We all have bills to pay, but it's not always easy to pay all of them. Some companies charge processing fees when you use their online bill payment systems. When you pay extra fees like this, you waste money. One way to avoid additional fees when paying your bills is to use your bank's online bill pay tool. Many banks include this helpful feature on their websites and mobile apps. Here's what you need to know about using your bank's bill pay feature.
You can pay your bills through your bank
When you send bill payments out in the mail, you'll need to not only include a check for payment, but also cover the cost of a postage stamp. Those costs can add up if you regularly pay several bills by snail mail. But there are other ways to pay your bills for free.
One way is using the online bill payment feature provided by your bank. Many banks offer free bill payment tools to customers. By using this feature, you can save yourself money. This service provides a convenient way to schedule and stay on top of your bills.
If your bank offers bill payment tools, you may want to give it a try.
Here's what you'll need to do to pay a bill this way:
- Log in to your online bank account.
- Locate the bill payment tool.
- Add a new payee.
- Enter the details for the payee.
- Select the payment amount.
- Schedule your payment.
Once you schedule a payment, you're all set. Your bank will send the payment on your behalf and deduct money from your checking account on your chosen date to cover the cost.
This service offers a simple way to pay your bills electronically. If you regularly use your bank's mobile app or website, you may want to see if online bill pay features are available.
Five reasons to pay bills through your bank
Still not sure if your bank's bill payment solution is right for you?
Here are five reasons you may want to use this service:
- Avoid extra fees: Some companies charge additional processing fees when you pay bills through their online portals. Using your bank's online bill pay feature is a good idea if you're on a tight budget and want to avoid unnecessary extra fees.
- Save money on checks: While you may occasionally need paper checks, they're becoming less necessary as more payment solutions are available. Paper checks cost money, so you can keep more money in your wallet by using online bill pay tools.
- Fewer fears of delayed or lost mail: Unfortunately, mail can get lost or delayed. If you want to minimize the potential for lost or delayed mail, you may want to consider using your bank's online bill pay service.
- Stay organized: When you schedule payments through your bank, it's easier to stay organized. You'll be able to track your scheduled, pending, and paid payments, which could help you keep better financial records.
- Save time: Finally, this bill pay feature can help you save time. Life gets busy, and this solution offers an easy way to schedule your bills so they're always paid on time. Convenient electronic financial solutions like this can improve your life.
Learning new money management skills can allow you to improve your financial situation. Check out our personal finance resources for more information about essential money topics.
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FAQs
Your bank will send the payment on your behalf and deduct money from your checking account on your chosen date to cover the cost. This service offers a simple way to pay your bills electronically. If you regularly use your bank's mobile app or website, you may want to see if online bill pay features are available.
Should I use my bank's bill pay? ›
It's safer than the "same-old."
Mailing checks or entering details into a third-party platform, on the other hand, might put your financial information at risk. However, if electronic payment is not available to the payee, Bill Pay can take care of sending checks for you, too, safely.
What is bank bill pay feature? ›
An online bill pay service works by deducting a payment from your account balance and transferring it to a service provider. A bill pay service may be included as part of a checking account's features.
Does bill pay charge a fee? ›
How much does Bill Pay cost? Bill Pay is free to members. Certain additional features may be charged a nominal fee. What are the advantages of using Bill Pay?
Are there any disadvantages to online bill pay? ›
Online bill paying can be an expensive component to online banking as some companies will charge fees (See Online Banking Fees). If you've set up automatic bill payment and need to stop those payments, the process can take a while. With the ease of automatic bill payment, it's easy to forget which bill is due when.
What is the point of bill pay? ›
Online bill pay lets you make individual or recurring electronic payments from your bank or credit union.
Should I use bill pay or auto pay? ›
One big benefit to autopay is that typically, this option means you'll never have to pay a late fee. "You don't have to log in, and you're not at risk of paying late because you forgot, which can lead to late fees and ding your credit score. These are reasons why people like to set up auto payments," Rossman said.
What is the difference between bill pay and ACH? ›
Bill payments are usually listed as ACH debits, while payments to your account from another entity, like the US Government or IRS, are classified as ACH credits. The difference is that credits are pushed into an account while debits are pulled out of the account. Hopefully, that alleviates any confusion.
Does bill pay take the money out right away? ›
Automatic payments scheduled through Bill Pay will be subtracted from your balance on the date you requested unless it is a non-business day. Payments scheduled on non-business days will be subtracted from your balance on the business day prior to the scheduled payment date.
Is bill pay like direct deposit? ›
Generally, banking customers will set up this kind of direct deposit with their bank via the institution's “bill pay” option. This is often the only way to set up such a direct deposit, since it may be difficult otherwise to get the direct banking information for your recurring bills.
In 2022, 67% of respondents say they made a bill payment via mobile device compared to 63% who said they made a bill payment through an online portal (more than one choice was possible).
What are the cons of automatic bill pay? ›
Disadvantages of automatic bill payments include the difficulty in canceling them, the need to keep adequate funds in your checking account, and the potential of incurring a returned payment or late fee.
Is it better to pay with a debit card or a bank account? ›
Checking accounts and debit cards work together but can serve different purposes. Debit cards are convenient for in-person or online purchases. Funds are drawn directly from a linked checking account. Debit card transactions are typically faster and more secure than paying by check.
Is it safe to use a bank account for autopay? ›
If you have insufficient funds when the autopay is due, your bill won't be paid, and both the merchant and the bank may impose fees. If the vendor you're paying isn't trustworthy, your bank account information could be at risk of fraud.
Is it better to pay bills with a card or bank account? ›
You should also use your checking account to pay bills in the following situations: Your provider charges a fee for paying by credit card. In most cases, you'll pay more in credit card convenience fees than you'll gain in card rewards and perks for using a credit card.
What is the largest downside of setting up autopay to pay your bill? ›
Insufficient funds
The biggest drawback that comes with taking your hands off bill paying is the increased risk that those automated drafts will take your account into the red.
Is Bank of America Bill Pay safe? ›
It's secure
Bank of America uses several methods to help keep your online payment information safe, including: A unique Online ID and Passcode. A secure layer that helps protect your connection from outside inspection. Encryption that makes your information unreadable while in transit.
