Automatic credit card payments are widely used to pay for services. Also, shopping online, paying bills, among others. Well, being automatic, they allow you to carry out a payment plan in the time that they are required. If you still do not know how to activate under this form of retribution, continue reading.
What should be taken into account before paying a credit card automatically?
Payments automatically with credit card are a good option to carry an order of the bills to be paid. It is recommended that before activating it, it is good that you take into account the following points:
The first thing you have to do is verify that the company or store to which you are affiliating automatic payments is correct. To do this you have to look for the affiliation or registration data from the official website.
know your rights
It’s good that you know your rights regarding automatic payments. This method cannot be required of you, only in necessary circumstances. For example, when there is a credit card overdraft.
Be careful with fees
Another thing you should keep in mind is regarding the fees being charged to your account. It is advisable that you have enough to allow the company to make the corresponding debit. If, on the other hand, you don’t have enough funds, you could create an overdraft.
The payment rates, including those that are made automatically, can be checked from your bank. Like the company with which the automatic payment is affiliated. If you are going to review the rates from your financial institution, it is also good that you verify the authenticity of the website.
Review terms of agreements
Companies always deliver to their users an agreement in which all the information is related to contractual terms. It is important for you to carefully read the agreement and each of its clauses. Then you just have to sign to consent that you agree with the contract. It does not hurt to keep a copy of this document.
How do automatic credit card payments work?
Automatic credit card payments work in a very simple way. You, as the owner of a credit card, give him all the irelated information of your bank account (card number and debit authorization) to a company.
Then you grant precisely the permissions by means of a signature, to the affiliation company. Whether it’s the gym, game store, mortgages. This will do the withdrawal on a scheduled basis from the affiliated account automatically.
These withdrawals are made on a regular basis once a month or every time you make a consumption of this entity. It will practically depend on the prior agreement you have made with the company who does the charging. Keep in mind that there are agreements between these organizations in which you can determine if you pay the full amount at once or an amount month by month.
Example, if you make a purchase in the Apple Store from your iPhone or iPad, you can terminate that affiliate agreement whenever you wish. In case it is the first time that you buy in it or if you want to cancel all the expenses in the month with a single movement.
What is the difference between automatic payments and the ‘Bill-pay’ function?
The difference between the Bill-pay function and the automatic payments of a credit card is great. Well payments with the first function which is Bill-pay you as a user must decide and authorize the payment of your bank account to the company that is acquiring it.
On the other hand, while with automatic payments the business or company will debit your account the amount requested or allowed automatically without the need to ask your permission. If you decide to activate either of the two ways, you must take into account in the activation process the signs that I hack.
Although we live under the facilities that technology offers us, it is important to take into consideration all the recommendations of computer security. This in order to prevent us from being victims of cybercriminals of the network.