How Bill Payments Online Work
The hassle of sitting down and writing out checks is a thing of the past for many of us. If you’re still not sure about setting up online bill pay because of security risks, consider that mailing a check is also a security risk. Once you mail out a payment, your signature and bank account number are exposed until the payment arrives.
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Simplify
You can cover everything, from rent to your credit card, with online bill payments through services like CellPay. You can make sure your prepaid phone from H2O pay bill gets covered early. These payments can be based on covering the invoice amount from a prepaid card.
Pay From Your Bank
For best control, you can sit down with your invoices and payments from each directly. Setting up your online bill pay with your bank should be fairly simple, especially if you set it up on the account where your checks are directly deposited. If your bank has to mail paper checks for some vendors, make sure you allow the time necessary to get the check printed and in the mail. If you’re not paying the same amount each month, this is the best way to make sure your payments are made on time.
With this service, you can create a hub and spoke bill paying system. You don’t need to go to your credit card website to make the payment. Your bank account should allow you to enter the
- vendor name
- vendor address
- vendor phone number
- account number
You should also be able to add a comment or nickname for the vendor to make it easier to track. From here, you just enter the amount due and click “pay”. The money will be deducted from your account and the payment scheduled for transmission, either electronic or paper.
Allow Service Providers to Pull From Your Bank
For many of us, there are payments due each month that don’t vary, such as
- housing
- utilities
- internet
In these cases, you can save yourself trouble and hassle by letting service providers pull directly from your account. For folks who are working to improve their credit rating, this is a great way to avoid “dings” and late fees. If you suffer a job loss or have a delayed deposit, make sure you cancel these automatic withdrawals to avoid overdraft fees.
Gain From Paying Your Debts
Another option is to submit your credit card to the vendor as a way to cover the debt. Make sure you use a card that offers cash back or points to a vendor that you use frequently. Once you’ve got your credit card tied to the account, you will still need to monitor the monthly invoices and carefully check your statements, but you can get something back for the debts you cover with this choice.
Paper checks are at risk of theft. They’re also at risk of damage; postage machines can tear up an envelope and make your payment undeliverable. Online bill pay can save you a lot of hassle.