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What are electronic payments in financial software?


Question: What are electronic payments in financial software?
Financial software that supports electronic payments will let you automatically pay bills electronically with scheduled transactions.

Also see: Online Bill Pay

Answer: Electronic payments are payments that are made directly to payee from your bank accounts using security features over the Internet to process the transactions.

Electronic payments start with an arrangement you make with your financial institutions to have funds withdrawn from your account and sent to a payee.

Most financial institutions off electronic payments online directly from their web site to the payee. You also may be able to set up electronic bill payments through your financial software so when you enter a payment in the software, the transaction goes through and the bill is paid in the amount and on the date you specify.

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