Why I don't like direct debit

[audreyh1]

I had one bad experience years ago with direct debit so all my auto-pays are set up on credit cards except for our two Medicare Supplement bills. BC/BS wouldn't accept auto CC payment, only direct debit, so I reluctantly agreed.

BCBSTX allows bill pay from banks. That worked well for me. I used my member ID as my account number, I think.

 

[donheff]

Yeah, I dislike giving anyone direct access to my bank but I went along with it for the few that won't accept credit cards. I used to simply go online when the monthly bills came in and fire off a check. It was not difficult but it got screwed up a few times when I was traveling, so I switched everything I could to auto pay using credit cards where possible. Of course, the credit cards need to ding the bank. I still get paper bills because I will look at them and find it easier to skim through physical papers when looking for a specific charge.

 

[pb4uski]

I'm in the other camp. I think auto pay is the best thing since sliced bread and use it for all of our and DM bills. Fortunately, we have had few changes in residence so I have not had to deal with any transition issues... but for me and DM it has worked flawlessly.

 

[Rustic23]

All of auto-pays are credit card payments except one. Our water bill is ach. However, it is a small district, under 400 accounts, and I was Vice President of the board.

 

[scrabbler1]

I use auto-pay from my checking account for my 3 routine, small monthly bills (cable TV, phone/internet, and electric), as well as online auto-pay checking for my co-op maintenance. With the co-op payment, I get email notices at the various stages of bill preparation and payment, something which was useful when I the amount changed midyear a few years ago and I forgot to update it right away. I was able to change the amount before the check got sent out.


I won't use this feature for a larger payment to a business I am more likely to change at some point. For example, I use the ACH/checking account to pay my health insurance (they don't take CC) premium but I initiate it every month. I have changed health insurers several times in the last few years.


The auto-pay was very useful last July when I was in the hospital for 2 weeks and those 3 utilities had bills which came due and got paid automatically.

 

[kcowan]

We have one autopay that was set up for the landline 21 years ago. No problems. In the early years they over-billed LD calls but that always got sorted out the next month.

Everything else is to the CC which I pay online on-time. The only problem is with fraud when I have to change the CC number. But the card issuer will honor the pre-approved charges for up to six months on the old number. Annual charges, e.g. house insurance often take special handling because I do not want to send the 3-digit code in the notification email so they need to respond before I provide it.

 

[harley]

We have one autopay that was set up for the landline 21 years ago. No problems. In the early years they over-billed LD calls but that always got sorted out the next month.

Everything else is to the CC which I pay online on-time. The only problem is with fraud when I have to change the CC number. But the card issuer will honor the pre-approved charges for up to six months on the old number. Annual charges, e.g. house insurance often take special handling because I do not want to send the 3-digit code in the notification email so they need to respond before I provide it.

What card is that? I've had payments start bouncing within days of getting a new number on my DiscoverCard. I like to use it for the cashback, and I guess I have to admit I like their hyper alert fraud prevention activities too, even though it's a PITA sometimes.

 

[Danmar]

For someone who constantly "shuffles" between homes, auto pay is just too convenient not to use. Really haven't had any issues. Systems are quite different in US vs Canada though. In Canada the post office runs an email service for all major billers. When I get these bills I manually pay them through the bank's bill pay system. Whereas in the US most utilities are on auto pay.

 

[walkinwood]

Direct debit (from my bank or credit card) has saved me so much time over the years. We have moved twice - once across state lines - since I started using it for all our utilities, telephone, HOA, credit cards... absolutely anything that I can automate.

So far... touch wood ... no issues.

 

[rodi]

We were just discussing this... MIL moved last year from her home in one state, to an assisted living/memory unit in another state. DH is in charge of all the bills. All the income and all the bills are paid out of an account in the old state. DH was considering opening an account in the new state... then realized what a PITA it would be to get everything switched over. Looks like the Kentucky account will live on.

This is a good reminder to watch for the utility bills (trash and electricity) when the house (hopefully) sells in a few months. (New floors and termite repairs happening now hopefully on the market in about 3 weeks.)

Like some of the others here - everything I can pay auto by cc is. Gotta get those rewards. I have 2 utility bills that are "pushed" (I initiate the transfer) from checking... and same with paying the CC... I initiate the transfer. The only auto debit from checking I've ever allowed is the mortgage payment, back when I had a mortgage. It was consistent in size so I could plan carefully for it.

 

[easysurfer]

Like several others, when possible I put the auto pay to my credit card (love the cash back bonus). I have a few auto debited from my checking (electricity, cc bills).

My BCBS insurance premium allows for ACH through my bank, but I elect to pay each month (not autopay) with my cc instead. I don't trust their accuracy as seems ever since ACA, their errors have gone up and don't want them touching my bank account for that reason. Plus, come next year, I'm undecided if I'll stick with BCBS or not.

 

[jazz4cash]

I avoid direct debit as much as possible, but there are a few that I have accepted. It is a nightmare when the bank is hacked and you have to provide new info to each biller individually. I noticed many vendors want to push monthly debits and believe they want me to forget that I subscribed to whatever. It works too since it takes me an extra month or two to get around to canceling my monthly subscription to The Big Ten Network (or whatever) when basketball season ends.

I much prefer to push payments manually or via autopay from my BOA Billpay. I can see upcoming payments for 30 days and I have full control to edit the amount and timing. I use the ebill feature selectively. They use ACH or other payment system usually but it's surprising how many times they mail a check to the recipient. If they get hacked it does not affect Billpay


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[kcowan]

The only auto debit from checking I've ever allowed is the mortgage payment, back when I had a mortgage. It was consistent in size so I could plan carefully for it.

Yes I have to add that to the previous telco debit.

(The CC that honored the old card number for pre-authorized charges was Mastercard from BMO.)

 

[Fedup]

I don't allow automatic debit to my account because it's like giving one of my kids my credit card. Never again.


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[ziggy29]

As long as it's easy to turn off if I smell a dispute coming, I'm OK with it and I use it. And if it can be done with a credit card where I can dispute bogus charges so much the better. That said, if I have a bill that is a regular, recurring amount I'd rather use my CU's own bill pay feature than let the creditor/payee automatically draft from my account.

 

[youbet]

I'd rather use my CU's own bill pay feature than let the creditor/payee automatically draft from my account.

Me too! There have been a few occasions where we were traveling and I wished a few of the bills had been on autopay. But, generally, it's so quick and easy to go to the CU site and pay the bills by just typing in the amount and hitting enter, I just don't mind doing it.

Over the years, I've had a small number of battles with companies over bills. Just the thought of them being able to dip into my account at will and me having to fight to get the money back gives me the creeps.....

If I needed to use snail mail in lieu of autopay, I guess I'd probably go with autopay. But as long as my CU offers free on line bill pay in a format that's quick and simple to use, I go with that.

 

[audreyh1]

I have vehicle insurance, medical insurance, and a really tiny gas bill on direct debit.

And the IRS too - but there I tell them how much to take out and when each quarter.

And my HSA - but there I also set up the contribution amount and recurring schedule.

When I travel I use a separate bank account to withdraw funds via ATM (separate from my bill paying bank account).

So far I haven't had trouble switching medical insurance and having the prior company stop in a timely way. On the vehicle insurance - I went to direct debit after problems with credit card fraud and having card numbers swapped on me at bad times. They didn't take the alternate credit card I used as my "clean" isolated card.

In general, I avoid it though. My other insurance I pay annually with a credit card.

 

[rodi]

Me too! There have been a few occasions where we were traveling and I wished a few of the bills had been on autopay. But, generally, it's so quick and easy to go to the CU site and pay the bills by just typing in the amount and hitting enter, I just don't mind doing it.

Over the years, I've had a small number of battles with companies over bills. Just the thought of them being able to dip into my account at will and me having to fight to get the money back gives me the creeps.....

If I needed to use snail mail in lieu of autopay, I guess I'd probably go with autopay. But as long as my CU offers free on line bill pay in a format that's quick and simple to use, I go with that.

Unfortunately, my CU charges $5/month to use their bill paying system. So I go through the hassle of pushing the payments manually on the websites of the vendors.

I used it for a few payments over the summer when I was travelling because I had a few bills that didn't have web payment systems (Hello COBRA). And it was painful to get the CU to cancel it when I was back in town, and refund the 2 extra months they billed me.

 

[audreyh1]

Unfortunately, my CU charges $5/month to use their bill paying system. So I go through the hassle of pushing the payments manually on the websites of the vendors.

I used it for a few payments over the summer when I was travelling because I had a few bills that didn't have web payment systems (Hello COBRA). And it was painful to get the CU to cancel it when I was back in town, and refund the 2 extra months they billed me.

Gosh - don't you want a bank account with free bill pay for this stuff?

 

[jazz4cash]

Speaking of fees, the county charges 1.49 to pay property taxes via their website. It's 4.95 if you use a credit card. I never tried to push this payment from my bank account.


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[Dog]

I use the bill pay feature from CU account. I typically sit down for 30 minutes 2x/month to pay bills, update spreadsheet and do an overall review of finances. The bill pay feature will send me an email alert when a bill is close to being due it hasn't been scheduled to be paid.
If I'm planning a trip I just take care of all bills in advance by entering a future pay date. Love this.
Only two bills on auto pay. My gym membership to my CC and Vz cell from a checking account I plan to close in a few months (we plan to shop around for a cheaper cell plan at that time too).
I like having to enter the amount and dates in the bill pay system as it keeps me fully aware of what we are paying for services and when rates/costs change.


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[Fedup]

I'm planning a one time 4-6 month trip. I plan to prepay all utility bills. I knew a coworker who paid like $1000 for one of his utility bill, so that should cover it in case I can't access to my account online overseas.
The only problem I still have and have not solved yet is how to hold mail longer than one month.


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[btdt22]

I seldom change homes, but love to travel, so I prefer auto billing for utilities, phone, TV etc. Thirty some years now and no problems

 

[audreyh1]

I'm planning a one time 4-6 month trip. I plan to prepay all utility bills. I knew a coworker who paid like $1000 for one of his utility bill, so that should cover it in case I can't access to my account online overseas.
The only problem I still have and have not solved yet is how to hold mail longer than one month.


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That's where having a mail forwarding service like Escapees can help. They will hold longer, and send stuff to you if you like, upon demand. There are other such services.

Or forward your mail to a very good friend family member while you are traveling - usps temporary address change.

Or pay someone to check your house, pick up your mail, every two weeks.

 

[Fedup]

My kids will be here and so will my sister. But I'm not sure it's safe to transfer to their addresses, they both live in an apartment and that means they have small mailboxes. I need to check into this further. Thanks for the info.


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