| Q: |
What are the benefits of ACH/EFT Payments for
consumers? |
| A: |
ACH/EFT Payment simplifies your life and takes the hassle
out of paying your bills. Most people spend the equivalent of three days a year paying
bills. ACH/EFT Payment saves you that time. ACH/EFT Payment also saves consumers an
average of $85 a year in postage and up to $30 a year in check costs (According to the
NACHA estimate of 20 monthly bills per family). In addition, many companies now are
encouraging their customers to use ACH/EFT Payment by providing financial incentives such
as lower interest rates on loans and vouchers for free service. |
| Q: |
How many people use ACH/EFT Payment? |
| A: |
A growing number of people are discovering the benefits of
ACH/EFT Payment. According to NACHA, 43 percent of all U.S. households use ACH/EFT Payment
for at least one recurring payment. And, 84 percent of ACH/EFT Payment users say they are
very satisfied with it. |
| Q: |
Are there any other names for ACH/EFT Payment? |
| A: |
Some people may refer to ACH/EFT Payment as automatic bill
payment, automatic debit, electronic bill payment or direct debit. |
| Q: |
What types of companies and organizations offer ACH/EFT
Payment? |
| A: |
More and more billers of all types now offer ACH/EFT
Payment for recurring payments, including the following:
- Mortgage Lenders
- Insurance Companies
- Mutual Funds and Investment Companies
- Car Loan Lenders
- Newspapers/Magazines
- Utilities
- Cable TV Companies
- Health Clubs
- Credit Card Companies
Non-Profits and Fundraisers
|
| Q: |
How do I sign up to use ACH/EFT Payment to make
payments? |
| A: |
Many billers offer ACH/EFT Payment programs to their
customers. To find out if the billers in your area offer ACH/EFT Payment, contact the
customer service or billing departments of each company or organization. If ACH/EFT
Payment is offered, the biller will send you an official enrollment form that you will
need to fill out and mail back. Often billers require that you attach a voided check to
your enrollment form to verify your bank routing and account numbers. Typically, your
payments will begin being taken out of you account automatically within one or two billing
cycles. If your biller does not offer ACH/EFT Payment, click here to automatically generate a letter to the biller requesting
that they explore this option. |
| Q: |
How will I know when my payment has been taken out of
my account or the amount that was deducted if I use ACH/EFT Payment? |
| A: |
Your funds will be taken out of your account on the
payment due date that you and your biller have agreed upon. If the date falls on a federal
holiday, the money will be deducted on the next business day. Most companies issue
statements for their customers. If the amount of the customer's payment varies each month,
federal Regulation E requires the company to send you a statement. Deductions also will
appear on your monthly bank statements. |
| Q: |
How can I reconcile any problems that I have with
ACH/EFT Payment? |
| A: |
Contact the billing company immediately. Any problem can
usually be handled quickly. If the matter is not handled to your satisfaction right away,
call your financial institution and stop payment on the ACH/EFT Payment until the problem
can be corrected. Be sure to tell your biller that you stopped payment and why. |
| Q: |
What prevents a company from accessing my account
whenever it wants to or seeing how much money I have in my account? |
| A: |
Regulation E prevents unauthorized debits from your
account. It also prohibits a biller from taking money from your checking or savings
account before the specified date. In addition, your financial institution protects your
personal account information. You actually gain financial privacy with ACH/EFT Payment
because checks pass through so many more hands. Your checks also contain a great deal of
information about you. With ACH/EFT Payment, the transaction passes electronically from
one institution to another. |
| Q: |
Will I still get a monthly bill from the companies? |
| A: |
For most monthly bills, the answer is yes. Ask your biller
this question to be sure. Some companies do not send a bill since one of the purposes of
ACH/EFT Payment is to reduce paper. Companies that bill for fixed amounts, such as
insurance and mortgage companies, are not required to send customers statements in advance
of the transaction. However, you will know this fixed amount in advance of the first
month's ACH/EFT Payment. |
| Q: |
With ACH/EFT Payment, can I make a partial payment? |
| A: |
In most cases, yes. For instance, you could specify a
certain amount be sent to your credit card company each month. For more details, ask your
biller. |
| Q: |
Do I need a computer or Internet access to use ACH/EFT
Payment? |
| A: |
No. ACH/EFT Payment is easier than that. Once you sign up,
your bank automatically debits the amount due from your account on the payment due date
and credits the account of your biller. You do not have to do anything to pay your bills
once you set up ACH/EFT Payment. The Internet is not involved at all. |
| Q: |
What if I don't have enough money in my account when
the ACH/EFT Payment is posted to my account? |
| A: |
You are obligated to have the money in your account for
your ACH/EFT Payments in the same way that you must have funds in your account if you
write a check. If you do not have enough money in your account, your financial institution
and biller may charge you returned item fees. |
| Q: |
Whom should I notify to cancel ACH/EFT Payment? |
| A: |
Notify your billers and your financial institution. You
will have to cancel your ACH/EFT Payment with each biller separately. |
| Q: |
Is there a central location where I can sign up for a
number of companies' ACH/EFT Payment programs? |
| A: |
You will find joint sign-up programs offered in various
states, including Ohio, Arizona, Hawaii, Massachusetts, Virginia, Michigan, Wisconsin,
Minnesota, Missouri, Pennsylvania and California. Call the ACH associations in these
states for details. Many more will be forming in the near future. For now, however, if a
joint program is not offered in your area, you will need to sign up with each of your
billers separately. |
Frequently Asked Questions about ACH/EFT Payments
