How to Set Up Automatic Payments
Automatic payments give you an easy way to pay monthly bills without having the need to write cheques to your creditors or utility departments. By entering the correct information, you won’t need to worry about missing a bill again.
Generally there are two broad methods to setting up automatic payments: Through your bank or creditors’/billers’ website.
Instructions
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Automatic payments through your bank
Most banks offer this service. This can be done by making automatic payments through your savings account. Rather than writing a cheque, and delivering it to the desired destination, you can easily make payments by signing up online.
Firstly you will have to go to the bank’s secured website, and fill in the relevant details in the appropriate field. The link will ask you to insert information about your creditors and the utility you want to pay for. You will need to list the utility bills like electricity, gas, water, cable service, home and cell phone, gym membership, insurance premium, mortgage etc. Enter the details carefully and recheck for any errors. Now you will also enter the address of the payee, and the date when the payment is due.
Most banks further give the option of recurring payments where they will pay the amount on your credit card even before it is due. However, check whether the service is being provided. -
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Creditors’ website
You can also make automatic payments by logging onto the creditors’ website. For instance, if you have a visa card, determine the bills you can pay with it. As most companies restrict you from pursuing this route, it is important to check which businesses permits the use of a Visa Card. Create an account if you don’t have one by going to the biller’s website and search for the option of auto payments.
There is a further option of recurring payment where the credit card company can ask your bank to make the payments by deducting the amount from your account. Same will be the case with most utility services which offer automatic payment methods.
You can also make payments with PayPal, which allows the transfer of money through the internet. Customers with a PayPal account make purchases by using a direct transfer, and will be charged monthly payments. However, make sure that your account has sufficient back-up funds before signing up for automatic payment through PayPal.
