Today, most people have many subscriptions—to OTT services, magazines and newspapers, different apps, and so on.
You can enable autopay here, which automatically deducts the payment after the subscription period is over. If it is linked, you can set it up to debit your bank account or credit card.
“Automatic payment or autopay is a convenient payment option available on credit cards that allows the user to pay their recurring bills on time. Autopay is quite useful as it helps the user to utilize uninterrupted services and avoid any late fees,” says Rahul Jain – CFO, NTT DATA Payment Services India.
While it is one of the best solutions to make timely payments, tracking the list of subscriptions is equally important as users forget to cancel it.
Should You Link Your Credit Card To Auto Pay Subscriptions
To avoid any disruptions and any extra charges for late payments, it’s safe to link your credit card to autopay as it offers a lot of benefits to users. It provides convenience as auto-pay ensures timely payment without manually remembering due dates for subscribed services.
“By automating payments, users can enjoy uninterrupted services without being charged for late fee payments. Autopay makes it easier to monitor monthly subscription costs as the recurring payments will be reflected on the credit card statement,” says Jain.
Also, users can earn rewards, cashback, or points offered by the credit card.
On the flip side, users can end up paying unnecessarily for not using the services. “Also, when the subscriptions or trial period ends, users are charged without knowing it. The process to cancel a subscription can be complicated and if not canceled before the next billing cycle, users could keep getting charged,” says Jain.
The major drawback of autopay is that the amount cannot be refunded if the user wants to cancel the subscription.
How To Track Your Autopay Mandates On Your Credit Card
Firstly, track and set email notifications or SMS alerts for all transactions, including recurring payments made via banks/card issuer mobile apps or online banking portals. Users can check the autopay section on their mobile app where all subscriptions lists are reflected. This will help them to keep track of what they are being billed for. “ Utilize budgeting apps or spreadsheets to categorize expenses and set up transaction alerts to be notified of upcoming payments,” says Prashant Kumar, Founder and CEO, Kredit.Pe, a Bangalore-based fintech company.
Also, keep a watch on the transaction history section and sort repeated payments which will allow them to clearly spot the subscription payments. Meanwhile, check credit card statements to avoid any duplicate entries and more importantly, set up reminders for when the subscriptions or trial period ends, so users are not charged without knowing it.
