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-   -   Do you auto-pay your CC accounts? (https://www.early-retirement.org/forums/f28/do-you-auto-pay-your-cc-accounts-95910.html)

cathy63 01-25-2019 11:00 AM

Your routing/acct# info is not exactly a secret, so I don't get the worry over having it compromised. You give it away every time you write a check or pay a bill from your bank account.

I do have two of our three CCs on auto-pay. I review the statements online when I get an email saying they're available, then I enter the payment amount in Quicken with the future date so I'll notice if I don't get a downloaded transaction that matches up to it later on. That's never happened though. It's been years now, and every payment has gone through automatically, on the correct date, and for the correct amount.

The third CC is the one we use for most of our everyday expenses and all the auto-pay bills that can be paid by credit card. The only reason I don't auto-pay that one is because if we made a large purchase one month I might have to transfer more money into the checking account to cover it. Initiating the payment manually is a safeguard to make sure I look at both numbers when I pay it.

The way I protect myself against ACH errors is
1) pay bills from a checking account that is at a different institution than our investments
2) only keep enough funds in the checking account to cover a month or two of expenses

I've never once experienced an ACH error, but I know they can happen, and this way the maximum amount at risk is the amount at that bank. The institution that holds our investment accounts would be happy to give us check writing privileges and overdraft protection linked to those accounts, but I would never want that. I'd be too worried that the one-in-a-trillion ACH error would happen to us and they'd sell off all our investments to cover it before they figured it out.

audreyh1 01-25-2019 11:14 AM

I opened a couple of accounts at Chase Bank a couple of years ago, because of their $500 bonus. And I decided that it would be convenient for autopaying the several Chase credit cards we had. Plus my brother banked there and I hoped for easy transfers to his account.

Well, the Chase credit card autopay has been super convenient, so it's been worth it just for that.

However, otherwise not really happy with them. I can't do transfers to my brother's account directly like I can with BofA for my other brother which works beautifully. Chase forces you to use Zelle for transfers, and Zelle has a $2000 transfer limit!

Also, they limit you to $5000 for mobile deposit!

So I've ended up walking into the branch to make a deposit into my brother's account bypassing their checking entirely.

Pretty much just using them to autopay our Chase credit cards now.

Jerry1 01-25-2019 11:24 AM

Yes, DW handles, but she has the CC on autopay but then gets a printed (mailed) statement and reconciles it. No problems so far. I’m trying to convince her to just download the statement but I haven’t been successful yet. If it were me, I’d just check the account under transactions and know that all is okay. Oh well, I don’t intrude on jobs that aren’t mine.

audreyh1 01-25-2019 11:25 AM

The billpay type pulling errors I've heard about are:

1) Some health insurance company in some other state (Florida?) a couple of years ago pulled multiple times from clients accounts causing all sorts of mayhem.

2) Last January our county did multiple pulls from owner accounts for property taxes. They were using a standard system used by counties and municipalities all over the US, so it wasn't them specifically, but their eCheck provider. One of our neighbors was fit to be tied! Understandably.

audreyh1 01-25-2019 11:29 AM

Quote:

Originally Posted by Jerry1 (Post 2178998)
Yes, DW handles, but she has the CC on autopay but then gets a printed (mailed) statement and reconciles it. No problems so far. Iím trying to convince her to just download the statement but I havenít been successful yet. If it were me, Iíd just check the account under transactions and know that all is okay. Oh well, I donít intrude on jobs that arenít mine.

I do reconcile receipts and then shred all the ones that don't need to be saved for warranty or tax or health insurance purposes.

In my computer calendar, I have entered the dates of when to expect a statement (recurring monthly) from each credit card. Between that and the email that most (all?) send when the statement is available, I can keep in sync. I download the statement and then go through my receipts comparing the statement and Quicken. Then I reconcile in Quicken and most of the receipts go into the shred pile. Been doing it that way for years and it's pretty fast and minimized paper.

Most credit cards are good about emailing me a few days before a payment is due.

RunningBum 01-25-2019 11:33 AM

I auto-pay everything I can, including credit cards. I get text notifications on a couple cards, and check PenFed pretty regularly for fraud.

foxfirev5 01-25-2019 11:42 AM

I pay as many bills as possible using auto pay with the Fido cash back card. However I manually enter the credit card payment from Fido bill pay. This due to occasional theft of the cc number. Since I already check the charges on a regular basis it's no big deal to make a payment with a couple of clicks.

Sunset 01-25-2019 11:43 AM

Quote:

Originally Posted by kgtest (Post 2178972)
I autopay the min to avoid any possible ding to credit for missed payment, and on the day its due just logon, look things over quick and make the full balance payment (I ain't giving anyone a dime before it's actually due).

I used to do that, it works great, until something screws up like forgetting, on a trip, internet is down at home, too busy, etc.

I still do that for the odd CC , especially my new CC's that I won't keep and are making large purchases on.
I also like the "trick" of pre-paying early enough to be sure there is no missed payment at a minimum.

My Chase auto pay of CC does that on the day it's due, and I get an alert telling me the payment amount. It works well.

razztazz 01-25-2019 11:45 AM

Mine are set for auto-pay only in case I am in the hospital someday with some outstanding charges. I always login to my account 2 or 3 days after the charge and pay directly.

kgtest 01-25-2019 11:47 AM

Quote:

Originally Posted by Sunset (Post 2179015)
I used to do that, it works great, until something screws up like forgetting, on a trip, internet is down at home, too busy, etc.

I still do that for the odd CC , especially my new CC's that I won't keep and are making large purchases on.
I also like the "trick" of pre-paying early enough to be sure there is no missed payment at a minimum.

My Chase auto pay of CC does that on the day it's due, and I get an alert telling me the payment amount. It works well.

DW would never let me forget lol. Every 15th of the month like clock work bills get paid. Works well for us and keeps the balance. Good to login 2x once to pay it and once to make sure it got paid (check the math)

jazz4cash 01-25-2019 12:22 PM

Do you auto-pay your CC accounts?
 
I manually push payments from checking account. I generally get an email with account balance and schedule full payment on due date from my phone. It takes 20 seconds. I do review the bill line by line but I also get email notice for every charge as they are posted.
The terminology here seems inconsistent: push, pull, autopay, billpay, etc. I consider ebill to be an invoice system. If I elect to receive them, they show up in my online banking. I can pay various amounts or pay some other way and still get paper and/or email bills too.

Katsmeow 01-25-2019 12:24 PM

For CCs, I pay online but don't do auto pay. I check my charges regularly and often pay during the month rather than when I get a statement. When I get a statement (online), I do go ahead and pay. I have alerts set up on my credit cards so I know when charges are made above a certain amount and know when there is a bill. For a long time, I got paper bills also in case I didn't notice a bill online but eventually I got rid of the paper statements because I had reduced the number of credit cards so it is easy to remember to check them.

W2R 01-25-2019 12:28 PM

For many years I didn't have a credit card other than one for work, which was strictly limited to US government expenses and never for personal use. I didn't want a personal credit card because I abhor debt.

But then the ER Forum led me to "the dark side" - - five years ago I got the Amazon Visa card after reading about it here, and that is my only credit card.

I have it set to auto-pay in full every month by automatic deduction from my checking account. I like this because I don't have to rely on my very imperfect memory to make sure I pay on time. Chase manages the credit card for Amazon, and I have no complaints about their autopay.

I still detest the idea of owing money to anybody but I guess this is almost like being debt free. I love spending the rewards on Amazon.

SumDay 01-25-2019 12:51 PM

I've used auto pay for all my CC's for years, because I don't like late fees. The older I get, the more I think this is a good idea for me. I've never had a problem.

ALL our bills are auto paid in one form or another. I write one check a month - to church. I want them to get the full contribution. And I like throwing something in the basket.

CardsFan 01-25-2019 03:23 PM

Quote:

Originally Posted by kgtest (Post 2178972)
I autopay the min to avoid any possible ding to credit for missed payment, and on the day its due just logon, look things over quick and make the full balance payment (I ain't giving anyone a dime before it's actually due).

Bold by me.

I understand the sentiment, but last month my interest on the checking account was 57 cents. Not too worried about paying early and losing a dime. More concerned about forgetting and paying late, which cost $50 or so (with late payment penalty and interest).

bobandsherry 01-25-2019 03:34 PM

I've had my CC accounts all setup to auto pay full balance for what seems like forever. Never and issue and I never have to worry about missing a payment accidentally and paying a couple months of interest and late feedue to vacation, illness or just being plain dumb. Well worth it for me.

karen1972 01-25-2019 03:35 PM

I auto pay everything including credit cards, I let them pull it and pay in full.

I use to have one card that I would push pay and then I ended up going out of the country unexpected for work and forgot to pay, came home and switched it to auto-pay.

Its just routine now, get the email, download the statement into quicken, reconcile, enter the payment, and check my balance. I've never had any issues with it, though I only keep enough money in that account to cover 1 month of bills at a time.

Rustic23 01-25-2019 03:37 PM

Credit Cards are auto payed on the last day not to incur a penalty. Have for at least 5 years with no problems. Every time a card is charged I and DW get an email and text. That is how we check charges.

Dawg52 01-25-2019 03:52 PM

I started auto paying cc not long ago. Although I had reminders set up to pay online this is just easier. I review my acct 2-3 times a month plus look at my monthly online statement for bogus charges. I think I have most everything on auto pay now except condo fees.

FireFool 01-25-2019 03:57 PM

Nearly everything that can be auto-paid I do. My first choice is to have it drawn against a rebate credit card, but if they don't support that, or charge extra for CC's I'll usually allow them to pull ACH's from my checking account. I'd never allow a gym or other tiny businesses to auto pull from checking though - I don't trust their systems security capabilities, but I have no qualms about the major CC companies doing so. I still have them send paper bills that I review the charges and record in my checking account. The one e-bill that I was forced to do by my electric company in order to autopay with a credit card I'll admit gets very little monthly review and that's the primary reason I don't have other bills e-mailed - I need the paper prompt to do the scan of the charges put through. I never have to worry about late payments, and when I'm traveling I don't have to log on to any of my financial accounts on public/semi-public (e.g. rental condos) wi-fi's to pay any bills.

I've been auto-paying accounts for well over two decades at this point and have never had any problems.


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