Banks, credit card companies, and utility providers have automated bill payment services that let people set up automatic bill payments from their bank account, credit card, or other financial accounts. In order to make sure your bills are paid on time, automatic bill payment gives a service provider or bank permission to take money directly from your bank account or credit card on a scheduled basis in order to pay your ongoing expenses. There are several benefits to this.
Time-Saving and Convenient
With bill pay you don't have to worry about mailing in a check every month which has the potential to get lost in the mail or be late. You can schedule the bill pay so the payment goes out at a specific time each month so you don't have to worry about remembering the due date.
Avoid Late Fees and Penalties
You should be able to avoid late fees by paying your bills on time and avoiding any penalties. It might also save you money in interest charges. Late payments can negatively affect your credit score which is something you really want to avoid.
Better Money Management
When you use bill pay you may have more control over your budget and have a better idea of where your money is going. This will help you predict what your monthly expenses are going to be so you can plan for it.
Security and Reliability
When you use bill pay, there should be security measures online to help keep your money safe when you make payments. Hopefully, you will have identity theft risk than if you mailed out your bills and had to rely on the several steps it takes to get your money to the appropriate place.
Here is a quick how-to for automated bill payments:
Get together the account numbers, payment amounts, and contact information for the companies that are billing you (i.e. credit card companies and utility companies).
Enter your bank's login information using their mobile app or online banking site.
Find the "Bill Pay" area on their site (it may be found under payments or transfers).
Add a biller and then enter the account number and billing address for each biller, along with any other necessary data.
Set up your payment information by entering the start date, amount, and frequency of payments (i.e. monthly) for every bill.
Make sure all your information is correct and then confirm.
Check your payments regularly to make sure they are processed correctly and that you have enough in your bank account to pay them.
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