Autopay.

In plain English

Autopay is a standing instruction that pays a recurring bill automatically, from a bank account or card, on or before its due date. On credit cards you usually choose to auto-pay the minimum, the statement balance, or a fixed amount; setting it to the full statement balance is the simplest way to never pay interest or a late fee. The risk is an overdraft or returned payment if the account lacks funds, so autopay works best paired with a balance buffer and an occasional check that the charges are correct.

01Why it matters

Autopay prevents the late fees and credit-score damage a missed payment causes, but only if the account has enough to cover it, so it is a safeguard that still needs monitoring.

02The math, step by step

You set autopay for the full statement balance on your card. Each month it pays in full on the due date, so you never owe interest or a late fee, as long as your checking account can cover the payment.

03What this is NOT

04Receipts

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