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Pre-authorized Debit


I've usually paid manually by credit card, but have decided to sign up for pre-authorized debit. My current billing cycle ends on August 6. Generally, is this enough time for this to go into effect? I've read that it takes banks around a week to receive the information. Also, if I decide to switch back to paying manually - I may not keep this account open - I'm aware I have to call in, but am I charged for this?

3 replies

Userlevel 7
I would pay my bill manually this month as it could take up to a billing cycle for pre-authorized payments to take effect. When the time comes where you want to remove pre-authorized payments, you can just call in to have it removed and no, you won't be charged anything to do this.
Userlevel 7
Badge +4
Generally speaking, I'd actually recommend pre-auth credit over pre-auth debit, mainly because if there are ever insufficient funds in the account to make the payment you're looking at about $40-$50 in NSF penalties between the bank and Koodo. Pre-auth credit has no such penalties associated.
When signing up for pre-authorized debit, it will take a full billing cycle for it to kick in. So as Ahmad already suggested, do a manual payment first, then the pre-auth debit will kick in.

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