How Bank of America Auto Payment Works and What You Control
What Bank of America Auto Payment Does
Bank of America Auto Payment is an automatic transfer system that pulls money from your Bank of America checking or savings account on a schedule you set, to pay your car loan or lease. The payment goes directly to your lender—which may or may not be Bank of America itself. You decide the amount, the date, and whether to keep it running or stop it at any time.
The system is built into your Bank of America online banking or mobile app. Once you set it up, the bank handles the transfer without you having to log in each month. If your lender is Bank of America, the money moves between accounts within the bank. If your lender is another company, Bank of America sends the payment through the banking system (usually via ACH, which stands for Automated Clearing House—a network that moves money between banks).
Auto Payment is optional. You can pay by check, by phone, through your lender's website, or in person at a branch. But automatic payments reduce the chance you'll miss a due date, which protects your credit score and keeps you from owing late fees.
Key Takeaways
- Bank of America Auto Payment pulls money from your account on a date you choose and sends it to your lender, whether that lender is Bank of America or another company.
- You control the amount and can change or cancel the payment at any time through your Bank of America online banking or app.
- Payments usually take one to two business days to reach your lender if they are at another bank, so set the payment date a few days before your loan due date.
- If your account does not have enough money on the payment date, the transfer will fail and you may owe a late fee to your lender and an overdraft fee to Bank of America.
- You can set up Auto Payment through Bank of America's website, mobile app, or by calling customer service at the number on the back of your debit card.
How to Set Up Auto Payment
Log into your Bank of America online banking account or open the mobile app. Go to the "Transfers" or "Bill Pay" section—the exact name varies by which version of the app or website you use. Look for an option to add a new payee or set up a recurring payment.
Enter your lender's name and account number. If your lender is Bank of America, you can select it from a dropdown list. If it is another company, you will type the name and the bank routing number (which you can find on your loan documents or by calling your lender). Then choose the amount you want to pay, the date you want it to go out each month, and whether it should repeat every month or just once.
Review the details and confirm. Bank of America will show you a summary of the payment before it goes through. The first payment usually takes one to two business days to reach your lender. After that, it will go out on the same date each month until you stop it.
If you prefer not to use online banking, call Bank of America customer service at the number on the back of your debit card. A representative can set up the payment over the phone and will read back the details to confirm.
Timing: When Your Payment Reaches Your Lender
If your lender is Bank of America, the payment arrives the same day or the next business day. If your lender is another bank or company, it usually takes one to two business days for the money to move through the ACH network and land in your lender's account.
Your loan due date is the deadline your lender sets. To be safe, schedule your Bank of America Auto Payment to go out at least two to three business days before your due date. That way, even if there is a delay in the banking system, your lender will receive the money on time and you will not owe a late fee.
If you set the payment date too close to the due date and it arrives late, your lender may charge a late fee. Late payments also hurt your credit score. Check your loan documents or call your lender to confirm the exact due date, then count backward to pick a safe payment date.
What Happens If Your Account Does Not Have Enough Money
If your Bank of America account does not have enough money on the day the Auto Payment is scheduled to go out, the transfer will fail. Your lender will not receive the payment, and you will be late. Your lender may then charge a late fee and report the missed payment to credit bureaus, which damages your credit score.
Bank of America may also charge you an overdraft fee for trying to send money you did not have. Overdraft fees vary but typically range from $25 to $35 per transaction. Some Bank of America accounts include overdraft protection, which means the bank will cover the payment from a linked savings account or line of credit, but you will still owe interest or a fee for using that protection.
To avoid this, make sure your checking account has enough money before the payment date. If you are unsure whether you will have the funds, you can pause or cancel the Auto Payment, make a manual payment when you have the money, and restart Auto Payment the following month.
Changing or Stopping Your Auto Payment
You can change the amount, the date, or stop the payment entirely at any time through your Bank of America online banking or app. Go to the same "Transfers" or "Bill Pay" section where you set it up, find the payment in your list of recurring transfers, and select "Edit" or "Cancel."
Changes usually take effect within one business day. If you cancel a payment that is already scheduled to go out today or tomorrow, call Bank of America customer service right away to make sure it does not process. Once a payment has left your account, you cannot stop it through the app—you would have to contact your lender to ask them to reverse it, which they may or may not do.
If you stop Auto Payment, you are responsible for making sure your loan gets paid on time by another method. Mark your due date on a calendar or set a phone reminder so you do not forget.
Auto Payment and Your Credit Score
On-time payments are the single largest factor in your credit score. When you use Auto Payment and the money reaches your lender before the due date, your lender reports the payment as on-time to credit bureaus. Over months and years, a record of on-time payments raises your credit score.
If Auto Payment fails because your account ran out of money, or if you cancel it and forget to pay manually, your lender will report you as late. A single late payment can lower your credit score by 50 to 100 points or more, depending on how late you are and your current score. Late payments stay on your credit report for seven years.
Auto Payment removes the human error from the process—you do not have to remember to write a check or log in to pay. That reliability is one of the main reasons lenders encourage it and sometimes offer a small interest rate discount if you sign up.
Frequently Asked Questions
Can I set up Auto Payment if my lender is not Bank of America?
Yes. Bank of America can send payments to any lender through the ACH network. You will need your lender's name, routing number, and your loan account number. The payment will take one to two business days to arrive instead of being instant, so schedule it a few days before your due date.
What if I want to pay more than the minimum each month?
You can set your Auto Payment amount to anything you want—the minimum, more than the minimum, or the full balance. If you want to pay extra one month and the regular amount the next month, you can edit the payment amount in your Bank of America app before each payment goes out, or set up one recurring payment for the regular amount and make extra payments manually when you have the money.
Will Auto Payment affect my ability to dispute a charge?
No. Auto Payment is a transfer from your account to your lender, not a credit card charge. If there is a problem with your loan or a billing error, you can still contact your lender to dispute it. The dispute process is separate from the payment method.
Can Bank of America Auto Payment be hacked or stolen?
Bank of America Auto Payment uses the same encryption and security as the rest of your online banking. If someone gains access to your Bank of America login, they could change your Auto Payment settings. Protect your password, use two-factor authentication if Bank of America offers it, and check your Auto Payment settings regularly to make sure they have not been changed without your permission.
What if I pay off my loan early?
Once you pay off the loan, cancel your Auto Payment through your Bank of America app or by calling customer service. If you forget to cancel it, Bank of America will try to send a payment to your lender, but your lender will reject it because the loan is closed. You will not owe anything, but you may have to contact your lender to confirm the payment was rejected and get a refund.