Can you set up automatic credit card payments?

It’s never been easier to manage your personal finances. You can log into online banking and pay a credit card bill within seconds — or you can set up recurring automatic credit card payments to do it for you.

Options for automatic credit card payments

Many Australian banks and credit card companies offer automatic payments on credit cards. You can also leverage Autopay, a free third-party service.

By setting up automatic payments, your bank will pay your monthly credit card statement from your selected account. Depending on the bank, you can choose to pay either the minimum amount, a set number, or the full balance. All you have to do is ensure there are enough funds in the account that will be debited — otherwise, the payment could be cancelled and result in a missed credit card payment fee. For example, Westpac charges $15 for missed payments.

An automatic payment on a credit card is different from using the card to automatically pay other bills, like rent. You can use the credit card as the recurring payment option for your expenses, which will be set up on the respective provider’s website. For example, if you’re a Vodafone customer, you can use the credit card as the payment method, which will be tied to your Vodafone login, not your online banking.

If you’ve missed a payment before or like the peace of mind of knowing you won’t in the future, autopayments could be your financial best friend.

» MORE: How to transfer money from a credit card to a bank account

Benefits of automatic credit card payments

The ability to manually review your cash flow for upcoming payments, set reminders for due dates, and pay bills are all basic useful features. It can be a great way to ensure you use your credit card responsibly.

The main benefit of setting up autopayments is never missing a bill. Life is busy, and it’s easy to miss an ‘upcoming payment’ notification. With autopayments, your credit card will always be paid on time and at the right amount.

Be aware of your cash flow and what’s going in and out of the account you’ve chosen as the payment method. Give it a day or two on either side of the due date in case of processing delays.

The second major reason to set up autopay for your credit card is to protect your credit score. Missed payments on bills and outstanding debt can damage your credit score.

You’ll receive messages for upcoming payments, both within your online banking and via email. Keep an eye out for those notifications, so you can double check your balance before the payment processes. It’s also helpful not to drop below a certain balance in your account to avoid issues if multiple payments come out simultaneously.

» MORE: Pros and cons of using credit cards

How much can you pay?

You can set up automatic credit card payments and choose to pay:

The required minimum payment.
The full balance (to avoid interest charges).
A set monthly amount (for example, $200).

Westpac also offers the option to set the payment as a percentage of the closing balance if that better suits your budgeting.

Using your credit card to automatically pay bills

Most banks provide an easy way to set up automatic credit card payments for bills, either through the dedicated app or desktop online banking. Some lenders, however, require you to complete a direct debit approval form. It’s the same process if you need to make changes or cancel the Autopay.

The Big 4

CommBank

Log into the CommBank app.
Under View accounts, pick the credit card.
Click Manage, then Set Up AutoPay
Enter your PIN.
Select Autopay type and confirm.

Westpac

Sign in to Westpac Online Banking.
Go to Services & Preferences.
Select Services, then Card Services.
Click Manage Card Autopay and choose Pay From account.

NAB

Log into the NAB App.
Open Cards and choose the credit card.
Under Repayment Details, click Manage Automatic Payments.
Complete details and check if NAB Card Autopay is showing up.

ANZ

ANZ refers to automatic payments on credit cards as CardPay Direct. Consumers need to fill in a form and send it (by email or physical mail) to ANZ.

Popular alternatives

Macquarie Bank

To set up Autopay for a credit card, customers must complete a Direct Debit Request form. Macquarie Bank will inform customers once the direct debit has been set up. Until then, they recommend that you continue to make manual payments.

All changes to the Autopay schedule or setup must be made the same way, through the Direct Debit Request form.

Suncorp

Complete the Direct Debit form and return it to Suncorp. The quickest way is through Suncorp Internet Banking. Go to Credit Card Services and Document Upload. Follow the prompts.

Tips for automating credit card payments

Check your bank’s Autopay terms and conditions, fees and processing times.
Request reminder notifications if they don’t come through automatically.
For the first few cycles, put a reminder in your phone to check your bill and payment account before the Autopay due date.
Don’t let your payment account drop below a certain amount. If you want to avoid interest, your funds should cover the total credit card bill each month.
Try the different Autopay setup types to find the best structure for you — partial payment, full balance, a set amount or percentage.

If used correctly, credit card autopayments can help empower your finances. Just make sure you prioritise paying off your credit card, not just the monthly bill. Paying on time is important, but paying down credit card debt is the ultimate goal.

It’s easy — just log into your online banking, find the respective card and activate Autopay. Look for the prompt ‘Set up Autopay’ or ‘Card Autopay.’ Select the account you want to pay it from each month.

You can change or cancel Autopay by following the same prompts. Simply click ‘Cancel Card Autopay’ or edit it. In the Westpac login, for example, you can choose the minimum monthly payment, the full balance, a fixed dollar amount or fixed percentage.

DIVE EVEN DEEPER

How To Read Your Credit Card Statement

Regularly checking your credit card statement is an important way to empower yourself financially and stay on top of your debts.

Amanda Smith

How To Apply For A Credit Card In 5 Steps

Understand your credit score, debt and income, and apply for a card that fits your profile. Make your credit card application a no-brainer for the banks.

Amanda Smith

Georgia Rose