Everything is done online now, right? Many businesses offer online payments for their customers. A customer can log into the business’s website and pay their bills electronically in a secure portal.
For the past decade, many financial institutions have slowly begun to offer electronic bill payments or online bill pay. This feature allows customers to transfer money from their checking, savings or credit card account to a vendor such as a public utility, department store or an individual.
There are many benefits to using online bill pay.
- It’s convenient. It offers one centralized location to make payments versus logging into multiple sites with multiple accounts (and multiple passwords). Statements can be delivered electronically or on paper, but online bill pay options are universal.
- It saves time. A short amount of time should be dedicated to setting up the reoccurring transactions, however after that, automation takes over and there is no need to log in every month.
- It’s secure. Financials have secure systems with required usernames and passwords. The level of security and encryption set up by the financial, maintains the integrity of a members’ accounts and transactions.
- It makes money management easy. Mobile applications allow on-the-go money management. Set up alerts, make transfers and track payments.
On the other hand, it requires a higher level of attentiveness to your money management.
- Accurately track your transactions. It’s easy to forget or lose track of an account status. Make sure credit card charges are correct.
- Balance your ledger or check book. Balancing your accounts is still a good habit to practice. Electronic errors still could occur, although not often.
- The risk of over drawing an account is higher. Monitor your account for balance changes to avoid a negative balance. Late fees can add up quickly!
Online bill pay is not for everyone, but if you are looking for convenience and access with cutting edge technology, online bill pay may be a great option for you!
