Electronic bill payment is a service that enables you to set up an online payment option for bills. Transactions are simplified as It can be made via online bill pay directly from banks or service providers without a third party.
Various financial institutions offers online bill pay service to simplify and make easier to organize your bills and pay them when they’re due. Online bill pay can help to reduce costs of services as their won’t be much required to complete a payment. Services like jps Jamaica online bill payment, CIBC, rogers, spectrum, Verizon and online electricity bill payment can be done utilizing online bill pay which further reduces time and help you avoid late charges. How To Transfer Money From Amazon To Bank Account Easily
People have different reasons of using online bill payment, some use it to keep track of merchants website, service providers and payment information. However, direct payments to service providers can be replaced by paying right from your financial institutions
How does online bill payment works?
How online bill pay works is simple: to initiate electronic bill payment, log in to your bank account, scroll to its online bill pay feature and then choose the bill provider. If you are yet to set up the provider in your account before, add it by typing in the account number and billing address, then authorize your bank to send payments for you.
How to Set Up Bill Pay With a Service Provider
To setup payment solution with a service provider, you’ll have to present a voided check and an authorization form to give access to your bank account. Bank account information will be required such as your account number and any routing numbers associated with the checking account, either in the authorization form or separately. BEGINNERS GUIDE TO SELL ON AMAZON AS A NEWBIE
However, a debit card can be used instead of checking account. In some cases, bank information can be delivered online but you will surely verify your account either through OTP (One Time Password) or other means.
How to Choose Online Bill Payment Types
After a successful payment setup, your bank or service provider will give provide options of online bill pay to choose from.
- One-time payments: just like the name, its used once for a specific payment. Its best used for payments done once such as short-term rent, hiring of equipments or for services rendered when on a journey.
- Future payments: this online bill pay option enables you to schedule payments for a later date. This can very useful as it helps solve the problem of die-minute rush and late payments. Using this electronic bill pay option, you can pay for services when you have the money even if its not yet time but you have the money at hand and don’t want to use it for other purposes.
- Recurring payments: renewing your pay TV services, utility, insurance, internet plans and online electricity bill payment are good examples of recurring payments.
Using the automated one-time payments, some service payments can be automated. For instance, you automatically renew a fix payment for a specific service. Internet plans and insurance also can be paid without any part played by you. Cheap Wireless Internet Service Providers in United States
This simply means the service provider request for payment from the online bill-paying company. Thereby making payment without your involvement. However, ensure you have enough funds in your account if you you reoccurring payment type.
Some advantages of Online bill pay includes; it saves time, reduce paperwork, less stress, and generally make your payments easier. Although, it can cause extra charges if you set up withdrawals that exceed your balance. Therefore, confirm your account balance before setting up reoccurring bill pay. Thanks for reading.