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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 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. If a void check is requested be certain to tell the
company to use the ACH # above the signature, not the MICR line of the
bottom of the check. 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 or the
Credit Union 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.
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