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 Misconceptions About ACH/EFT Payment
| Myth: |
Signing up for ACH/EFT Payment may be difficult. |
| Reality: |
Signing up for ACH/EFT Payment is easy. Many of your
billers may have already sent you information about ACH/EFT Payment with your monthly bill
and included an authorization form. All you have to do is let each of your billers know
that you want to sign up. Call them or simply complete the authorization form. If your
biller does not offer this option, click here to automatically generate a letter to your biller
requesting that they explore this option. |
| Myth: |
If I have a problem with a ACH/EFT Payment, it is going
to be more difficult to reconcile than a check. |
| Reality: |
Problems with ACH/EFT Payment are rare. But if any
questions should arise, all you need to do is contact the biller. The problem can usually
be corrected immediately. If the matter is not handled to your satisfaction, call your
financial institution and stop payment on future ACH/EFT Payments until the problem can be
corrected. |
| Myth: |
ACH/EFT Payment will cost me money. |
| Reality: |
One of the benefits of ACH/EFT Payment is that it will
save you time and money in postage, checks and even late fees. Some financial institutions
do charge a small fee, such as 15 cents, for ACH/EFT Payment, but in most cases, it is a
free service. Ask your financial institution about its policy. |
| Myth: |
I will not know when my payment has been taken out of
my account or the amount that was taken if I use ACH/EFT Payment. |
| Reality: |
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,
the company is required to send a statement. Deductions also will appear on customers'
monthly bank statements. With payments made by check, you can never be sure when the
payment will post to your account. |
| Myth: |
With ACH/EFT Payment, nothing prevents a company from
accessing my account whenever it wants to. |
| Reality: |
Federal Regulation E prevents unauthorized debits from
your checking or savings account. It also prohibits a company from taking money from your
account before the date specified and requires a company to inform you 10 days before
changing the amount or date of the debit. |
Sources:
Direct Deposit and Direct Payment Coalition, www.directdeposit.org or www.directpayment.org
Board of Governors of the Federal Reserve System, www.federalreserve.gov
Mid-America Payment Exchange, www.mpx.org
NACHA, www.nacha.org
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