Online banking is something most of us couldn't imagine living without, and more than half of Internet users pay at least one monthly bill online. Some of those people pay each bill online by manually entering payment information every month, and the New York Times explored five reasons why these consumers are hesitant to automate their bills.
- Errors: Some people worry their bank will make costly mistakes when removing funds from their account, but banks will automatically credit your account for a mistake as long as you inform them within 15 days of receiving a statement showing the error.
- Service that won't end.: If you cancel a service and the provider continues accepting automatic payments, it can be difficult to get those funds back. It can be easier to stop automated payments if they're set up through the bank rather than authorizing a biller to withdraw funds from your account.
See three more reasons why people avoid automated bill-pay when you read more.
- Expired credit cards.: Expired cards can lead to unpaid bills without a customer noticing immediately, so be sure to call your billers with the new expiration date when you receive your new card in the mail.
- Security: Some people are concerned that granting too many companies access to payment information can compromise security. On the other hand, some think nonautomated payments create more security issues.
- Complacency: Don't just set it and forget it. Monitor your monthly payments to ensure you're not paying too much for one service and to be sure all your bills are paid.