Careful with Bank of America Auto-Pay, it is very misleading and can lead to interest charges

by jtmcginty​

I set up autopay around July of this year intending to pay the statement in full each month. I recently noticed a charge named ‘INTEREST CHARGED ON PURCHASES”, which I had no reason to suspect on my card. Luckily I still go in and pay additional amounts on the card every once in a while to keep my card usage low.

I just spent an hour on the phone with them trying to determine why I am being charged interest.

For their autopay system there are a few parameters:

Pay from: <Bank Account Here>

Pay: (Select one) <Amount Due, Minimum Amount Due, Account Balance, Fixed Amount>

Deliver By: (Select One) <Due Date, Before the Due Date, Earliest Delivery Date>

From what I’ve been told after speaking to both the person who received my call and a manager, “Amount Due” and “Minimum Amount Due” are the same. I was under the impression “Amount Due” would be the Full Amount on the Statement. Apparently “Account Balance” is the full amount on the statement, but not actually the full amount of your current balance.

So by paying the ‘Amount Due’ at the Earliest Delivery date, I apparently only made the minimum payments each month instead of the full amount due, causing interest to be charged. Luckily I barely use the card and interest amounts ended up minimal.

If you have a BoA CC, make sure payments are set to “Account Balance”, and not “Amount Due”!