Automatic payments or AutoPay is a new, modern way to pay for your expenses. The idea of setting them up can seem challenging for some, but it couldn’t be more simple!
Think about the way you’re paying your bills. If you’re reading this, it’s possible that you do this manually: maybe you write a check for them or make weekly payments for each service. AutoPay is just another method that can potentially make your life much easier.
The innovative part of this payment method is that it’s made automatically, with a checking account or a credit card. When you set it up, your bank will transfer a set amount of money on a fixed date in order to pay a bill. You can do it from your bank or with a creditor or vendor.
If you’re paying with a checking account, your money will be electronically routed from your bank to the company you’re paying. This is done through an electronic payment system called ACH (Automated Clearing House). When it comes to using your credit card, AutoPay will just appear as a recurring charge on your account.
The first way to set up an AutoPay is through your bank’s website. When you go to the “Bill pay” section after you’ve logged in, you’ll be able to write the information from the company you’re paying. This can include the payment address and the account number.
Your bank will either make the payment through ACH or through check. In the first case, your bank would have the vendor’s electronic payment information. In the second one, your bank wouldn’t have this data, so it would simply generate, print and send a check to the vendor, automatically.
You can also set up automatic payments through the company, creditor or vendor that you’re paying. If they have a website you can log on it ad set an AutoPay there. This will require your account information and a chosen date for the payment. After that, the money will automatically be taken from your account each month.
Lastly, you can set up AutoPay through your credit card, but only in bills that accept these cards. For this, you need to log into your card’s online account and enter your credit card information, as well as a date to make the monthly payment.