Forum Discussion
what's up with T-mobile removing autopay discount for credit cards?
I just literally signed up for a new plan - debit cards have fees for providers too - accessing my bank account isn’t a good approach from a security perspective (noting that T-mobile has been hacked...
That was announced months ago. It is because credit card companies charge a service charge that is based on the percentage of every transaction, which eats into T-Mobile's revenue. Removing the auto pay discount for credit cards negates that.
BlueSkies wrote:I was happy since I changed to T-Mobile... Until Now. It's just common sense to NOT use your debit card for automated payments to prevent security issues AND a credit card gives me flexibility since my balance can vary a bit each month. I never thought about leaving till this change. Does anyone know if Mint requires a debit card or bank account?
In the meantime, here's a hint I use. I opened a secondary checking account when I was in my 20's. I only use it to pay bills through the bank's online payment service or automated bill payments where I didn't have much choice. I do not have a debit card linked to it (yeah, the banker looked at me funny until I explained what I was doing) so there's no risk of a stolen debit card emptying the account. Each pay period, I move the money I need over for bills to it. Other than a minimum I keep in there to prevent any fees, that's it.
Either approach poses risks but I've found the debit card to be less risky in my case. In the case of auto paying by giving out your bank account info and the bank routing number you might notice that's all the information required to pay via ACH anywhere online - if the info is released into the wild it becomes just as much a security issue. In fact those advocating paying by check are exposing their bank account and routing information in one of the most insecure ways - right at the bottom of the check in plain sight of any bad actor.
In my case, the debit card for the bank is issued by Visa and carries the same fraud protection as any credit card does. At the same time there are a host of card controls that I have control over not to mention real time alerts. With a simple phone call or online I can shut that card down immediately and stop any fraudulent debit before it hits at the close of business. At the same time you want to turn overdraft protection off and yes I keep only a minimum balance in that secondary account at any time. In my case the debit card is ust common sense due to the extended card controls I can utilize vs automatic payments from the bank account itself. Outside of alerts, the bank account itself has no extended controls.
The approach works but only if you actively monitor alerts that you might receive. Which is better for you depends on your bank account and debit card terms. Even with a credit card promptly disputing fraudulent charges is necessary these days. Everybody's circumstances will differ. The question is what are you going to do to minimize damages when the stuff inevitably hits the fan regardless of whether it's TMO or someone else.
Credit card rewards and benefits are a different issue, but my homeowners insurance provides electronic device protection far beyond just cellphones.
Not defending TMO , just offering some alternative approaches.
