Whether it is for utility bills or membership fees, recurring payments are something many of us will set up at some stage in our life.
Payments that are due at regular intervals can be frustrating to continue to manage manually, regardless of whether they are a fixed or varied cost, which is why there are different recurring payment options.
While some people will opt to use automatic transfer facilities or a debit card linked to their main bank account, many people choose to charge these payments to their credit card.
But this option will not work for everyone, so to make sure you know exactly what could be involved, here is a number of steps that will help you use a credit card for recurring payments.
Step One: Check Card Conditions
Looking at credit card terms and conditions before setting up a recurring payment is an important first step and could save a lot of money in interest payments from these charges.
While most cards now offer a number of days interest free, there are times when it will not apply to recurring payments and even on a low interest card it could end up costing more than it is worth if the conditions are not check first.
Some rewards cards, for example, only offer interest free periods for in-store purchases or for people who have not carried a balance during the last two statement periods, so it is worth checking before committing to recurring payments.
Step Two: Find Out The Cost And Frequency Of Charges
Anyone who wants to budget card repayments and check credit card statements for any errors should definitely take not of the cost and timeframe for recurring payments.
Usually the merchant or organisation involved in a recurring payment plan will let you know how much will be charged and when it will take place, but sometimes you may have to ask.
Step Three: Provide Card Information
To set up a recurring payment the merchant or organisation will need your credit card details.
These could be given in person, over the phone or online but whatever the method, make sure you know who is taking down the details and that the process is secure.
Step Four: Go Through Credit Card Statements
Checking the transaction details and balance information on credit card statements is encouraged for all cardholders but it is even more important when recurring payments are concerned.
There are times when the payment could be charged at a different rate by accident, processed twice or even times when payments could continue to come out of the account after the membership or fees have been cancelled.
While recurring payments can be easily dealt with using a credit card, these steps will help you get the most out of the system and your card.
even “pre-approved” credit card offers. While they may appear as a potential step in the right direction, selecting the wrong offer could send you back into a credit hole deeper than where you started. Most First Premier Bank credit cards do just that.