For every one of us, there are several bills that are paid on a monthly basis. The list includes rent or mortgage, electricity, credit cards, cell phone, internet and cable, among others.
Most people pay an amount in double digits. It is natural that at times, one of these bills slips their mind so they have to pay the late payment fee. A 2016 survey by a financial firm reveals that more than 1/3 of customers or 35% of respondents paid late in the past year, and 65% were charged with a late fee.
Most banks and credit companies that offer online bill payment make it easier to manage and pay bills to avoid extra fees. Besides paying bills from the convenience of their computer at any time, people can save on stamp costs and the trouble of traveling all the way to a mailbox.
It is not something new to pay bills online since it is done by a vast majority of Americans. However, most of them do it with the use of different websites and providers. So, there is a possibility of missing a payment.
As an alternative, wouldn't it be better to receive and pay bills via the bank with just one list in one place? Think of how this could simplify matters.
How the System Works
This is just plain and simple. The individual logs in to his bank account, then goes to the online bill pay platform. He chooses the bill provider and keys in the account number corresponding to each bill, then authorizes his bank to send the payment for him.
The bank can send the payments electronically or by a paper check in order for the individual to pay bills online, even though the biller does not have such an arrangement. He may either select a one-time payment or arrange a recurring one. Usually, he can choose to pay the whole balance, the minimum due or just a certain amount.
Aside from paying companies like electricity or Internet providers online, the bank can also send payments to individuals - like, for example, a landlord, to eliminate the need for a checkbook.
Setting up
Thought the initial setup is not that fast, it can save time and problems later on. These are the things needed to be done:
Bring together all bills, account numbers and addresses to where payments will be mailed.
Key in the information of each company into the online bill play platform of the bank.
Choose the date when payment will be sent.
Choose between one-time payment or recurring.
Set reminders of each bill's due date.
Most service providers and sellers provide the option of getting an electronic bill. Whenever an e-bill is available, the bank will often alert the individual. He can then choose whether to let the statement be sent to his online bill pay center or inbox/mailbox. E-bills usually take effect in a number of billing cycles.
Reasons to Use it
Online bill payment helps people manage their bills and be reminded of due dates. It is easier for them to see the flow of their money, making sure that there are sufficient funds to cover every payment. This is difficult to do if paying through several websites.
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