What Time Do Automatic Payments Go Through?


Automatic Payment

Technological innovation resulted in a lot of upgrades across many industries. The e-commerce industry and other industries benefitted from the much-anticipated evolution. With your card, you could make purchases from anywhere around the world. Also, you don’t have to queue up at your bank to make withdrawals; with your ATM or debit card, you could do just that. Technological advancement made it possible for people to make automatic payments for recurring bills. If you already use this method or intend to, you may want to ask, “when is payment taken?”

The time in which an automatic payment is taken depends on your bank and sometimes the merchant. Normally, you should expect the payment to be taken upon the expiration of the previous subscription. Check with your bank to find out the exact time (if they have one).

So there is this gym you attend monthly. Each month, you often sit down to write checks for all your bills, including your gym membership sub. The process is quite stressful and time-consuming. To solve this, you decided to set up a recurring or automatic payment for those regular bills like your gym membership bill, magazine bill, utility bill, etc. After setting up the payment at your bank, you decide to make enquiries on what time the payment would go through but wasn’t given a satisfactory answer. If you are this person, this article is for you.

What Happens When You Close a Bank Account?

What Time Do Automatic Payments Go Through?

Gone are the days when we rush to the bank whenever we need money for urgent expenses or whenever we need to send someone money for an urgent need. Gone are the days when we move around with a wad of cash stuck in our purses or bags. Gone are the days when we often sit down each month to write checks for our numerous recurring bills. In the modern world that we are in, such activities can be done without stress.

For instance, the advent of credit and debit cards has eliminated the need to carry cash around. They call it a cashless policy. With debit and credit cards, you can buy whatever you want or send money to whoever you wish. Magic, right? No! It’s the technology, and we have it to thank for making our lives easier, especially when paying those recurring bills.

Rather than set out time each month to review, arrange and scribble checks for your gym membership bill, cellphone bill, cable bill, including other recurring or necessary bills, you can easily set up a recurring payment and take such a task off your shoulders. However, it’s pretty funny that some people still prefer to pay their recurring bills the old-school way rather than embrace the easy, convenient, and pretty cool modern style of settling those bills. Well, what more can I say? I guess some people love stress, or they are just stuck with the past.

Ok, let us get serious now.

You see, even if you aren’t a fan of automatic payments, you should note that there are a lot of people who have this system set up, and, definitely, several others will join the bandwagon. If you are one of those who have set up a recurring payment already or if you intend to, you might want to know the specific time the payments go through. In other words, you might be itching to know the moment or the time the funds for your gym subscription will make the journey from your account to that of the merchant.

Of course, as I said, in this article, I’ll reveal that to you. However, before I let the cat out of the bag or quell your curiosity, let us divert a little. Where are we diverting to? You may ask. Let’s take a brief look at what automatic payment is before we continue on our little quest.

What Is Automatic Bill Payment?

Automatic bill payments are prevalent these days, especially when individuals have a stockpile of regular bills to pay.

Put simply; automatic bill payments are recurring money transfers approved by customers to settle a particular merchant regularly. Users always program the payments to pay several types of bills monthly. These bills include credit card bills, installment loans, cell phone bulls, streaming subscriptions, etc.

When you set up an automatic payment, you directly tell your bank to transfer certain funds to a merchant at a particular date. Such payments are usually made with a checking account or a credit card. However, in most cases, it can be initiated with the merchant, or you can set it up with the assistance of your bank.

When Do Automatic Payments Through?

There is no specific time as to when automatic payments go through. It all depends on when your bank decides to process it. Some automatic payment may go through early in the morning, while others may go through late in the night. If you want to know the specific time, you can contact the merchant or the bank if the merchant has no idea.

What Is an Outstanding Balance?

How Long Do Automatic Payments Take to Clear?

Fed up with the old-school method of settling those numerous regular bills of yours, you decided to join the bandwagon and embrace recurring billing. You set up the payment for your phone bills, gym bills, magazine bills, cable bills, and other recurring bills. You are quite aware of when the payments will be made as you scheduled them but what you aren’t aware of is how long it’ll take for it to clear.

Automatic payments don’t take time to clear, unlike their counterpart. You should expect that automatic payment of yours to clear instantly or within two hours if it qualified as “faster payments” under the UK banking system.

If your automatic payment doesn’t clear instantly, it should clear the following day. Mind you, a lot of things can delay the process. So ensure that you have no outstanding issue so as not to delay the process.

Recent Posts