What are the benefits of automatic billing?


Quick Answer

The benefits of automatic billing include convenience, rewards, an improved credit score and better security. Automatic billing is also better for the environment, because it eliminates the use of paper checks and bills.

Continue Reading

Full Answer

An automatic payment plan shifts the task of paying bills to the credit card company or bank. This ensures that bills are paid on time and makes it easier to track payments. This also leaves more time to attend to other important day-to-day tasks. Some credit card companies offer rewards for automatic billing, such as free travel or cash back, making it a good way to save money while paying bills. Depending on the service provider, the payments can amount to significant points or rewards at the end of each year.

Automatic billing usually means that bills are paid on time, reflecting positively on a person's credit score. Automatic billing also eliminates the need for bills to be mailed to the home or office. This is ideal for bills containing sensitive information, such as checking account or credit card numbers. Trusted billing companies also use high-tech security and encryption software to minimize the chances of identity theft. Automatic billing also removes the need for stamps, checks and envelopes, which saves money.

Learn more about Accounting

Related Questions