Pushing Payments to CCs vs Pulling

[Gmood1]

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@UncleB wrote:

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@Gmood1 wrote:
I keep it simple. I just let the CC company pull the payment. Here lately Capital One and Barclay's have gotten a little greedy. Pulling more than the statement balance. So I had to go in and cancel auto pay for both companies. Apparently Cap one changed their policy. Now if you have a balance, regardless if the current statement is paid. They'll pull the remaining balance or minimum depending on what auto pay is set to.

I had mine set to pay full current statement balance. These jokers debited the entire amount. Lol

Good thing I keep that debited account funded. It could have been ugly.

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+1

This is why I generally avoid 'pull' payments.  While I generally keep a cushion in my checking account and have overdraft protection, this could cause an inconvenience at best - and for many people would be disastrous. 

The only accounts I sometimes allow to 'pull' a payment are the Amex cards, specifically when I need to pay closer to the due date.  It's been set up for a while, and I don't have to worry about an account number being incorrect, etc. (I was extremely careful when entering my details, and I watched the first payment like a hawk).

My primary bank (USAA) uses Checkfree to process their bill pay transactions on the back-end, and it's generally really fast - sometimes as quick as the next business day.  Occasionally I'll make a payment from my Wells Fargo checking account, who have their own internal bill pay mechanism, and it's generally a bit slower, sometimes taking three days for a creditor that USAA will pay the next day.  The 'take-away' is that payment time can vary quite a bit from one bank to the next. 

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Before I didn't have an issue, because they would only pull if the statement balance wasn't completely paid. Now it doesn't matter, they'll tag you if the auto pay is on.

I really like using autopay as a back up if something slipped through the cracks that I missed.

Now I need to find another way to make sure these guys don't hit me early and still have a back up. What's the purpose of using CC's if you can't float the balance? lol

Discover only takes what they need. Unlike the two jokers sneaking in on me through the back door. ha ha

[Anonymous]

There may or may not be practical advantages to "push" payments over "pull" payments depending on the processing method (ACH vs. mailed) and the financial institution(s) involved.

For example, Capital One used to limit "pull" payments to 110% of the current balance (I don't know if they still do). If pending charges exceeded 10% of the current balance, there was no way to pay the current balance and allow for the pending charges with a single "pull" payment. Payment of both current and pending charges was possible, however, via an ACH "push" or a direct payment at a Capital One branch.

"Push" payments also avoid any adverse effects that may arise from a failed "pull" payment. If a "pull" payment fails, the creditor may look upon it unfavorably, but the creditor will never see a failed "push" payment. The most important thing is to fully understand the capabilities, limitations, and restrictions of the available payment methods in terms of speed, cost, and convenience and choose accordingly.

My bank's billpay service will credit an ACH "push" transaction without any additional fee next-business-day to any of my creditors if booked by 3:00 PM Pacific, making it extremely convenient. I only need to log in to one website to pay everything.

Your mileage with your financial institution and creditors may vary.  "Pushing" all payments from one site may have a small security advantage in that multiple creditors are not in possession of and storing one's checking account information.

[UncleB]

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@Anonymous wrote:
There may or may not be practical advantages to "push" payments over "pull" payments depending on the processing method (ACH vs. mailed) and the financial institution(s) involved.For example, Capital One used to limit "pull" payments to 110% of the current balance (I don't know if they still do). If pending charges exceeded 10% of the current balance, there was no way to pay the current balance and allow for the pending charges with a single "pull" payment. Payment of both current and pending charges was possible, however, via an ACH "push" or a direct payment at a Capital One branch."Push" payments also avoid any adverse effects that may arise from a failed "pull" payment. If a "pull" payment fails, the creditor may look upon it unfavorably, but the creditor will never see a failed "push" payment. The most important thing is to fully understand the capabilities, limitations, and restrictions of the available payment methods in terms of speed, cost, and convenience and choose accordingly.My bank's billpay service will credit an ACH "push" transaction without any additional fee next-business-day to any of my creditors if booked by 3:00 PM Pacific, making it extremely convenient. I only need to log in to one website to pay everything.Your mileage with your financial institution and creditors may vary. "Pushing" all payments from one site may have a small security advantage in that multiple creditors are not in possession of and storing one's checking account information.

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+1

This pretty much sums it up (for clarity I've put in paragraph breaks).

There is no right or wrong, correct or incorrect way to make a payment - as long as it 'makes the trip' the lender generally doesn't care.  There are times and circumstances to support the use of either method (and sometimes even both) and I'm personally happy that I have both available, and can choose which is best for me.

Just my 2¢ 

[Man-Of-Steel]

I believe my bank offers a bill pay service.  If so, I've never used it.  So, I'm definitely a "pull" guy when it comes to making my CC payments.  I've been using this method for years and never had any issues.  At the moment, my checking account is totally passive.  My paychecks get pushed into my checking account and I use the Barclays web site to pull funds into my Barclays Savings.

[Anonymous]

I prefer not to give a ton of personal companies my personal details. I push payments. My bank has all of them on one page and allows recurring, it also shows me how much I'll have as a balance once the payments go out. Most of them are ACH, only my attorney is a mailed check.

[takeshi74]

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@OMW2_HighAcheiver wrote:
Can someone explain the benefits of pushing payments to credit cards vs paying on CC websites?

A lot of this already covered above but:

• You can push payments for more than the balance, if needed for some reason.
• Push times can vary depending on your bank and the payee.
• Some feel that push is safer.
• You can only ensure that autopay covers exactly the minimum or statement balance with pull.  You may be able to schedule automatic push payments but your bank probably won't know anything about your minimum or statement balance with the payee.

Your call as to which you prefer.  FWIW I only pull.

[CreditMagic7]

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@Gunnar419 wrote:

I always push my payments because (1) it allows me to manage all payments from one spot (my bank's bill pay page) rather than having to enter sensitive financial data on a bunch of sites, and monitor all those sites to make sure payment has been made, and (2) because when I push, I can pay any amount I want and I can pay charges that are pending, which cc sites may not permit.

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^This for me in a nutshell.

My payments post lightning quick (mostly in 24 hours) and no chance of a lender's site computer malfunction (or on purpose) of pulling more then you select or some extraordinary delay in processing. (Excuses such as "your bank didn't clear on time etc.) crap.

YOU ARE IN CONTROL! and if there would be an issue you have a single source (YOUR BANK'S ONLINE BILL PAY) Department to remedy any matter for you.

[lg8302ch]

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@CreditMagic7 wrote:

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@Gunnar419 wrote:

I always push my payments because (1) it allows me to manage all payments from one spot (my bank's bill pay page) rather than having to enter sensitive financial data on a bunch of sites, and monitor all those sites to make sure payment has been made, and (2) because when I push, I can pay any amount I want and I can pay charges that are pending, which cc sites may not permit.

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^This for me in a nutshell.

My payments post lightning quick (mostly in 24 hours) and no chance of a lender's site computer malfunction (or on purpose) of pulling more then you select or some extraordinary delay in processing. (Excuses such as "your bank didn't clear on time etc.) crap.

YOU ARE IN CONTROL! and if there would be an issue you have a single source (YOUR BANK'S ONLINE BILL PAY) Department to remedy any matter for you.

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I just learnt my lesson the hard way and will have my first payment bounce....so embarrassing. What happened ? I am presently in vacation in Thailand and made my payments with the small iPad and "thick" fingers that selected the wrong account on the drop down list with the pull method. When I realized it was too late and there is not fast enough to replace funds 🤒 ...and worst is that after the first rejection I cannot even stop the pulling bank for the 2nd attempt..it is automatically done!  Apart from the embarrassment I will get hit with 2x 30$  (bank)and 1x 25$ (cc) for that stupid unintended error of mine. I think I will move back to push my payments again 😡  Wonder if that silly error will have any influence on bank account or credit card? It is my first time but on a new lender...my hands are tight here in Thailand and all I could do is send the payment again from the correct account but not avoid a 2nd automatic attempt on the wrong account. 85$ for this stupid wrong drop down menu at payment 😡 Clearly my fault!

[CreditMagic7]

Oh man. So sorry of course that it happened at all and i really don't blame you for opting for the IMHO the more better and safer method of PUSH versus the unintended consequences that are ever-present with the PULL technique.

Hopefully things get sorted out for you sooner than later on that.

[UncleB]

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@lg8302ch wrote:

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@CreditMagic7 wrote:

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@Gunnar419 wrote:

I always push my payments because (1) it allows me to manage all payments from one spot (my bank's bill pay page) rather than having to enter sensitive financial data on a bunch of sites, and monitor all those sites to make sure payment has been made, and (2) because when I push, I can pay any amount I want and I can pay charges that are pending, which cc sites may not permit.

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^This for me in a nutshell.

My payments post lightning quick (mostly in 24 hours) and no chance of a lender's site computer malfunction (or on purpose) of pulling more then you select or some extraordinary delay in processing. (Excuses such as "your bank didn't clear on time etc.) crap.

YOU ARE IN CONTROL! and if there would be an issue you have a single source (YOUR BANK'S ONLINE BILL PAY) Department to remedy any matter for you.

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I just learnt my lesson the hard way and will have my first payment bounce....so embarrassing. What happened ? I am presently in vacation in Thailand and made my payments with the small iPad and "thick" fingers that selected the wrong account on the drop down list with the pull method. When I realized it was too late and there is not fast enough to replace funds 🤒 ...and worst is that after the first rejection I cannot even stop the pulling bank for the 2nd attempt..it is automatically done!  Apart from the embarrassment I will get hit with 2x 30$  (bank)and 1x 25$ (cc) for that stupid unintended error of mine. I think I will move back to push my payments again 😡  Wonder if that silly error will have any influence on bank account or credit card? It is my first time but on a new lender...my hands are tight here in Thailand and all I could do is send the payment again from the correct account but not avoid a 2nd automatic attempt on the wrong account. 85$ for this stupid wrong drop down menu at payment 😡 Clearly my fault!

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Ugh... that's lousy!

I do have a suggestion if it just happened; even if it's already been returned by your bank once, if you put funds there quickly enough it's likely the credit card will never even realize there was a problem (and you'll save yourself a service charge from the credit card and a second charge from your bank).  Years ago I had a similar problem with a paper check (money in the wrong place) and once it 'bounced' I scrambled to make arrangements to have a cashier's check overnighted.  My efforts were rewarded by continuing to present the original check - even once the payment was successful - three (!) times and they only subtracted the bounced transaction from my account after the third presentation. For well over a week I had a large credit balance, since they got my cashier's check right away but still hadn't figured out my check had bounced.

Had I simply put the money in the bank, it would have cleared the second time and other than a single NSF fee at my bank no one would have been the wiser.  Instead, I called the card and 'fell on the sword' offering to send the cashier's check - which they accepted - but it ended up costing more money once things were settled (overnight fee, cashier's check fee, and three NSF fees in addition to the credit card fee... ah, good old days).  I'll also add that it's ironic that back when I needed OD protection I never had it (or could get it) and now that I have it, it's really unlikely I'll ever use it (unless something janky happens).

I think you'll be fine.  The only lender I've read about being really squirrelly about returned ACH transactions is Synchrony... otherwise I think you'll be OK as long as it doesn't happen again really soon.

Good luck, and let us know how it turns out! 

Edit:  found typo