Advantages Of Paying Bills Online

Advantages Of Paying Bills Online

Advantages Of Paying Bills Online - How To Pay Your Bills OnlineElectronic bill payment is fast emerging as the preferred mode of payment amongst internet aware customers. It is a convenient and secure alternative which saves our times and efforts. It is an effective technique for streamlining our expenses.

Why switch to this option?

All service providers such as electricity, telephone, and gas connection, broadband services to insurance premiums, credit cards, college fees, and university fees have the online payment facility provided for customers. We generally have a planned budget for utility bill payments each month, but very often we still end up missing the bill deadline and have to incur an unnecessary late payment fees.

This happens because we simply forget to pay the bill, or the queue at the counters is so long that we simply do not have the time to pay it then or the bill just gets lost in the huge pile of mail at home. There could be myriad such possibilities, but the end result is we end up paying a penalty to the service provider for no good reason. Also late payments are nowadays being linked to credit ratings by agencies, so a simple late fee on the electricity bill may lead to a nasty surprise in your credit report.

Sometimes we pay the bill on line but still the cheque does not get cleared on time due to delays beyond our control and we end up suffering. Another common problem is that when we use drop boxed to put in cheques, the drop box may not be cleared on time, again leading to delays. Electronic bill payment is a good way of keeping track of such payments from the comfort of our homes.

Features

When we sign up for the electronic payment option, we get relief from standing in long queues at the respective collection centers. That translates to lots of saving of time and travel effort and can be quite a relief in our busy schedules. We can opt to continue receiving the hard copy of the bill as per our preference, but we will get SMS or email alerts about a bill when it arrives and before it is overdue. Once we pay the bill, a payment notification is received.

It gives you the freedom to pay the bill from absolutely anywhere, so the next time you need to go abroad for a 3 months assignment you do not have to depend on your friendly neighbor to do you a favor. You can simply pay the bill online from any place once you receive the alert. Also you can pay the bill at a time convenient to you, you don’t have to spend time standing in queues in office hours. You can do the online payment from the comfort of your home or office either in the day or night.

You need a onetime registration of the payment that you need to make with the bill payment service, you will need to provide your unique customer id. number in the sign-up process. Once it is done, you can start making the bill payments. You can either pay using the net banking option or using your credit or credit card or you can set up an ECS instruction to your bank for the payment.

All the three options work in highly secure modes and you can choose the option which is most convenient to you. You will get a summary of the payments made, generally the details of the of the last 6 or 12 months are archived in the bill payment application, so anytime you need to check something you can easily refer to the payment history. The online payment applications are generally easy to setup and use, so anybody who is fairly conversant with computers and internet can use this facility.

Using electronic payment facility is very convenient and intuitive for the customer. In most cases, you only need to enter your account information once and provide a user name and password for authentication. The information is stored in the application server and whenever you visit the web site, you simply log in with the user name and password.

The transaction can be completed with the simple click of a mouse. For banks and businesses it works out cheaper than the conventional payment mode because the manual intervention in the process in reduced and they spend less on paper work.

Electronic bill payments are useful not only for personal users, but business users can also capitalize on them. The banking needs of businesses are slightly different from those of individual users. Most of the vendors who are involved in businesses will be outside the scope of service providers listed by banks, so the banks online payment utility will not be of much use here.

Businesses generally have a process which requires an invoice to be raised, reviewed and finally approved for payment. Banks will not have any automated workflow offering for such payments, so there are third party solutions which make it possible to pay external vendors through a payment mode of your choice. Such systems can be configured and integrated with the business’s accounting application for seamless processing.

Initially when these services were introduced, there was a lot of apprehension among the public about the usability and the security of the process. But with time, people have adapted it well and now realize the convenience offered. With new advances in technology many mobile phone service providers are also collaboration with banks to provide the facility of payment by SMS.

So now you have the convenience of making the payment even when you do not have access to the computer or laptop. Also as volumes increase, such services can offer more tangible benefits to customers such as a onetime discount, a certain % of cash-back and reward points when you opt for an e-bill instead of the printed version.

From the service provider’s perspective, he is paid faster. There is increased accuracy, there is no possibility of cheques bouncing due to inadequate balances or signature mismatch. As the whole workflow is automated, tracking any claims is quite simple. The staff can be utilized in a better way as they are freed from the time spent in manually taking care of bill payments. This is a key contributor in improving customer service and eventually keeping the customer happy.

Photo Credit: Consumersearch.com

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