Online bill pay is on the rise do to a number of factors ranging from living a greener lifestyle to helping stretch our finances. Online bill pay is part of our electronic-oriented lifestyle, which all fits in with pointing towards a paperless economy. As its popularity increases, financial institutions and businesses are implementing more stringent protocol to protect all parties involved.
Security
Financial institutions and businesses offering online bill pay will conduct their business over securely-encrypted websites. According to cbsnews.com, this technology "scrambles data so it can't be read en route in cyberspace." Other online bill paying security includes requiring password usage and Personal Identification Numbers for identity purposes. This helps protect against identify theft. The software used for online bill pay requires a secure browser and up-to-date computers to protect one's security and privacy.
Check Status
According to Microsoft Money at msmoney.com, you can track the payment status of your bill throughout the month. You can find out if, and when, your check has been cashed by your recipient. If it has not been cashed within a few days, you can call the bill provider and follow-up. You can also review your accounts online, along with their balances. This can aid in your personal financial management and planning.
Convenience
Online bill paying allows you to sit at your home computer, in your pajamas, and pay bills. You do not have to get dressed and prepare for dealing with the public, will not have to make a trip to the post office, waste time standing in line or deal with traffic issues. Or, you can pay your bills from anywhere in the world, wherever you have Internet access cites msmoney.com. You can do your banking anytime of the day, whatever is convenient for you, not your bank. You do not have to stuff envelopes, order paper checks or write paper checks. Online bill paying can save you time, make your life easier and add convenience to your life.
Environmentally Friendly
Another advantage of online bill paying is the fact you will be helping the environment by lowering your usage of paper. Instead of using paper-based checks and envelopes, you will be using the paperless Internet. There will be no shredding of paper checks. You will be involved in electronic commerce. Reducing your paper checks and paper bills will reduce the amount of clutter you have in your home environment, also cites Reader's Digest. According to Reuters, "the average American household would save 6.6 pounds of paper a year, save 0.08 trees, and not produce 171 pounds of greenhouse gases - the equivalent of driving 169 miles."
Budget Oriented
Online bill paying allows you to save money on postage, envelopes and check printing expenses. Many banks offer no-fee online banking. It can also help you save on commuting expenses such as depreciation and operating costs of your car. Online bill paying can also save companies millions of dollars in check handling, late fee notices and administrative costs cites cbsnews.com.
Payment Scheduling
Online bill paying allows you to schedule your payment when due, or at any date you choose. This helps to avoid any late fees or payments which may affect your credit rating. Scheduling payments beforehand aids travelers who may otherwise forget about bill due dates.
