Susan Tompor: What bank doesn't tell you about online banking, automatic bill pay

[Bozita]

Susan Tompor: What bank doesn't tell you about online banking, automatic bill pay
1:37 AM, Jun. 16, 2011
BY SUSAN TOMPOR
DETROIT FREE PRESS PERSONAL FINANCE COLUMNIST


How in the world can a rent check be late if you're using automatic bill pay or online banking? Or how can you risk late fees from some small utilities if you pay the bill online?

File this one under: What they don't tell you.

A local mother was in a dither when her son's landlord threatened eviction if the rent was not received soon. The apartment owner claimed the rent money did not show up.

Yet the mother had been paying the rent using automatic bill pay on her checking account for more than one year.

Huh?

What was the problem?

This is a quirky story that works out well in the end in this case, but the experience does tell you something about the system that you likely did not know. I didn't.

more...
http://www.freep.com/article/20110616/COL07/106160449/Susan-Tompor-What-bank-doesn-t-tell-you-about-online-banking-automatic-bill-pay?odyssey=mod|newswell|text|FRONTPAGE|s

[klook]

1. Your bank or credit union should warn you if they're going to issue a check

instead of electronic transfer to the payee. Mine does, and it varies from one payee to another. So you have to allow for that float time -- usually 3 to 5 business days.

[mysuzuki2]

2. Some do. I bank at the UW credit union and it is always

very plain when a check will be issued. And it seems to be that the payee is not set up to receive electronic payments.

[brewens]

3. I love online banking but it does require a little effort to keep

everything straight. It's way nicer than the old way. With direct deposit and online bill pay, I hardly ever have to actually go to the bank. My checking account isn't really a checking account anymore and requires almost no balancing. Very sweet!

[dmallind]

4. This is not unknown, and easily managed.

I have bill pay with three banks currently and three more in the past, and all mention this in the bill pay FAQ. Some do better jobs than others making it obvious on the bill-pay interface itself, but the obvious solution is to treat bill pay like mail anyway, and include a time float.

[madinmaryland]

5. Misleading artical. The landlord had lost the check in the clutter of his own home.

I have used on-line banking for years, my banks have always indicated which bills it will pay electronically and those that it won't (those are cut a check).