Autopay, also known as automatic payments, is a feature that allows one to schedule and automate recurring payments for various bills and services. This convenient feature is widely used in the country to ensure timely payments for utilities, loan EMIs, credit card bills, subscriptions, and more.

Auto payments require setting up instructions with your bank or payment provider to automatically deduct the amount due from your bank account or credit card on a specified date. This eliminates the need for manual intervention and ensures that bills are paid on time, reducing the risk of late fees and service disruptions.

How to Use Auto Payments

Determine which bills or subscriptions you want to automate, such as electricity bills, mobile phone bills, internet services, credit card payments etc. You can then choose whether you want the payments to be deducted from your bank account or charged to your credit card.

After that, you can register for auto payments through the service provider’s website or mobile app. You may need to provide your bank account or credit card details and specify the payment date. Complete the authorization process, which may involve entering a one-time password (OTP) or signing an authorisation form.

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Adhil Shetty, CEO, Bankbazaar.com, says, “E-mandates for recurring payments via cards and UPI have enhanced customer convenience through use of technology. These methods also offer a safe and secure way to make payments. To promote the adoption of digital payments safely and securely, the RBI increased the limits for contactless card transactions and e-mandates for recurring transactions through cards and UPI from Rs 2,000 to Rs 5,000, effective January 1, 2021, at the user’s discretion. So, if you are making use of e-mandates, it is advisable to keep a track of payments and ensure you have sufficient balance to avoid disruption in services or late payment charges in case of delayed payments.”

Using Banking Apps and Portals

Most banks offer auto payment services through their online banking portals and mobile apps. Here’s how to use them:

  • Log In: Access your bank’s online portal or mobile app.
  • Bill Payments: Find the bill payments or auto payments section.
  • Add Bills: Select the service providers you wish to set up auto payments for and enter the required details.
  • Payment Instructions: Specify the payment amount, frequency (monthly, quarterly, etc.), and start date.
  • Confirmation: Review the details and confirm the setup.

What to Keep in Mind: Monitor Your Bank Account

It is a good idea to regularly check your bank account or credit card statements to ensure that auto payments are being processed correctly. Look out for any discrepancies or unauthorised transactions.

Maintain Sufficient Balance

One of the most important things is that you ensure that your bank account has sufficient funds to cover the auto payments on the scheduled dates. Insufficient funds can lead to failed transactions and penalty charges.

Keep Track of Payment Dates

You must remember the due dates of your auto payments to ensure that funds are available. Using a calendar or reminder app can help you stay organised. If needed, you can transfer funds within accounts in case of insufficient funds where money will be deducted.

Update and Review Payment Setting

If you change your bank account or credit card, update the payment information with your service providers promptly to avoid payment failures. Periodically review and update your auto payment settings. This includes checking for any changes in billing amounts, payment frequencies, or service providers.

Modify Auto Payments and Security

If you need to cancel or modify an auto payment, do so well in advance. Contact your bank or service provider to make the necessary changes. Ensure that you set up auto payments with reputable service providers. Be cautious about sharing your banking details and use secure websites and apps for managing auto payments.

Auto payments, thus, offer a convenient and reliable way to manage recurring bills and expenses. By setting up auto payments, you can save time, avoid late fees, and ensure that your financial obligations are met promptly. However, it is essential to monitor your accounts regularly and stay vigilant about security. Auto payments can be a valuable tool in your financial planning strategy if used carefully.