Guide to Automated Credit Card Payments

By Jennifer Calonia · November 17, 2022 · 7 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

Guide to Automated Credit Card Payments

Busy cardholders will likely want to take advantage of any opportunities to streamline their finances. A commonly used credit card feature that offers repayment convenience is automated credit card payments, or credit card autopay.

Understanding what autopay is and how it works can help you decide if enrolling in automatic payments is right for you. There are definite benefits to setting up autopay, but there are downsides to take into account as well. You’ll also need to consider how you’d like to configure credit card autopay, as there are a few different options.

What Is an Automated Credit Card Payment and How Does it Work?

An automated credit card payment is a recurring payment that’s scheduled for the same day each month. The automatic payment is typically made on a date that’s either before or on the statement due date.

Autopay allows cardholders the convenience of making payments on a periodic basis without having to manually set up payments. This also helps with avoiding late or missed payments.

When you enroll in automated credit card payments through your credit card issuer, you’re authorizing the issuer to request a certain payment amount on a specific date from your banking institution. When the autopay date arrives, your card issuer’s bank will send your bank an electronic request for the payment amount you’ve set up.
Your bank then will fulfill the payment request and send it to the merchant’s bank (i.e., your card issuer).

Recommended: How Credit Card Payments Work

Credit Card Autopay Options

There are a few ways to approach automatic bill payments through your card issuer. Each has its benefits and caveats, so assess your own financial situation before choosing an autopay strategy for your credit card.

Paying the Minimum

One option is establishing automated credit card payments for the minimum amount that’s due on your billing statement. The minimum payment is the smaller amount due that’s shown on your statement or online account, and the amount of it varies based on your total charges at the close of your card’s billing cycle.

Selecting to pay the minimum can be useful if you don’t have enough money to repay the entire statement in one fell swoop. By paying the minimum, you’ll fulfill the issuer’s minimum requested payment and keep your account in good standing — which, in turn, helps keep your credit score in good standing.

However, this means you’ll roll over the remaining statement balance into the next billing period, which will lead to incurring interest charges due to how credit cards work.

Recommended: What is a Charge Card?

Paying the Full Balance

You also can choose to pay the full balance as shown on the billing statement for each recurring payment. Paying the full balance is beneficial, because it allows you to avoid having a balance roll into the following billing cycle. This, in turn, means you won’t need to worry about accruing costly interest charges.

Recommended: How to Avoid Interest On a Credit Card

Paying a Fixed Amount

Another option is to set up automated credit card payments for a specific, fixed amount. For example, if you exclusively use your card to pay your fixed monthly cell phone bill of $50, you can establish an autopay for $50 toward your account on a recurring schedule. You can also use this option if you’d like to make extra credit card payments throughout the month.

Benefits of Automatic Credit Card Payments

Choosing a credit card that allows autopay can be helpful for various reasons. These are a few of the major upsides to enrolling in automated credit card payments:

•   You won’t risk forgetting about a payment due date.

•   You’ll avoid penalty fees and penalty annual percentage rates (APRs) for making a late payment.

•   Your positive payment history is maintained.

Recommended: When Are Credit Card Payments Due?

Drawbacks of Automatic Credit Card Payments

There are also some caveats to consider before you set up autopay. This includes the following:

•   You might face other fees if you have insufficient funds upon autopay.

•   You might slack on reviewing your monthly credit card statement for red flags.

•   You might inadvertently overspend on your card.

Factors to Consider Before Setting up Automatic Credit Card Payments

Before setting up automated credit card payments, honestly assess your finances and habits. Verify that you have sufficient deposits into your checking or savings account to cover the autopay amount you’ve set up.

And if you do set up automatic credit card payments, make sure you continue to check your monthly billing statements. Confirm that all transactions are yours and are accurate, and that your total spending is still manageable.

Setting up Automatic Credit Card Payments

The exact process for how to set up automatic credit card payments can vary somewhat from issuer to issuer, but in general, it’s pretty easy to do. You will need to first log on to your credit card account either online or through the mobile app. It’s also possible to call the number listed on the back of your card to have someone talk you through it.

Pull up the section labeled payments, and you should then be able to find an option to manage or set up autopay. You’ll need to connect a bank account where the payments will get pulled from and select the date and frequency at which you’d like the payment to occur. You should also be able to select which payment option you’d like (minimum due, the full balance, or another amount).

Tips for Stopping Automatic Payments on Credit Card

If you have credit card autopay activated on your account, but need to halt automated payments moving forward, federal law protects your right to rescind authorization for automatic payments. Here are a few ways to go about it:

•   Turn off autopay through your card issuer. Many credit card issuers give cardholders the ability to turn autopay on or off through the app or via their online account’s payment settings. Just make sure you do so before the next automated payment is processed.

•   Revoke authorization from your card issuer. Call your credit card issuer to revoke authorization for autopay. Then, follow up the call with a written letter revoking authorization, and requesting a stop to automatic payments on your account.

•   Request a stop payment order from your bank. You can also contact your bank to place a stop payment order on any automated payment transactions requested by the card issuer.

Regardless of how you stop automated payments from occurring, continue reviewing your monthly statement and account activity to ensure that the autopay has ceased.

What Happens if You Overpay Your Credit Card Balance?

Let’s say you inadvertently set up autopay to higher than the balance — what could you do then? Typically, credit card overpayments are processed as a negative balance. A credit for the overpaid amount should be reflected on the next billing statement, assuming your new transactions bring your account above a zero balance.

However, you do have the right to request a refund from the card issuer, instead of having it applied as a credit. The Federal Deposit Insurance Corporation (FDIC) has in place regulatory credit card rules for card issuers when it comes to an overpayment on your card account. It states that upon receipt of a consumer’s written refund request for an overpayment, an issuer must provide the refund within seven business days.

Recommended: Can You Buy Crypto With a Credit Card?

The Takeaway

Automated credit card payments are a convenient option, particularly for busy cardholders. In addition to helping you keep your card account in good standing, autopay can provide peace of mind. By automating payments, you’ll more easily avoid credit card delinquency, penalty fees, and penalty APRs for late payments.

Having a card that gives back through rewards is another useful feature to look out for in a credit card. When you apply for a credit card with SoFi and get approved, you can earn competitive cash-back rewards on all spending.

The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1

Take advantage of this offer by applying for a SoFi credit card today.


Is it a good idea to automate monthly credit card payments?

Whether enrolling in automated credit card payments is a good idea depends on your current financial situation. You must reliably have the payment amount in your checking or savings account each month, and not be at risk of overdrawing or having insufficient funds. Also consider your other financial responsibilities and personal money management habits to decide if automated payments are right for you.

Do automatic payments affect your credit score?

Thirty-five percent of your FICO credit score calculation is based on your payment history. Automatic payments can help you make on-time payments for at least the minimum balance due so your payment history remains positive. As long as the deposit account that automatic payment is drawn from has adequate funds, the credit card autopay transaction can be advantageous to your credit profile.

Do banks charge for automated credit card payments?

No, banks and credit card issuers don’t charge an additional fee to make automated credit card payments. Autopay is intended as a payment method convenience for cardholders. But ultimately, it helps card issuers and banks better secure repayment from customers, thereby lessening the risk of a late payment or delinquent account.

Photo credit: iStock/PeopleImages

1 When you elect to redeem rewards points as cash deposited into your SoFi Checking and Savings account, as a statement credit to a SoFi Credit Card account, as fractional shares into your SoFi Invest account, or as a payment toward your SoFi Personal Loan or Student Loan Refinance, your rewards points will redeem at a rate of 1 cent per point. For more details please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.

1See Rewards Details at

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

The SoFi Credit Card is issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Members earn 2 rewards points for every dollar spent on eligible purchases. If you elect to redeem points for cash deposited into your SoFi Checking or Savings account, SoFi Money® account or fractional shares in your SoFi Active Invest account, or as a payment to your SoFi Personal, Private Student, or Student Loan Refinance, your points will redeem at a rate of 1 cent per every point. If you elect to redeem points as a statement credit to your SoFi Credit Card account, your points will redeem at a rate of 0.5 cents per every point. For more details please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store
SoFi Android App, Get it on Google Play

TLS 1.2 Encrypted
Equal Housing Lender