Electronic bill payment

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Electronic bill payment is a feature of online banking, cellular and telephone banking, similar in effect to demand deposits, allowing financial institution customers to transfer money from their credit card accounts or transactions to creditor or vendor such as public utilities, department stores or individual to be credited against a particular account. These payments are usually made electronically as direct deposits through the national payment system, operated by the bank or together with the government. Payments are usually initiated by payers but can also be set as direct debit.

In addition to the bill payment facility, most banks will also offer various features with their electronic bill payment system. This includes the ability to schedule prepayments to be made on a specified date (suitable for mortgage payments and support payments), to store biller information for future reuse and options for finding the latest payment history. In many cases, payment data can also be downloaded and posted directly into the customer's accounting or personal finance software.

Video Electronic bill payment

History

Although this technology was available from the mid-1990s, its initial uptake was slow until internet access by households increased. In 2000, the adoption of electronic bill payment systems began to increase dramatically.

Maps Electronic bill payment

Impact

From a consumer point of view, electronic bill payments are cheaper, faster, and more convenient than writing, posting and reconciling checks. In addition, despite limitations, a broader range of bank accounts or credit cards can be used for electronic bill payments.

Using electronic bill payments and payments allows businesses to speed up customer payments and gain access to funds faster, which in turn results in improved cash flow.

For banks, the benefit of electronic bill paying is a reduction in processing costs that minimize documents and increase customer loyalty. In a 2003 study, banks said that "online paying customers show more and more loyalty accept other offers".

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See also

• Alternative Payment
• Live credit
• E-commerce payment system
• Electronic bill
• Mobile banking

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References

Source of the article : Wikipedia