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Pros and cons of using autopay

Setting up autopay can be a good first step toward becoming more organized with your debt payments. It is a great way to lower your interest rate and simplify your finances. In this article, we’ll explain how this feature works.
Pros and cons of using autopay
Autopay is an excellent feature to save you time and money, as well as keep your accounts categorized. It's also convenient if you want to avoid late fees for overdrafts.
In this article

If you are a business owner, you know that autopay is one of the things you need to be consistent and stay on schedule. Autopay is a feature that allows you to automatically deduct a fixed amount of money from your business bank account on a regular basis whenever you receive a statement online. Let’s break it down.

What is Autopay? 

Autopay is the automatic scheduling of payment on a recurring date within a consumer’s online banking portal. It is a convenient way to pay bills. It allows you to schedule an automatic, recurring payment on your online banking portal. This can save time and money, as you won’t have to remember or write down the exact amount of each bill.

Say you have a utility company that sends out bills every month for electricity usage at home. In this case, using autopay means that instead of manually entering these transactions into an account every month from scratch (which could take several hours), you could simply set up a recurring payment plan with the bank for when each bill is generated.

Autopay is one of the most popular ways to pay your bills online. We’ve been using it for years to set up our credit cards, phone bills, and even rent payments on time. So how can you benefit from autopay? 

Pros of the feature

If bill due dates are fixed, and you have the amount in your account, then use autopay. Autopay is a useful tool to help you manage your money. It can save time and money by helping you stay on top of bills without having to remember when each one is due.

Autopay is also good for those who want to avoid being late with payments or want an easy way out of paying at all times (without checking their balance). It can be used for:

  • Recurring payments.
  • One-time payments.
  • Payments on the same day every month or week.

Cons of the feature

There are a few drawbacks to using autopay. 

  • If the due dates change, you may have to pay more money than you originally intended. For example, say your car insurance is set up on autopay and you need to make a payment right before the due date arrives. It won’t be possible for you to use this feature until after that date has passed. 
  • Another potential problem comes from forgetting about cancelling auto payments altogether when they’ve already been made; once set up within accounts hosted by banks where users can see all recent charges taken out against them via cheque book balance updates every month – including any new ones added during holidays!

Autopay is an excellent feature to save you time and money, as well as keep your accounts categorized. It’s also convenient if you want to avoid late fees for overdrafts. However, drawbacks may vary depending on the bank account provider and how much money is being transferred across multiple accounts. It is a great way for consumers to take control of their finances!

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Author

Picture of Fatema Yusuf

Fatema Yusuf

A passionate writer, who loves to write about anything and everything. She usually writes about finance and investment options. She enjoys talking about personal development and loves to help people grow. she loves to cook for kids and upcycle old stuff to give them a new life.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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