Four Options For Paying Bills Electronically

More and more Americans are turning to the Internet to pay
their monthly bills. Whether it's through their bank's website,
a bill paying service, a vendor website, or direct debit, they
enjoy the convenience and speed of paying bills in this
fashion. Each method has advantages and disadvantages and one
method may not fit all needs.

Paying bills through a bank website allows you to set up payees
and schedule payments to be disbursed on a schedule you
determine. Many banks now offer this service free of charge.
Payment is sent either electronically or by paper check.
However, this service may not be suitable for people who prefer
to pay their bills very close to the due date as there is a lag
between the consumer setting up the payment and the bank
actually sending it. Different banks have different lag times,
but it's safe to count on 7-10 business days before your
payment is received.

Bill paying services offer similar service to banks, but
typically charge a monthly fee for their services. The benefit
of bill paying services is that often they can integrate with
personal financial management software and allow bill paying
directly from the application. These services will also have a
lag between the payment request and the actual payment.

Vendor websites that allow online payment are a good choice for
last-minute payments since they are typically credited either
immediately or the next day. Check the fine print on the vendor
website to be sure you understand when payment will be credited.
Paying all your bills this way can be a hassle since you have to
visit multiple sites and not all your creditors may be set up to
receive online payment.

Finally, for recurring bills with a fixed amount, you may want
to consider direct debit. Direct debit allows creditors access
to your bank account so that they can withdraw your payment
amount automatically each month. Generally, this method works
best for mortgage payments, car loan payments or other payments
with fixed amounts since variable amounts, like credit card
payments, might make it difficult to manage your account.

Whatever method or combination of methods you select, you still
need to keep careful tabs on your account to ensure that the
proper payment amounts were sent on time. Be sure to continue
to balance your checkbook each month in order to avoid
problems.

Article Source: http://www.articleszoom.com

About the Author :
Jonathon Hardcastle writes articles for ifinancecentral.com/ - In addition, Jonathon also writes articles for 4investing.net/ and thebusinessbuzz.net/

Please Rate this Article

Not yet Rated