What Is Online Bill Payment?

What Is Online Bill Payment?

What Is Online Bill Payment?

Online bill payment uses the electronic transfer of funds to pay bills without having to write a check or mail a voucher. Companies may make online payment options available to their customers. Alternatively, a bank or another third party may be set up to pay a variety of bills.

Online bill payment is often more convenient and cheaper than traditional means. The customer doesn't have to buy stamps and checks or worry about the payment getting lost in the mail. The vendor doesn't have to hire people to open the mail, fill out deposit forms and take the paper checks to the bank. Fewer hands touch the paperwork, decreasing the chances of identity theft. Automated payments that require no subsequent user action may be set up for recurring expenses.