Saving with Recurring Debit Card and ACH Payments
How do you pay your bills? There are several ways to pay your bills on time. While the process of writing and mailing a check is surely still effective, electronic payments are the primary payment method for SNAAC customers. Electronic payments can be more convenient and timely and also cost-effective.
There are two types of electronic payment methods: (1) debit card payments, and (2) electronic withdrawals from a checking or savings account, also known as an Automated Clearing House (ACH) withdrawal. Both of these payment options can be executed in a one-time transaction by the customer through a website or by calling customer service.
Depending on the state in which you live, there may be a $5 convenience fee for one-time debit card payments and one-time ACH payments submitted over the phone or on the Internet. Annual fees for using a one-time payment method each month could amount to an additional $60 in fees, which can be avoided with recurring ACH payments.
SNAAC recommends customers use recurring debit card or ACH payments, which makes the entire process automatic. Each month, the payment is withdrawn automatically. By setting up recurring payments, a customer doesn’t have to remember to initiate a one-time debit card or ACH payment or mail in a payment every month.
At SNAAC, we don’t pass convenience fees along to customers that enroll in recurring direct debit or ACH payments, saving you extra money. We’re also flexible and can schedule an automatic payment once a month on a day that is ideal for you, so it’s convenient and easy.
ACH payments have many additional benefits to customers, according to this banking article on About.com.● Better money management
Manually managing bill payments can be a time-consuming endeavor, not to mention the late fees and penalties incurred if something happens and prevents you from submitting your payment on time. With ACH, you know when your bills are paid consistently, and many banks provide an automatic notice to customers that the withdrawal has been made.
● Better organization
As bills stack up, managing finances can become increasingly difficult and time consuming. Recurring ACH payments give customers complete control over when and how their bill is paid. SNAAC can match the withdrawal to your monthly paycheck so that you know your obligations are met upfront when funds are available.
● Better security
When manual activity is removed from the process, error and fraud can be greatly reduced. Your payment process is enclosed in a secure payment system, minimizing the risk of your information becoming available to third parties and tampering. ACH payments also don’t subject your plastic debit and credit cards to manual input and processing by third-party vendors, so ACH is a secure, easy option for payment management.