Has anyone else ever had this problem? What happened? Did your money get returned to your account?

I don't do online banking (yet) but am familiar with auto pay. I used it to pay my cell phone provider until they abused my trust by overcharging me double for 4 months straight. Called them each month, called my cc provider each month. The following month NOTHING HAD CHANGED. the cc provider told me I needed a confirmation # from the cell phone provider before they would stop allowing them to steal the difference.

Finally cancelled the phone and cc card. Your better off being in control of who can tap your account.

Best not to set up auto draft

March 28, 2006

What should you do if your bank offers to auto draft your account for your mortgage or some other payment?

Don't do it!

Clark has said that for years because the risk of companies drafting your account when you're no longer a customer is huge. Mortgage companies especially are known for this.

So, what's the alternative? Set up automatic bill pay from your end. Through your online bank account, you schedule payments. Then you have no worries about companies stealing form you on the other end.

Health clubs are also known for doing this. And it's super hard to get your money back in those circumstances.

If you must have a company deduct from your account, remember these three rules:

¥Ê First, if someone is going to draft from you, make sure it's from a credit card and not a debit card.

¥Ê When you cancel, make sure it's done in writing so there is no question it was properly done.

¥Ê And lastly, violate No. 1 if you're offered a discount or some kind of incentive to do so.

And if you do a debit withdrawal, watch your account like a hawk. If there is an improper debit from your account, you won't ever see that money again.

http://www.statesman.com/hp/content/shared/money/stories/clark/0601/060328credit.html

We did this at our last house and in 14 years did not have a single problem. Not once.

I have my telephone, cell phone, electricity accounts set up to do the same. Have been doing this for about 15 years without a single problem.

I know what day and what amount is coming out - I don't have to worry about something getting lost in the mail. And when we went for an extended trip to Europe, I didn't worry about bills getting paid on time.

Likewise, my pension and social security and DH's paycheck automatically go into our accounts.

There seems to be as much hysteria and paranoia about auto payments as about debit/cc cards.

Yes, glitches can happen, but checks can and do get lost/stolen in the mail. No system is perfect.

How kind of you to point out the perceived "deficiencies" of those who don't necessarily agree with you.

I'm glad things have worked out so well for you....

1) That statment simply is untrue. Not a fact.
2) The sarcasm isn't necessary. I think we may have to agree to disagree. I've pointed out more than once that carrying a checkbook is just as risky as carrying and using a debit card. There has been no response at all to that point.

When online banking first started (and back when my account was with Seafirst (now Bank of America), I started using their online payment method. It was complicated; I had to give the bank the payee information and rely on the bank to get it right. For one payee, the bank was sending the payment to the wrong payee and I didn't find out for several months when the right payee contacted me directly. It took a couple of weeks for the bank to get it straightened out and the money back in my account. Although inconvenient, I did not lose a dime. But I suspended all of the online banking at that point because clearly I could not trust the bank to get it right.

Now, when I set up auto payments, I do it with the payee - I give them my bank routing # and my account # and I authorize X amount to come out of the account on a particular date. These days, they also notify me via email a few days ahead of time.

It does work smoothly. It saves me nearly a dollar per transaction (.56 for the check and .41 postage). That adds up. And that's simply fact.

1) That statment simply is untrue. Not a fact.

It IS harder to get your money back from a botched debit card transaction then it is for a credit card. Plus, other transactions can be affected while the bank "decides" if you are entitled to your money back. Some can take a long time to determine this.

"I think we may have to agree to disagree."

Ok. The sarcasm was a response to your comment about inferring that those who don't use debit cards or auto-pay might be "hysterical or paranoid".

There is a recent story in the Boston Globe that talks about how one is more vulnerable one is if they don't have a layer of protection on their cards (PIN #).

Heavy debit card use raises fraud alerts
Banks' credit option more vulnerable to hackers

By Ross Kerber, Globe Staff : November 13, 2007
"One study by Dove Consulting in Boston this year put fraud losses from signature debit card purchases at more than 12 times losses from PIN transactions - $245 million vs. $20 million."

Debit cards seem to work very well for some. I will continue to use my ATM or credit card at least until the Fed is willing to offer the same protections for debit cards as they do for credit cards.

It IS harder to get your money back from a botched debit card transaction then it is for a credit card

dreamgarden - that's not the same thing as asserting that you will never see the money again.

inferring that those who don't use debit cards or auto-pay might be "hysterical or paranoid".

I never made the inference that those who don't use debit cards or auto pay might be paranoid. I did infer that people who make decisions based on faulty information rather than factual information were being hysterical and or paranoid.

And reading posts full of inaccurate information confirms that.

In your first post you said "I have my telephone, cell phone, electricity accounts set up to do the same. Have been doing this for about 15 years without a SINGLE problem."

In your very next post, you go on to say "When online banking first started (and back when my account was with Seafirst (now Bank of America), I started using their online payment method. It was complicated; I had to give the bank the payee information and rely on the bank to get it right. For one payee, the bank was sending the payment to the wrong payee and I didn't find out for several months when the right payee contacted me directly. It took a couple of weeks for the bank to get it straightened out and the money back in my account. Although inconvenient, I did not lose a dime. But I suspended all of the online banking at that point because clearly I could not trust the bank to get it right."

You said you have NEVER had a SINGLE problem and in your next post admit to having had one? So which one is it?

Next inaccuracy.

"I never made the inference that those who don't use debit cards or auto pay might be paranoid. I did infer that people who make decisions based on faulty information rather than factual information were being hysterical and or paranoid."

Read your sentence again.

"There seems to be as much hysteria and paranoia about auto payments as about debit/cc cards."

Where did you say that "that PEOPLE who make decisions based on faulty information rather than factual information were being hysterical and or paranoid"?

People DO have problems with debit/autopay. They also have to wait longer to get their money back. You said so yourself.

Why is it ok for you to point out others inaccuracies while admitting none of your own?

In any case, it is insulting to refer to anyone as being "hysterical or paranoid" just because they choose to adopt different banking methods.

No, What I actually said was "I said Have been doing this for about 15 years without a SINGLE problem."

The problem I had with online banking was OVER 15 years ago. Duh!

lucy, you are right on. There is no substitute for keeping records no matter which method one chooses.

My company can deposit to my acount, but my bank would not allow a reversal of the deposit, without my authorization.

If I use a debit card for a purchase and return the itm, a transaction occurs to return the money to my account

ninos, Wasn't that nice of that other poster to assume that if you are having a problem with online banking then it MUST be YOUR fault?! Same narrow-minded reasoning that goes with those who would infer hysteria or paranoia on those who choose to forgo online banking.

zone 8grandma- You never answered my other question. Duh. Trying to have a debate with you is like talking to Alberto Gozales. I get the picture. Since your more interested in being right then fair, don't bother trying to explain anything else.

This was after you posted a statement that is absolutely untrue ("You'll never see your money again")

People die in auto accidents too. Do you drive? Cross the street on foot? Get on an airplane?