Auto Pay incentive programs on credit cards

I recently had an offer for up to $15 for enrolling in Auto Pay for a credit card. Clearly it wouldn’t be offered if not a good deal for the credit card company. So I tried to guess how they plan to recover the incentive cost: A bit could be recovered by not handling and processing paper checks, but that would seem to take forever. But I think the real payback comes when someone is unable to keep up with payments. Then the company is first in line to draft from the checking account as money appears.

I’m sure. But if you’re going to pay your bill anyway, you might as well take their $15.

Here is Clark’s take on it:

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