Direct payment is an efficient electronic payment alternative to paper checks. When you use direct payment, you authorize a company to electronically collect a preauthorized amount from your share draft (checking) or savings account to pay a bill or donation/pledge. So instead of writing a check every month, the Credit Union will automatically make the payment on a predetermined date for you. It's that simple.
Consumers and companies both benefit from direct payment. As a consumer, you'll save time preparing payments, save money on postage and check fees, improve your budgeting, eliminate the chance of a late payment and save time balancing your Credit Union statement. Companies benefit by processing payments more efficiently and crediting them to your account quicker. In some cases, companies can reduce their operating costs.
How do I get started and sign up for direct payment?
It's easy. If a company offers you a direct payment option, all you need to do is provide them with a written authorization to collect money from you account to cover the cost of a payment. You may also be asked to provide a voided check from your Credit Union Share Draft account. Many companies will provide you with an authorization form for you to sign and return.
TIP: Keep a copy of the written authorization for your records.
How are my bills/donations paid?
On the predetermined due date, the company's bank will instruct your Credit Union to deduct the amount due from your account. The Credit Union then withdraws that amount and forwards it electronically to the company's bank for credit to their account.
How can I be sure a payment was deducted from my account?
The payment will be shown on your monthly account statement from the Credit Union. The statement will indicate the payment date and amount, and the company that received the payment.
Will I receive a payment notice from the company each month?
If the payment amount varies or changes, the company must mail you, at least 10 days before the scheduled payment date, a written notice of the new amount and the date of payment.
Can I stop a payment?
Yes. Simply notify the Credit Union, orally or in writing, up to three business days before the scheduled payment date. If you call your Credit Union, you may also be required to provide a written request within 14 days. The Credit Union may charge a fee for each stop-payment. As a courtesy, you also may want to inform the company that you are stopping a payment.
What if the amount on the payment notice from the company is incorrect?
Contact the company immediately. If the company verifies the amount, and you still feel it is incorrect, call the Credit Union to stop the payment before it's posted to your account.
What if there is a discrepancy between my Credit Union account statement and the payment notice I received from the company?
Notify the Credit Union immediately. You have up to 60 days from your account statement date to notify the Credit Union in person, by telephone or in writing of an unauthorized payment or incorrect payment amount. If you notify the Credit Union in person or by telephone, you may also be required to provide a written confirmation within the 60-day time period, you should receive credit for any unauthorized or incorrect payments. If the Credit Union needs more than 10 days to investigate and resolve a matter, it must return the amount in question to your account during investigation.
How do I discontinue my direct payment arrangements with a company?
You must send a written request to the company if you no longer want to pay your bill/donation with direct payment.
With direct payment, can the company obtain confidential information about me?
No. The only information available to the company is on the authorization form you signed to begin direct payment. Companies do not have access to your account balance or any other information about you maintained by the Credit Union.