Recurrent payments (regular, periodic)

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Now a huge number of different services are offered, which, in theory, should make the life of a modern person easier. For example, recurring payments. What is it, what are their pros and cons, let's look at the article.

What are recurring payments?

The name of the payment comes from the English recurrent payment, which literally translates as "regular payment". This type can also be found under the name "autopayment". The idea is that funds are debited from your account or mobile phone automatically, you only need to set up the system once, indicating the frequency of debiting and the required amount. It is important to observe only one condition: there must be funds in the account. In fact, this is a kind of schedule for payments and transfers.

Benefits

Recurring payments have a number of advantages. If you regularly, from month to month, carry out certain monetary transactions, then by setting up auto payment, you will save the time you spend on processing and completing them.

Further this is good because it doesn'tyou need to keep in mind the repayment dates and be afraid of late payment. This is especially convenient with loans, because the bank charges a pen alty for late payments on loans.

It is also convenient to set up automatic payment for a mobile phone when its balance drops below a certain level. This removes the worries that you may suddenly be left without communication due to an amount not paid on time. This will be relevant for those people who often go on business trips.

Another plus is that some services offer discounts on their services subject to auto payments. You will also save on commissions. With autopay, it is either not there, or it is lower than when using other payment methods.

Flaws

Recurring payments, unfortunately, are high-risk operations, as they are made without acceptance. This means that no one will ask your permission to withdraw money.

If auto payment is configured for external transfers, then you need to take into account that they are not executed on weekends and holidays. It is also important to ensure that the total amount does not exceed the established limit or card balance. Otherwise, payment will not be made.

Autopayments are not protected from the possibility of a technical failure in the system. Also, there is no way to suspend depositing funds for a while, you will need to delete all settings, and then set the parameters again.

Therefore, in the case of regular payments, you should act on the principle of "trust, butcheck".

Who wants auto-pay?

You can make regular payments for various goods and services, as well as serve business needs. Therefore, they are convenient not only for individuals, but also for organizations and private entrepreneurs.

In the interests of business, you can set up auto payments for access to storages of various content or SaaS services (for example, online accounting), set up payment of taxes and contributions.

For personal needs, it is convenient to make auto payments for cellular communications, the Internet, commercial television, utilities, and pay off loans. You can automatically set up money transfers, for example, to relatives or friends, as well as currency exchange, if you need it for some reason.

The largest online stores offer their users to subscribe to pay for goods, services and services.

If you participate in charity, then such transfers can also be set up as recurrent payments. If you are investing, you can also set up deposit data on a periodic basis. That is, in fact, almost any type of payment that is made with a certain frequency can be made recurrent.

It is also convenient to set up automatic payments for those who participate in microcredit systems.

How to reduce risks?

To ensure that paying payments does not turn into a series of troubles for you, follow the safety rules. Do not pass the card to third parties under any circumstances. Even the waiterthe restaurant has no right to take it away. All manipulations with the card should be carried out only in your presence.

The fact is that in order to make a payment, you need to know not so much: the card number, the name of the owner, its expiration date and the CVV\CVC code, which is publicly available on the reverse side. Therefore, there is no need to even steal a card from you, it is enough to rewrite the necessary information.

Keep the bank's phone number handy so that in an emergency you can urgently contact him and block the card. Connect a mobile bank, then you will receive an SMS notification about every movement on your current account. Use only trusted sites, shops and hotels. Regularly update anti-virus protection on your computer and do not use other people's PCs for payment transactions. Set a limit on internet payments. Some banks allow you to do this remotely, without visiting the office. Most importantly, don't forget to turn off auto-pay if you stop using any service.

These rules are not difficult to follow, but they will really help save your money.

How do I set up auto payment?

Banks offer to set up automatic payment for almost any type of payment. In Internet Banking, all you need to do is check the “Repeat regularly” box.

If you want to set up recurring payments and you don't need to pay for services at the moment, select "Set up auto payment". Enter the name of the operation there, selectregularity of execution (weekly, monthly or on specific dates), mark the validity period (without limitation, until a certain date or by the number of payments). The procedure in each bank may be slightly different, but the principle is the same everywhere.

You can set up auto payments not only through the Internet bank, but also through an electronic wallet. For example, "Yandex. Money" allows you to replenish the balance of a mobile phone.

Recurring payments and business

When you look at auto payments from the point of view of business owners, it turns out to be very profitable. Customers who have the option to set up recurring deposits are more likely to become regular customers as there is no need to re-enter details.

Auto payment makes the procedure for paying for goods or services easier, saving the user from a number of additional actions, which, in turn, increases the sales of the online store several times. This becomes especially important for those entrepreneurs who offer services of a regular nature: hosting, commercial television, training programs, access to any resources.