What is online bill pay?

Question: What is online bill pay?

Answer: Online bill pay is an electronic payment service that allows you to set up a secure online account to make one time or recurring bill payments. The source of funds for the payments is usually a checking account, but some bill pay services also work with credit cards. Online bill pay is convenient, with all bills and transactions being accessed in one web site.

Tips for Choosing Online Bill Pay Services:

Electronic Funds Transfer vs. Check
It's best to set up online bill payments with companies that will accept the payments electronically. Online bill pay services can cut and mail a check to pay bills when electronic payments are not acceptable, but doing so will add time to when the payment arrives and is posted.

Cost
There are some very good online bill payment services that are free. However, if you want more features, such as the ability to view months worth of bills online, you will probably have to use an online bill pay provider that charges a monthly fee. To decide whether the cost of online bill pay is worth paying for, consider that you will eliminate the cost of postage and checks used to pay bills.

• The Best Online Bill Pay Options

Is Online Bill Pay Safe?
In a word: yes. Online bill pay is very safe to use when you follow a few tips for paying bills online safely.

Is Online Bill Pay for You?
If you have bills from several different sources, online bill pay is probably worth the time to set up and the potential cost. If you only pay two or three bills each month, free online bill pay may work, or look into making payment at no additional cost directly on the payee's website.