Online Bill Payment: Why they are Important and How do they Work?
Many banks and financial institutions now provide online bill payment services, which make it simpler to keep track of your invoices and pay them on time. Online bill payment can save time and prevent late fees if you manage to pay your rent, cable and electricity bills, credit card bills, and other obligations. You can now handle your payments to different businesses online, all in one spot.
What is Online Bill Payment?
Online bill payment is an electronic payment service that numerous banks, credit unions, and bill-pay companies provide. Users can pay bills on a one-time or recurring bill basis through a website or app. Customers may also schedule future payments. In addition, customers can programme automatic payments to be made each month for recurring expenses (or however frequently the bill is charged). The amount of items that can be enrolled in online bill pay is often not restricted, so credit card bills, rent payments, and utility bills can all be viewed and paid in one location.
Online bill-paying systems typically operate by withdrawing money from a linked checking account. Some banks designate the firm or person receiving the bill payment as the “pay to” account, while the account used to pay the bill is known as the “pay from” account.
Online bill payment is more environmentally friendly than paper bill payment since it eliminates the need to print statements. Additionally, it can make it easier for customers to manage their accounts and eliminate the risk of a paper statement being misplaced or carelessly thrown away.
Setting up Online Bill Payment
You must first sign up for internet banking with a financial institution before setting up online bill pay. There is usually a bill-pay tab on the online account page, but using the service may need to complete enrollment. Then, you can set up individual billers on the bill-pay page. To set up online bill pay and link it to your account, you’ll need a copy of each bill you wish to pay and the bill’s name and address.
Select whether you want the bill to be a one-time or regular payment after the biller has been enrolled. If you plan to schedule payments in the future, be sure to monitor your checking account balance to prevent an account overdraft.
Many banks allow clients to set up email or text notifications for when a new online bill arrives or when the account is at risk of overdraft to assist them in staying on top of their account balance.
Purpose of Bill Payment Apps
Business owners, contractors, and people who wish to transmit money from one person to another might benefit from bill payment apps. You can make payments directly from your smartphone using bill payment apps. You don’t even need your debit or credit card to make purchases through your app. With the app’s help, you can avoid using a bank and use additional features like timers for tracking work and business invoicing.
Advantages of Online Bill Payment
Apart from being easy, there are many other benefits of online bill payments:
- Every bill is in one location:
From the bank website or bill-pay app, you may simply access any current or previous bill and your payment history.
- Automated payments are possible:
Making payments automatically reduces the likelihood that you may forget to pay a bill. It is automatically deducted from your account on the due date.
- Environmentally friendly:
Less paper waste results from the elimination of paper statements.
- Online payments for bills are safe:
The risk of a check being stolen or lost in the mail exists when mailing checks. Likewise, online bank accounts have safeguards to protect money transfers, even if there is still a risk of cybercrime.
Sending cheques through the mail is a time-consuming and unsustainable alternative to online bill payment. It is simpler to remember when payments are due because both upcoming payments and payment history are accessible in one location.
If your account doesn’t have enough money to cover an automated payment, there is a risk of overdrawing it; however, this may be easily avoided by regularly monitoring the amount or enrolling in overdraft warnings. In addition, online bill pay can make handling your bills more convenient and secure if you avoid overdrafts and routinely review your statements to check for fraudulent charges.
With the Bajaj finserv app, you can easily keep track of due dates and organise your payments with online bill payments. It also makes it easier for you to keep track of where your money is going, allowing you to make sure you have enough on hand to cover each payment. You receive and pay all of your bills through your bank; they are all collected in one list. Download the app from Google Play store or App store to enjoy its benefits.