Ron Lieber of TheLedger.com reports on the troubles of automatic bill pay. Initially an advocate for automatic bill pay, he lists four gotchas that you should take into consideration. Briefly we’ve highlighted the key points below:
- Errors – A company could over-bill you and you’ll be stuck with any overdraft fees, which could take months to get reimbursed.
- Issues with Canceling – Some technically deficient companies may not cancel the payments even after you’ve canceled their service.
- Expired Credit Cards – When your credit card expires, a company will still attempt charge you, but when declined, you’re stuck with the bill and possibly late fees.
- Security – The more you spread your credit card across websites, the more likely it’ll end up in the wrong hands.