Online bill paying is a way to leverage the Internet to pay bills, usually through online banking. This service is offered free of charge by many banks. Those who charge a fee usually offer the service for a nominal fee. Many will find the convenience and money saved in postage worth any costs that may be incurred.
One of the keys to online bill paying is being able to set your payments as you want them. In some cases, the account holder may set a periodic payment, which is processed automatically each month. In other cases, this can be done manually. It all depends on the account holder’s individual needs.
In some situations, the amount may change every month, but the due date never changes, or at least does not change often. For example, a car payment is due, in the same amount each month. A power bill may be due to close to the same time each month, but the payment may be based on usage during the previous month. In such situations, online bill payroll systems may send a reminder to the account holder that will allow him or her to log in and put the relevant payment amount online before the payment is sent.
Most personal bankers will instruct new account holders in the online bill pay when opening a new account. In many cases, it simply involves logging into the bank’s online banking system and linking to the account. From there, all bills can be set up through a step-by-step process. Once completed, the account is ready for the online bill pay.
Paying electronically through an online bill payroll system offers a number of benefits over the traditional way of paying by mail. Most online systems are a form of paperless bill pay, which means there are no bills to lose, no addresses to keep track of, or dates to meet. It’s done over a digital medium. Thus, the benefits it provides are unique compared to the traditional bill paying methods.
Furthermore, the online bill pay often offers an account holder a better view of when a payment was processed, just in case there is any doubt. Compared to sending a check in the mail, this is a great advantage offered by the electronic system. No one claims when a check was sent, when it should have been received or processed. It’s all played for both parties by an impartial system.
While some people have security concerns about online bill pay, it should be noted that most online banking systems are very secure. It would be very unlikely that personal financial information could be taken by unauthorized persons through an online banking system, but not impossible. But sending checks in the mail has a number of inherent risks as well, including an account holder’s account and routing number changed hands several times.
- If a URL begins with https, it’s safe to share personal information.
- The online bill payment services offered by banks through their websites have been migrating to apps now available on mobile devices.
- Paying electronically through an online bill payroll system offers a number of benefits.
- Paying bills online saves time and postage, both of which are necessary when mailing a check.
- Many consumers have chosen to pay their bills online.