Subscription services for everything from television streaming channels and food to books and pet supplies (and so much more) have gained popularity in recent years. When the pandemic began in 2020, people all over the world were stuck at home and limited in their ability to travel. Without many options for how to occupy their time, many people signed up for digital entertainment services and regular subscription boxes.
According to a 2021 Washington Post article, the typical U.S. consumer has two to three subscriptions, and, with the “subscription economy” expected to grow even more by 2025, those averages are likely to increase exponentially.
Unlike traditional bills where the consumer is sent an invoice and expected to pay, a subscription service automatically takes recurring payments from a credit or debit card on file. It’s usually easy to set up online or in-app using your card number.
While deciding which option to use is a matter of personal preference, it should be noted that by using your debit card, you can have regular payments withdrawn directly from your checking account, which allows you to avoid credit card interest.
If you’re wary of entering your debit or credit card information online, consider utilizing a digital wallet app like Apple Pay, Samsung Pay, or Google Pay.
Digital Wallets securely store your payment information and passwords and allow you to complete purchases in-store, online, or in-app quickly and easily with just your phone. Because most digital wallets encrypt your account information, the number that is transmitted to a merchant during checkout is not your actual account number. Digital wallets generate encrypted account numbers for a single use, so each transaction will have a unique account number, which safeguards your information.
Regardless of which payment option you choose, it’s always important to check your monthly statement to ensure that the service was billed correctly.
LUSO Federal Credit Union is a not-for-profit, member-owned financial institution that strives to provide customers and members with the best financial services and products. Our team proudly meets the financial needs of our members by helping them understand their financial situation, manage their income, pay off their debts, increase their chances of getting loans, and helping them build good habits for saving money. Our services and rates are available in Wilbraham and Ludlow, Massachusetts. To learn more about our products and services, contact our Ludlow or Wilbraham branch at (844) LUSO-FCU.
