Bill Pay Hidden Costs

csmith77 | Dec 26, 2020 | 40 posts since 2016

I recently used the transfer function of bill pay to send $25,000 from one CU to a bank. They did not use ACH but instead a paper check. The bill pay merchant immediately withdrew the $25K from my account and the paper check was not deposited until one week later. I lost 7 days of interest on the $25k at 3% $2.05 per day or over $14. Is this how they finance this service?

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Answers

Ratesaver | Dec 28, 2020 | 187 posts since 2013

You are better off using ACH ...My question is where did you find a bank the will pay 3% interest at this time.

111 | Dec 26, 2020 | 672 posts since 2019

csmith77 - You don't say which CU billpay you used, so it's impossible to comment with any specificity. However, I've run across more than one billpay service that have a stated policy of sending the initial payment for a payee by mail, meaning of course a paper check. Then, if that billpay service can determine that the particular payee can receive payments electronically, subsequent payments are sent via ACH.

Ally6770 | Dec 31, 2020 | 4,294 posts since 2010

I called around this week and most places had a limit of $2500 in the 4 credit unions I have checking accounts in. I did call Navy and they said they can do up to $7500 a day and $25,000 a week. I think I will check into it before next Jan when I will gift again. I just have the credit card draw from my checking account if I want to pay it off before it is due. I charge everything to my credit card. So really do not even know how to use bill pay.
I have had a gift mailed to me the first of the month and still do not have it. The tracking says since the 23rd that is on its way to the destination but doesn't say where. It did go from Chicago about 1 1/2 hours from me but was then sent to Pittsburgh about 8 hours away. That was on the 23rd. Mailed a card with checks to my son in Nashville Tn and it has been 2 weeks and he still has not received it. I keep checking my account to make sure no one has cashed it. So far so good. Am about ready to close that account and open another one in case someone has gotten ahold of it. One of the checks is dated Jan 1,

Ally6770 | Dec 26, 2020 | 4,294 posts since 2010

I also called to see if the credit union could or I could send money to my children accounts for gifting each year. I am getting very nervous about sending it through the mail. They only offered a wire transfer costing $25. Thought if I can pay bills for free that I could also send money to them for free.
Do banks do it? My son said he had a renter that deposited the rent into an account the first of the month for a couple of years. How was that done?

111 | Dec 26, 2020 | 672 posts since 2019

Ally6770 - I've fairly often sent funds via billpay to individuals (family members, friends, etc.), for fairly small amounts. As long as the person actually lived at that address and the address was not a P.O. Box, I've never had any problems doing so. These were cases where I set up the payee's information online, not via conversation with a CSR. Of course, billpay details at different FIs will differ.

Hooked | Dec 27, 2020 | 236 posts since 2019

I only learned of bill pay this year while doing a bank bonus that required three bill pays. With family members and small amounts, I use Zelle, which is instant.

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