Setting up Autopay with a business without a maximum limit

px_eliezer_

I’m seeking people’s general opinions even though this is about a specific company (my Internet/cable provider Optimum).

The company encourages Autopay with checking account or credit card, and provides a $5 discount.

But up until now, there was the ability to set a Maximum withdrawal amount. Such a feature was an important protection against errors (!) or unexpected price increases.

But NOW, Optimum wants Autopay access to our checking accounts or credit cards, with NO LIMIT.

They are doing this only for Business customers so far, not residential.

Am I right in thinking that giving ANY company “carte blanche” to my checking account or credit card is a bad idea (checking account especially!)

Thanks for opinions.

telcodad

px_eliezer_ Am I right in thinking that giving ANY company “carte blanche” to my checking account or credit card is a bad idea (checking account especially!)

Yes

takeahike

px_eliezer_

I have a couple of autopays, mainly because it is required to just have the service or to avoid a surcharge. I avoid it if at all possible, making all payments manually each month. But with my ISP, Spectrum, they also offered a $5.00 discount, so I figured why not. So I set it up, and it didn’t work, and despite going over the setup with them a half dozen times (no exaggeration) and them assuring me that it was set up correctly it would still fail every month. It became so ridiculous that I just gave up and am just paying the extra $5.00, and stopped the autopay of course. Any I have are to a credit card where you can more easily dispute it or have the card number changed–I would never link it to my bank account that involves much more hassle to change, with having to get new checks, automatic deposits like social security and interest income payments and to other bank accounts or services that I have it linked to for transfers or payments that I also do manually.

egeezer

telcodad
As Takeahike says, setting up auto-pay using a credit card is usually safer than with debit cards or checking account. The dispute process is better with CCs, and with most you can set up text or email notifications when a card is charged.

I don’t know about debit card or checking account notifications other than some banks have such features. Personally, I’d go with a CC with an amount >$0.00 triggering a text notification. With a debit or checking account, charges hit your account immediately, and some businesses like gas stations will ping as much as $75.00 immediately, but not credit the account for days.

Blackbird

px_eliezer_ Am I right in thinking that giving ANY company “carte blanche” to my checking account or credit card is a bad idea (checking account especially!)

Yes! Not setting a dollar limit for such access assures that any fraud or errors by that company or others in their name will become YOUR problem to sort out, dispute, and resolve. While there may be some kind of “recovery guarantees” with various account types, the grief and side effects in resolving mischarges will be all yours. That could include in-the-meantime legitimate bounced checks/charges and all the resolution those might entail. IMO, any company that demands unlimited access to my funds is a company that I won’t do business with.

g121

px_eliezer_ I’m seeking people’s general opinions even though this is about a specific company (my Internet/cable provider Optimum).

Depends on the company .. & to my CC strongly preferred over Debit/Bank-account ..

I don’t mind doing it with my ISP Teksavvy, never had an issue with them in the ₁₅ years I’ve been a customer. Would I do it with Bell or Rogers .. Absolutely NOT !!

Kathy_9

px_eliezer_ Am I right in thinking that giving ANY company “carte blanche” to my checking account or credit card is a bad idea (checking account especially!)

Totally agree. I use credit cards for my auto-pays.

telcodad

Kathy_9 Totally agree. I use credit cards for my auto-pays.

And if you use a credit card that has cash-back or other rewards, so much the better!

GrumpyCanadian

px_eliezer_ I’m seeking people’s general opinions even though this is about a specific company (my Internet/cable provider Optimum).

I did things a little differently with my ISP. No credit card on file, and I definitely will not give them access to a bank account. I paid the first bill, then logged into my bank’s Web site and added them as a payee. I then paid the same amount as the first bill a second time, followed by adding a recurring payment, every month, for the usual bill amount, scheduled just enough ahead of time that they will have it in time for the monthly bill being issued. The result is that there is enough of a balance on the account for the month, plus a one-month “cushion”. Every bill has a credit balance, and I still have time to compensate in the event that there is an unforeseen charge or price increase. It also means that my bank has my account number for the ISP, and the ISP gets paid, but the ISP itself has no valid payment account numbers in their system.

I feel a little safer that way, in the event of a breach. I would like to think that a major Canadian bank is less likely to be compromised than a relatively small ISP.

px_eliezer_

GrumpyCanadian

Y’know that is VERY smart…!

GrumpyCanadian

px_eliezer_ Now that I think of it, there is one possible drawback: if I cancel, getting the additional payment back may be a bit of a hassle if I forget to plan ahead. Some of the smaller Canadian ISP don’t prorate on cancellation, and will try to eat the balance. I’m pretty sure that runs afoul of Quebec consumer protection law, but one would have to file a complaint and wait for a ruling for there to be any effect.