Paying Bills Online - Your Options

Paying Bills Online - Your Options

Lots of people have stopped paying their bills using checks, envelopes and postage; instead, they like to utilize the web to create payments. When bill paying online, you've got a few options, including bank-generated payments and vendor-generated payments. Pay Bill Online

Bank Generated Payments

Many banks offer bill paying services at no cost. You enter the vendor's name, address plus an amount in the bank's website and a check is disseminated on the specified date. On a monthly basis you have to join the bank site and alter the total amount to become paid. It is relatively simple and simple. This setup is fantastic for those who travel a great deal and want to have complete control over bill payments. Based on your bank, you are able to sign up for checks to be issued for certain amounts each month, such as for rent or mortgage expenses. If you use this technique, payments go out without you being forced to log in and authorize them individually. Make sure you schedule payments in advance of work deadlines, and beware that typically payments are not received by vendors and are returned for the bank. Test the device by sending payments many days prior to being due, so that should they don't go through, you don' t use the bank service. Usually, if the first bank payment undergoes, chances for problems in the future are slim. Pay Bill Online

Vendor Generated Payments

This type of online payment has been in existence ahead of the Internet became very popular. The idea would be to allow the vendor to debit the payment from your bank checking account with a certain date every month. Instead of the bank making payments, the seller pays itself with your account. You are able to allow individual payments to be obtained from your bank, or you will head to "auto-pay," when payments are debited from your account each month. You don't have to worry about payments -- when you have an account balance inside your account, payments are performed behind the scenes for you. Lots of people use this option with creditors to find the minimum amount paid each month. Auto-pay can be a great option in the event you travel a great deal, or else you want avoid late charges. However, once you're on auto-pay and you locate an error within the bill, the payment may come from the account, and it will take time to obtain the issue resolved.

Another problem with auto-pay is you cannot stop your bank from accepting them. As an example, should you signed up for gym memberships or loan instalments using auto-pay, these businesses can debit your bank account even after you cancel your membership or pay or loan completely. Your bank could give you credit, nevertheless the process can be a hassle. Often banks advise people to close accounts in order to avoid auto-debits. Be alert for almost any non-authorized transactions. Based on the U.S. Comptroller of Currency Office, "You must report any unauthorized electronic transaction that appears in your account statement within 60 calendar days of the bank's transmission of the statement to avoid liability for just about any subsequent transfers. Therefore, you should review your account statement upon receipt."

Business Considerations

If you are planning using online payments for the business, make sure to document the situation -- a bookkeeper may pay a bill having a check, while the same bill pays automatically by a vendor. Accounting staff must be mindful of all Internet payment types to avoid double paying or paying late. Another concern is to ensure that internal controls exist to stop misuse and errors in online payment processing. For instance, an accountant los angeles may create auto-pay in a bank to pay for a fictitious firm and no-one knows about this. To avert this problem, ensure that someone outside accounting, like the company owner or general manager logs on your bottom line website and review auto-payments and debits towards the account at least one time monthly. Some banks provide the choice of emails be shipped to business owners or someone outside accounting use a form of internal control to the process.