How to Setup Online Bill Pay
Online bill pay is a convenient way of managing your bills without checks and hard copy bills. Online bill pay allows you to send electronic payments to your payees quickly. An individual can pay his utility and credit card bills within minutes, eliminating the use of envelopes, stamps or trips to the financial institution. Various types of online bill pay are implemented in different ways.
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Instructions
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Set up bill pay offered by your financial institution. The online bill pay provided by your bank transmits funds from your bank account to whomever you want. In many instances, your bank simply prints the check and then forwards it by mail to the recipient. If you are sending payments to a company that is established in your bank's system, the bank can transfer the money to the company's account.
To set up this type of online bill pay, generally, you need a copy of the bill from the service provider. Go to the online bill pay website and add the service provider as a payee. Enter your account number and the company's address. Each time you wish to make a payment, enter the amount of the bill and the bank will mail the company a check and withdraw the money from your account.
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Establish online bill pay offered by the service provider. This service allows you to pay only one company, such as your electric company. To set up online with your service provider, check with them for instructions as it varies by company. While some companies may accept only your bank account information such as account and routing number, others may request a voided check and a direct deposit authorization form.
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Set up automatic online bill pay, which allows you to make recurring payments. Most online bill pay services allow you to make recurring payments so you can make payments according to the frequency in which you would like them to occur; for example automatic monthly payments to your cable company. When you set online bill pay, most bill payment services ask if you would like the payment to occur automatically and at what frequency. Select accordingly. Be sure to maintain good budgeting with this system so you have adequate funds available in your account for each automatic withdrawal.
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