Anyone stop using online banking?

[Jean in Newcastle]

I switched to online banking a few years ago.  It seemed so much easier.  But I'm getting more and more frustrated.  I just called on a bill because I got a late notice and a late fee on a bill that I had paid on time with online banking.  My account showed the bill as paid that same day (not just pending).  The utility said that it didn't reach them for a week.  Now this example was longer than most, but I've been running into things like this more and more- things I paid on time but that took extra time to reach the vendor despite showing paid on my end.  I was particularly mad about this last bill because my bank is one block from the utility - I mean, they could have walked the block and handed them the money!  So I'm thinking about going back to checks.  Of course I would have to take into consideration how long it takes to mail things but I always try to leave a buffer anyway.  And I would have to pay for postage and checks.  But I'm getting fed up with the online banking thing.  

[Guest]

We actually switched to online banking after we kept mailing in bills that were either eaten by the post office or lost at the utility, and then charged overages when we had paid two weeks before the deadline.

 

Online banking is fabulous. We have had a few payment issues like the ones you describe, but still far less hassle for us than paper banking. It simplifies our lives to have bill pay automatic, even if we have an issue ever six months or so.

 

I'm sorry you're having such a headache, Jean!

[ajfries]

I've been using online banking for 10 years or so & I've never had any problems on the bank's side. I have had it happen where the biller received the check but didn't process it until after it was due. But in that case, they usually "mark" the payment as received and then back date it once it's paid. 

 

I think any downfalls you're having with using online banking could also happen with paper checks.  Something to keep in mind, some billers are paid electronically & others are paid by means of a paper check. And with my bank at least, the checks are issued from the headquarters back east, not here in the PNW where my local branch is.

[gardenmom5]

we had that with ONLY a tjmaxx card. we gave them slack that once was happenstance and something was lost in the mail as a brand new cardholder.  but we actually had it happen 3x in four months.   I also think they were the source of the ID theft I had. as it was shortly after I filled out the forms for an account. (according to the FBI - verified - it was a well established ID theft ring they were chasing across several states.)  I no longer use it, and no longer have any trouble with my online banking account.

[Lady Marmalade]

I wonder if your bank physically mails a paper check to the utility to pay the bill.  That would take longer, and is the reason I don't use online banking in that way.

 

Instead, I go to each individual utility and use their online bill pay procedure.  Some, like my internet bill, is auto-pay, I never have to go to the site and do anything.  I use that for bills that are the same amount every month.   Some, like my energy account, I have to log in and pay it. That way I can check over the bill every month and make sure everything is in order.   But either way, the day I pay at the website is the day my account is credited, and they take the money out of my bank account electronically, so it shows up there by the next day at the latest.

 

I love online banking and bill paying.  Takes me a few minutes to get it all done, and there's no worrying about anything getting lost in the mail or forgetting about an outstanding check. 

[Jean in Newcastle]

I think they do send a paper check for this particular utility (and perhaps for others).  I will look into paying the utility directly.   I do like some of the convenience of doing it online but I absolutely hate having things late because money is really tight and late fees make it even worse.  Today they waived the late fee once I asked them to look at my payment history and they saw that I always pay on time.  

[ajfries]

If you trust the utility company, another option is to have them withdraw the exact amount of your bill every month on whatever date you choose. The bill pay with online banking is initiated by your bank, where as the auto withdraw is initiated by the biller itself.

[Kathryn]

I use it through my bank for everything except the trash company. We had an issue with them saying they didn't receive payment even though it showed that it came out of our account before it was due. When we contacted the back and described the situation but hadn't yet named the business involved, the guessed it. Apparently, this company has done this to many people. The bank took care of that particular issue and recommended we use the company's online portal for payments instead.

[Um_2_4]

I only use online payment. Some payments are mailed by the bank versus electronic draft, but I know that in advance and make sure to have it sent early. But I like to pay all known bills ASAP at the beginning of the month so I see what is left and can distribute to other accounts/plan other expenses. So even if a bill isn't due till the 22nd, I pay it online on the 7th for example. And once I choose the date to pay, it shows if it is an instant transfer or a check to be mailed.

in your case, I would look for a different bank if it happens that often and with different bills. Maybe the bank marks the money withdrawn from your account on the 5th , but doesn't mail it till the 7th and the company receives it on the 11th for example.

[regentrude]

We love online banking, but you might want to change the way you pay your utilities. We use direct debit where we don't have to take action to pay the bill, but where the utility company is authorized to debit our account by the amount of the bill. If they are late, it's their problem.

 

[NoPlaceLikeHome]

I think they do send a paper check for this particular utility (and perhaps for others).  I will look into paying the utility directly.   I do like some of the convenience of doing it online but I absolutely hate having things late because money is really tight and late fees make it even worse.  Today they waived the late fee once I asked them to look at my payment history and they saw that I always pay on time.  

MY online bank tells you how soon the biller will be paid in instances where it is a paper check. Can you schedule the payment 10 days early or so? That is what I do when I use my online banking or I set up auto-pay with each biller.

[Laura Corin]

We love online banking, but you might want to change the way you pay your utilities. We use direct debit where we don't have to take action to pay the bill, but where the utility company is authorized to debit our account by the amount of the bill. If they are late, it's their problem.

 

We do the same.  We have our bills set up to smooth the payments through the year: it's a fixed amount each month.  That way there are no surprises and we have enough money for the debit.  I check the utilities periodically to make sure that we are not building up a surplus; in any case, our electricity supplier pays 3% interest in any balance.

[Scarlett]

I think they do send a paper check for this particular utility (and perhaps for others).  I will look into paying the utility directly.   I do like some of the convenience of doing it online but I absolutely hate having things late because money is really tight and late fees make it even worse.  Today they waived the late fee once I asked them to look at my payment history and they saw that I always pay on time.  

 

 

The bank is suppose to pay any late fees that result from this type of thing.  However, on the few bills I know that have to have a paper check sent, I make sure i allow at least 10 days.  

I love OLB.  Love, love love it.  

 

My water is one that needs a paper check.  They are right on my way to town.  Yet I try to avoid paying it in person.  I don't know why.  I just like to pay my bills all at the same time.

[Laura Corin]

The bank is suppose to pay any late fees that result from this type of thing.  However, on the few bills I know that have to have a paper check sent, I make sure i allow at least 10 days.  

I love OLB.  Love, love love it.  

 

My water is one that needs a paper check.  They are right on my way to town.  Yet I try to avoid paying it in person.  I don't know why.  I just like to pay my bills all at the same time.

 

Utilities require paper cheques?  Here they give discounts if you set up direct debits and do everything online.  It's so much cheaper for them to manage.

[Prairie~Phlox]

I love online banking, but I have anything that I can set up to pay directly to the company, not through the bank.  So At&t, comcast, insurance, electric, gas, they all go through a credit card or my bank. 

[Scarlett]

Utilities require paper cheques?  Here they give discounts if you set up direct debits and do everything online.  It's so much cheaper for them to manage.

 

 

Oh no I just meant if you do OLB.  If you do automatic debit/withdrawals yes you can pay utilities that way.

 

I don't do anything automatic debit  except Netflix. I always fear I will forget and be overdrafted.  

[Ellie]

I switched to online banking a few years ago.  It seemed so much easier.  But I'm getting more and more frustrated.  I just called on a bill because I got a late notice and a late fee on a bill that I had paid on time with online banking.  My account showed the bill as paid that same day (not just pending).  The utility said that it didn't reach them for a week.  Now this example was longer than most, but I've been running into things like this more and more- things I paid on time but that took extra time to reach the vendor despite showing paid on my end.  I was particularly mad about this last bill because my bank is one block from the utility - I mean, they could have walked the block and handed them the money!  So I'm thinking about going back to checks.  Of course I would have to take into consideration how long it takes to mail things but I always try to leave a buffer anyway.  And I would have to pay for postage and checks.  But I'm getting fed up with the online banking thing.  

 

I do on-line banking, BUT I still get paper statements and paper bills. I pay all my bills manually on-line through my bank. I have rarely missed a due date because of the bank's fault; usually when I submit a bill, there's a little calendar showing the date it will be received by the payee, and that's almost never wrong.

 

For some reason, when I pay Mr. Ellie's credit card from another *local* bank, it takes almost a week to be credited by the other bank. Why???? 

[Jean in Newcastle]

MY online bank tells you how soon the biller will be paid in instances where it is a paper check. Can you schedule the payment 10 days early or so? That is what I do when I use my online banking or I set up auto-pay with each biller.

MY online bank tells me the same.  They did not pay the bill when they said that they would.  I do pay bills early.  

[milovany]

No way. I can't imagine going back to writing checks and mailing them! This internets thing has some drawbacks, but it has some huge plusses, too, and online banking is one of the biggies for me. I love paying bills within minutes (i'm like Ellie; I don't have any auto-pay set up; I want to send the payments personally). The vast majority are paid electronically now (they don't mail a paper check), although with some obvsiously they still do that. I haven't had any issues at all and am sorry you did as you described. For me, an even bigger plus besides billpay is never having to balance my checkbook again! I can't tell you how many tears and drops of blood have been saved. Millions. Thinking about going back to regular banking makes me start to shake.

[plansrme]

When I've had this problem, it has been on the payee's end, not the bank's.  My mortgage company suddenly became incapable of promptly crediting my additional principal payments in a timely manner.  Since everything else from the bank was timely, and because my mortgage company (now former mortgage company) was atrocious in all respects, I knew it was not the bank's fault.  It's a pain to change banks, but repeated issues you're describing would be enough for me to shop around.  My bank has royally screwed up a couple of times, but it has been one-off types of issues (they sent my cancelled checks to another account holder once and once set up a regular transfer backwards, and then doubled it when they tried to correct it, causing me to bounce a bunch of checks).  An inability to get OLB right would drive me away for sure.

 

I don't know about anyone else, but I don't have any control over whether my banks sends funds electronically or via a paper check.  With my mortgage company, my regular payment was sent electronically; the additional principal payment (which I couldn't send with the regular payment, or the mortgage company would NEVER get it right) always went via paper check.  I set them up exactly the same, to the same address, with the same account number, but the bank decided how they would be paid

[jeremmy]

At our bank, it says that it was funded immediately. However it also has a separate date for when it is going to be deposited into the ultilitie's (or whatever) account. Most are 1 day, but there are a couple 3 day. I think some are 5 day, but I don't have those accounts so it doesn't matter.

[AngieW in Texas]

I haven't had any problems setting my online billpay to pay all bills one business day before they are due except for the dorm payment for my dd's school. That one I have set as a recurring payment and have it sent early. I think the problem is mostly on the school's end. They have said they didn't receive the payment, but when I called them and asked them to look for it, they found it. I think the school is just bad about getting the payments recorded on time.

[NoPlaceLikeHome]

MY online bank tells me the same.  They did not pay the bill when they said that they would.  I do pay bills early.  

Sorry. I must have missed that :blush:  I find this has worked so far for me and yeah unfortunately banks do mess up:(

 

I did find in the past that even the post office messes up so I would still consider sticking with online banking. Once I sent my rent check on time and it took the post office 10 days to deliver across town! Also, for me right now, I think having all regular bills/statements online helps protect our identity from theft since often the mail man deliver things that belong to others in our box and vice versa at our apartment (which even happened when we owned a single family home).

 

I also want to apologize for my poor typing skills which often make capital letters where they don't belong and may give the wrong impression as to the tone of my post :tongue_smilie:

[kewb]

I couldn't imagine giving up on online banking. I have yet to have a problem like the one you describe.

I do know the bank sends paper checks to the recipients who are not set up for an electronic transfer of funds.

Now that I am thinking about it some bills I pay through the bank and others through their website. Utilities I do through the utility company. Health insurance through their website, etc.

[MomtoCandJ]

I don't use online bill pay through the bank, I set up autopay for each company on that's company's website. The only bills not on autopay is our house payment and car payment and that's because we pay dh's grandpa directly and I just transfer money from one account to the other for the car loan.

[HSmomof2]

I really like online banking as well. I would hate to go back to writing checks. Our bank will pay the late fee and write a letter explaining it was the bank's fault if a payment is received late. We've only had this happen one time in about 10 years. And, the bank promptly apologized, paid the late fee and wrote the letter to the utility company.

[Laura Corin]

Oh no I just meant if you do OLB.  If you do automatic debit/withdrawals yes you can pay utilities that way.

 

I don't do anything automatic debit  except Netflix. I always fear I will forget and be overdrafted.  

 

But even if I pay bills one-by-one through online or telephone banking, it's just a transfer to that utility's account.  I can't imagine the bank here cutting a cheque.

 

The only exception is a banker's draft, which is a special kind of cheque that is guaranteed by the bank (because you have already handed the bank money) and will not bounce under any circumstances.  They are rarely used, and normally for large things like buying a car from an individual:

 

What’s a banker’s draft and when should you use them?

• Getting a banker’s draft is like asking a bank to write a cheque for you â€“ you give them your money, and they give you a cheque for that amount to give to the person you’re paying.
• The good thing about banker’s drafts is that they do not bounce through lack of funds.
• They’re often used for larger amounts and when people or organisations wouldn’t accept a personal cheque.
• You normally need to give your bank 24 hours’ notice to prepare a banker’s draft and there is likely to be a charge for the service.
• Remember: banker’s drafts aren’t guaranteed against fraud. If you lose one or it’s stolen, someone else could use it fraudulently. Always ask your bank to check the draft – this can sometimes be done by telephone.

[Scarlett]

A couple of my utilities do not have the ability to accept electroincs transfer. Water and trash pick up. Those two the bank has to cut and mail paper check for.

 

And we have the option of overdraft protection but the banks charge a huge fee for each of those transactions that they cover when there is insufficient funds. Banks vary....my credit union charges $27 per transaction.

[Laura Corin]

A couple of my utilities do not have the ability to accept electroincs transfer. Water and trash pick up. Those two the bank has to cut and mail paper check for.

 

I find that really surprising.  The amount of time they waste on processing cheques...

[Wheres Toto]

I do online bill paying through each company website.  I did have one or two that I needed to pay through the bank and I had a similar problem with them not getting there or not getting there on time so I don't do that anymore.  Anything that I can't do through the company site (our garbage pick-up, doctors offices) I mail a check.

[Robin M]

I gave up with B of A using their online banking.  They took too long to get payments sent and like you I'd end up with late fees.   Now  I have all utilities set up for automatic eft payments through each company.   Otherwise I write a check.

[OneStepAtATime]

Sorry for your troubles Jean.  I do as others have mentioned.  Some bills I pay using on-line banking but others I set up as drafts from the account (especially all utilities).  Normally there is no issue with a late payment for the on-line bills (although some bills have only a few days grace so if I don't pay as soon as I receive it, it may get paid a bit late.)  I just have had a lot of trouble with checks now.  People don't seem to want to deal with them and they also sometimes get lost in the mail.

[Suzanne in ABQ]

I've never had a problem with online banking, but we have USAA, and they're fabulous about everything!  They have a calendar that shows the soonest day payment can be made (never more than three business days), and I choose which day I want it to go.  They always do it on the appointed day.  

 

On a couple occasions, I was up against the deadline for a payment, and I went directly to the websites of the companies I was paying, and made the payment there (using debit from my bank account).  That way, the payment was posted that same day, even though they didn't receive the money until days later.  I incurred no late fees that way.  

[MomtoCandJ]

Speaking of online banking, I had to do the every 6 month password change and now I forgot what I changed it to :( oh well I will call Monday and get it reset.

[SparklyUnicorn]

Never had a problem.  Maybe try another bank?  That sounds very odd.