Recurrent payments (regular, periodic)

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 they have pros and cons, let's consider in the article.

What are recurring payments?

The name of the payment comes from the English recurrent payment , which in the literal translation sounds like a "regular payment". This kind can also be found under the name "auto payment". The idea is that the funds are debited from your account or mobile phone automatically, it is enough to set up the system only once, indicating the frequency of writing off and the required amount. It is important to observe only one condition: the account must be cash. In fact, this is a kind of schedule for payments and transfers.

Benefits

Periodic payments have a number of advantages. If you carry out certain monetary operations regularly, from month to month, then by setting up an auto payment, you will save time that you spend on their registration and execution.

Further it is good that you do not need to keep the dates of repayment in mind and be afraid of late payment. Especially it is convenient with loans, because for the delay in making funds for loans, the bank has a fine.

It is also convenient to set up an auto payment for a mobile phone while reducing its balance below a certain level. This removes anxiety about the fact that you can suddenly be left unconnected due to the amount not entered on time. Actually it will be for those people who often go on business trips.

Another plus is that individual services offer discounts on their services provided that they are issued auto payments. Also the advantage is the savings on the commission. At auto payment it either is not, or it is lower, than at use of other methods of payment.

disadvantages

Recurrent payments, unfortunately, are related to high-risk transactions, since they are made in a non-acceptance order. This means that your permission to debit money will not be asked.

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

The autopayments and the possibility of a technical malfunction in the system are not protected. Also, there is no possibility to suspend the 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, but check".

Who is comfortable with auto payments?

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

In the interests of business, you can set up auto payments for accessing the repositories of various content or SaaS-services (for example, online accounting), adjust the payment of taxes and fees.

For personal needs it is convenient to make auto payments for cellular communication, Internet, commercial television, utilities, to cancel credits. Automatically you can set up and transfer money, say, 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 configured as recurring payments. If you are engaged in investments, then the data of depositing funds can be adjusted on a periodic basis. That is, in fact, virtually any type of payment can be made recurrent, which is made with a certain periodicity.

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

How to reduce risks?

To ensure payment of payments does not turn into a series of troubles for you, observe the safety rules. Do not transfer the card to third parties under any circumstances. Even the waiter in the restaurant has no right to carry it away. All manipulations with the card must be made only in your presence.

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

Keep the phone of the bank near at hand, in an emergency, immediately contact with it and block the card. Connect a mobile bank, then you will receive an SMS message about each traffic on your current account . Use only proven sites, shops and hotels. Regularly update anti-virus protection on your computer and do not use other PCs for payment transactions. Set a limit on Internet payments. Some banks allow you to do this remotely, without visiting the office. Most importantly - do not forget to disable auto payment if you stop using any service.

These rules are very easy to follow, but they really help save your money.

How do I set up an auto payment?

Banks for almost any type of payment offer to set up automatic payment. In the Internet Bank, you just need to check "Repeat regularly".

If you want to set up regular payments and services you do not need to pay at the moment, then select the "Set up auto payment" option. There, specify the name of the operation, select the regularity of execution (weekly, monthly or by specific dates), mark the validity period (without limitation, until a certain date or by the number of payments). The procedure for each bank may differ slightly, but the principle is the same everywhere.

You can configure 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 your mobile phone.

Regular payments and business

If you look at auto payments from the point of view of business owners, it turns out to be very profitable. Buyers who have the ability to set up a regular deposit of funds often become permanent, since there is no need to re-enter details.

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