckyO
Posts: 926
Joined: Fri Aug 28, 2015 11:32 am

Re: Autopay - Ohjodi is right!

Post by BeckyO »

The only autopay that I have is for my cell phone. Auto pay saves me $5/mo. If I walk-in or mail the payment or pay on line, it is $5 more than auto pay. i will check to see if I signed at the bank or the phone co.
BeckyO

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