Electronic bill payment
Electronic bill payment is one of the activities falling under the scope of electronic banking. It involves settling bills with the help of electronic equipment or with the use of the Internet. For instance, it may be possible to use one’s ATM card and choose the bills payment option at an automated teller machine. One can then choose from a list of options or specific bills to be paid. Although this still requires the customer to make an effort to find a teller machine, it does provide the convenience of facilitating transactions no matter what time of day, and even on weekends.
Another method of electronic bill payment requires the customer to enroll certain accounts in the arrangement. After taking the necessary steps, the customer can then choose to pay bills online. In many cases, it is possible to set up the account such that bills payment no longer has to be triggered by the individual. The amount due can simply be deducted from the customer’s bank account and transferred to the payee on a set day for each month. This is especially useful for people who juggle busy schedules and may easily forget to pay their bills on time. In case such transactions are not automatically processed, it may still be possible for an alert to be sent to the account holder to remind him to settle his obligations.
Electronic bill payment is often free. However, in certain cases, banks or other institutions may require a small service fee to facilitate the transaction.