My kid is joining Karate Club and they want payment in the form of auto withdrawal from a bank account. I asked if they accept check or cash and they said no. They use some third party service to perform the transaction from the bank account. The karate program is 1 year long but they charge month to month.
I am not comfortable giving my bank information to them or to anyone. So I am thinking what if I create a separate bank account with only enough funds to cover karate expenses month to month. This means they won't be able to charge every month if my kid decides that he/she has lost interest.
What do you think?
What happens if they try to charge the new account even after I cancel the membership and the account does not have any funds?