banking warning-info you may not have known- I didn't.....

Discussion in 'Random Ramblings' started by klf73, Oct 14, 2008.

  1. klf73

    klf73 Mad Scientist

    Jun 1, 2008
    Due to my recent problems I learned some valuable info I thought I would share. For those of you that do direct payments from your banking account-did you know if you cancel the service, that is taking the money, you need to do it in writing? The bank told me it also needs to go certified. The bank gives the company 3 months to suspend the withdrawls, so even though you want to be done, it takes time [​IMG] . Had this happen with a well known credit card processing company for our small business, took months......
    If you sign up for auto pay with a credit card-If you use a different card for a payment(if there aren't enough funds in original card) and sign up for a ONE TIME payment, they can access this card even though you only authorized it for the one transaction(this is what happened to me, the company emptied my debit account). I am still fighting it, but the woman at the bank told me she only writes paper checks so she doesn't have to deal with these issues. She may have to pay for stamps, but has peace of mind that someone can't just take her money electronically.
    Apparently it is beyond my banks control, it is up to Mastercard because they supplied the debit charge. So beware-ONE TIME payments give them authorization to accesss your account again............
    So much for convenience, going back to the old fashioned way of writing checks [​IMG]
  2. cthrash1

    cthrash1 Songster

    Apr 15, 2008
    Somerset, KY
    Is this something fairly new? Because a few months ago I cancelled an auto withdrawal through my bank. All they asked was if I informed the company that it was set up with that I'll be cancelling it...15.00 service charge later and a few days it was done.
  3. klf73

    klf73 Mad Scientist

    Jun 1, 2008
    Hmmm, maybe it's an individual bank thing? [​IMG] This is a woman in the electronic banking department. Maybe I need a new bank [​IMG]
  4. arlee453

    arlee453 Songster

    Aug 13, 2007
    near Charlotte NC
    That's not a blanket thing in the banking industry. Of course, if you want PROOF that you asked a payment to be cancelled - on either end - the bank OR the vendor - a certified letter is nice, but usually not necessary.

    Personally, though, sounds like the bigger issues are with your credit card processing provider, your credit card company, and not the bank that handles your deposit/checking accts, per se.

    I'd just encourage anyone out there who is concerned to contact their own bank directly, as the policies and procedures do vary from bank to bank.

    Most of the larger banks do have HUGE policies in place to protect the consumer doing online banking transactions WHEN it is initiated from YOUR BANK'S online banking website. Same for using a visa/mastercard debit card that hits your checking account. For example Bank of America (my employer) has better fraud protection on their debit cards than on standard credit cards.

    If you are concerned about companies taking advantage of you, be sure to pay a bill by initiating the transaction through your online banking program RATHER than from the payee's online payment options.

    For example, you are usually safer paying your car payment by putting in the payment on your own bank's online bill pay setup program, rather than providing your draft information directly to the car loan company.

    It's not always 100% safer, but if nothing else, then you only have to worry about ONE companies policies, etc rather than trying to keep track and read all the fine print on dozens of payee's websites, etc. Make sense?

    Anyway, hope you get all the mess straightened out!
  5. klf73

    klf73 Mad Scientist

    Jun 1, 2008
    Thanks, I just wish I had this info before. I always thought if you checked the I AUTHORIZE THIS ONE TIME PAYMENT that was it, they couldn't use your credit card again [​IMG] . Live and learn [​IMG]
  6. horsejody

    horsejody Squeaky Wheel

    Feb 11, 2008
    Waterloo, Nebraska
    I've cancelled payments before with no trouble. I think it must vary from bank to bank and their agreements with companies like Mastercard. I guess you need a new bank.
  7. debilorrah

    debilorrah The Great Guru of Yap

    I absolutely hate auto payment withdrawls. I go online and pay my bills when I am darned good and ready to. No one is making any auto whatever's on my account.

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