Auto Pay Terms Conditions Definition & Meaning

What Is Auto Pay Terms

By checking the box below, you are agreeing on Auto Pay Terms to allow us to deposit your loan payments from First Electronic Bank into your Cash App Stored Balance or the debit card you linked to your Cash App account.

Yes! We want to deposit your payments directly into the account that is most close to you. By signing up for this feature, Auto pay will automatically deduct a fixed amount from your checking balance each month. You can opt in and out at any point by visiting your Cash App Settings.

Automated payments can be used to pay different types of bills. For example, you may be able to use automatic bill payments to pay your:

  • Mortgage
  • Utility bills
  • Cell phone bill
  • Streaming subscriptions
  • Credit card bills
  • Auto loan payment
  • Student loan payments

How an Automatic Bill Payment Works

Setting up an automatic bill payment service is easy to do. Anyone interested in owing a checking account can set this up with the bank holding their funds (auto pay terms). The instructions are usually made online by the individual providing their account details, while very often ensuring they have chosen to delegate responsibility of paying bills to a vendor.

The setup once completed entails the person setting up the arrangement shifting away from worrying about paying bills and instead putting all of his or her energy into other things that demand time and attention such as running a household, raising children, etc.

There are three ways to set up automatic bill payment, depending on which biller you want to pay. You can schedule automated payments:

  • Through your bank’s online bill payment service
  • Directly with the biller
  • Using your credit card

Your Outstanding Balance

If you’ve applied for a loan or line of credit with us and your application is approved, the contract that details your agreement with us has a provision that allows us to collect payment from your Cash App Stored Balance if your Outstanding Balance falls under $0. If this happens, we can automatically collect the amount of your Outstanding Balance up to the balance available in your Cash App Stored Balance. Once we do so, we’ll give you notice unless there was still an outstanding balance made by another user on the same device before our collection.

We’re allowed to collect multiple amounts of any remaining balances as long as they’re under $0, but if at any time you feel there’s been some kind of violation please contact one of our representatives immediately and they’ll be able to discuss it with you.

Repayment Schedules 

If you want to pay off your loan in smaller amounts, you can choose an alternate repayment plan which will allow you to pay off the loan in regular installment payments split it up over a set period. This is an optional and flexible way for paying off your loans without any additional cost. By choosing this option, there is no need for automatization and your payment terms don’t change, however, the last installment on the final due date will be higher because there will be five small installments instead of one big one.

 Split it Up

You’ll make sure that Split it up repayments can be deducted from your Cash App. If you do not have enough money to finish your scheduled repayment, it will be deducted from your Cash App and the remaining balance will be taken from the account linked to your Cash App, if available.

Cancel Split it Up Repayments

Enrolling in Split it up repayments means that your card will be charged the full amount of the requested payment each time. If the purchase amount is $20, your bank account will be debited $100. To cancel automatic repayments, you must contact us directly through one of our applications or websites. We, unfortunately, cannot process cancellations by email so please do not email us requesting a cancellation through this medium. Any cancellation request sent by any other format than as specified above may not reach us and as such, we won’t be able to forward it at all.

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Authority to modify or combine payments

You give us the authority Auto Pay Terms to combine multiple payments that arrive in a single day to your account and make them in one treasury transaction accordingly. This can be either happening on top of the regular system of drafts, or there could be a form of security transaction made out on behalf of Auto Pay Terms.

You also authorize us to make any necessary corrections to your payment information or initiate a correction for an erroneous debit or credit in the future. If there is any missing or flawed information regarding your payment method, you authorize us to correct it efficiently and correctly with your financial institution.

Pros

  • Payments are easy to automate from a checking account.

  • Organizing automatic bill payments helps you avoid late payments. 

  • Paying automatically (and always on time) helps you improve or maintain a good credit score.

  • Once payments are set up, you don’t have to keep doing the task each month.

Cons

  • If you don’t keep a cushion in your checking account, an automatic payment could bounce.

  • You may incur a returned payment fee or late fee.

  • You could miss catching mistakes or fraud because the payment is automatic.

  • Automatic payments can be difficult to cancel.

How to Manage Your Automatic Bill Payment

  • Set up a bill payment calendar or use payment reminders so you’re aware of when bills are due to be paid.
  • Keep a list of your bills that are paid using automatic payments and the ones that are not.
  • Set up banking alerts to notify you when your balance is getting low to help avoid the potential for overdrafts when an automatic bill payment is processed.
  • Create alerts for your credit cards to notify you when a payment is charged to your card.
  • Log in to your online or mobile banking at least once a week to check your balance and review your account for any suspicious payment activity, and then do the same for your credit cards.
  • Remember to update your debit or credit card information for your automatic bill payment when you’re issued a new card because the old one has expired or been lost or stolen.

THE FINAL VERDICT

Auto pay terms can be a good thing when it comes to addressing your finances on the whole, but that’s not to say it’s appropriate for everyone. Make sure you have a chat with the bank or online financial account in question if you’re not quite sure whether auto-pay is right for you or if perhaps there are some more personalized payment methods that would suit your needs better instead.

If you like the idea of auto-pay but need flexibility from time to time, consider the following questions before setting it up:

  • Can you adjust or cancel your auto-payments?
  • Can you choose your withdrawal date and amount?
  • If you make a one-time manual payment, does it undo auto-pay for the future?

While auto pay terms certainly simplifies your life and helps to ensure you never incur a late fee, it’s not the golden bullet solution at making sure budgeting won’t be an issue in the future. It does, however, offer up many advantages for those looking for an easy way to budget themselves better by putting all financial arrangements in one place.

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