Online bill payment can save you time, money and prevent errors that arise due to manual paper work. Paying your bills online can also help you manage your finances effectively by keeping a record of all your transactions and expenses. You can cut unnecessary expenses analyzing the previous online bill payments. Isn’t it amazing?
Sometimes Online Bill Payment are also known as Electronic Bill Payment but electronic bill payment model has online, mobile and telephone banking system as well.
There are two types of online bill payment services such as the ones that your bank offers and others that service providers offer directly such as phone companies, mortgage companies and utility providers.
Under the bank’s system the financial institution sends money to the ones whom you owe money by printing and mailing checks.
But in case if a recipient that is already set up within the bank’s system then the bank transfers the money electronically without issuing physical checks.
Setting up the Online Bill Payment with your Bank
Under the bank system the financial institution sends money to the ones whom you owe money by printing and mailing checks.
But in case if a recipient that is already set up within the bank’s system then the bank transfers the money electronically without issuing physical checks.
In order to set up an online bill payment system with your bank you’ll need a copy of a bill issued to you by a service provider.
You then access your bank’s website or payments portal, click ‘new payee’ and type in the name of the recipient or in this case a service provider whom you owe money.
Then you have to input your address and your account number along with any other information which is required.
The entire online bill payment cycle becomes automated thereafter, each time you want to make a payment, you simply enter the amount of the bill and the bank’s system does the rest by transferring money from your bank account.
You should always double check with each payee to ensure that they have unique online payment instructions or requirements.
Setting up Online Bill Payment directly with a Service Provider
In order to set up online bill payment directly with a service provider, you need to provide a voided check and an authorization form to your service provider.
Then you need to provide information related to your bank account through which you wish to make payments such as your account number and any routing numbers associated with the checking account.
As soon as everything has been setup properly and running, payment goes directly to the service provider.
Automatic Online Bill Payments are convenient for everyone
If you want to get rid of looking into your bill payments and sick of remembering bill payment dates then automating online bill payments will let you facilitate recurring payments on specified dates. E.g. your online bill payment service can pay your monthly phone bills, utility bills or your quarterly insurance payments.
You also have the option to authorize the service providers to pull money from your account for one-off expenditures without you getting involved.
In such a case the service provider directly asks the online bill payments service for payment as needed and the payment is made without your involvement.
But remember only authorize such payments when you are 100% sure that you will have enough funds available in your account at all times to cover the payments.
Online bill payments have become much safer, convenient and easy to use with almost every bank, telecom operator, mobile wallet and utility service providers offering online payment options.
Payment systems are secure and encrypted so you don’t need to worry about your financial or banking information, next time you want to facilitate online bill payment.
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