Electronic bill paying is a great banking service because it benefits everybody. Banks do it because it's cheaper for them with no paper to handle. Payees like it because it is faster and cheaper to handle. Best of all, I love it because it's better for the payer. Here are the better-for-payer reasons:
Saves money. I save a $0.39 stamp, an envelope and a check. It may seem small, but combine the 10+ bills we pay per month (on average) and it adds up - $3.90 a month and about $50 per year. That doesn't include envelopes, checks and other miscellaneous costs.
Saves time. After investing the time to set up the service, paying a bill only involves a few clicks and typing in the amount and payment date. Compare this to writing out each check, stuffing the elements in an envelope and taking them to the nearest mailbox.
No stress about late payments. Most bill payment services will guarantee payment within 3 days of submission. In my experience, should the bill be late, the bill paying service will rectify the situation.
My bill paying service currently only does automatic payments for recurring payments of the same value, such as our mortgage. So we still have to physically enter the amount and date in our bill paying information. When we were in Japan, the bank would do automatic payments for utilities and credit cards, which had different payment values each month. I look forward to this type of service being provided in the future.
For more articles on The Practice of Personal Finance, check back every Wednesday for a new segment.
Photo Credit: morgueFile.com, Ronnie Bergeron
This is not financial advice. Please consult a professional advisor.
Copyright © 2007 Achievement Catalyst, LLC
Saves money. I save a $0.39 stamp, an envelope and a check. It may seem small, but combine the 10+ bills we pay per month (on average) and it adds up - $3.90 a month and about $50 per year. That doesn't include envelopes, checks and other miscellaneous costs.
Saves time. After investing the time to set up the service, paying a bill only involves a few clicks and typing in the amount and payment date. Compare this to writing out each check, stuffing the elements in an envelope and taking them to the nearest mailbox.
No stress about late payments. Most bill payment services will guarantee payment within 3 days of submission. In my experience, should the bill be late, the bill paying service will rectify the situation.
My bill paying service currently only does automatic payments for recurring payments of the same value, such as our mortgage. So we still have to physically enter the amount and date in our bill paying information. When we were in Japan, the bank would do automatic payments for utilities and credit cards, which had different payment values each month. I look forward to this type of service being provided in the future.
For more articles on The Practice of Personal Finance, check back every Wednesday for a new segment.
Photo Credit: morgueFile.com, Ronnie Bergeron
This is not financial advice. Please consult a professional advisor.
Copyright © 2007 Achievement Catalyst, LLC
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2 comments:
I use bill-pay all the time. Its great and I don't have to write out check anymore.
You lived in Japan for a while? That's cool. Working over there?
Savvy Steward,
Thanks for your comment. I fully agree with you about on-line bill paying.
My company transferred me to Japan for an assignment which lasted almost four years. It was a great experience professionally and personally.
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