The Advantages of Having an Automatic Bill Payment Plan
Online banking has offered us so many advantages that it’s actually hard to list them all out, but one of the most significant is being able to use an automated bill payment system.
Most services that require monthly payment allow for automatic withdrawal from your accounts or a charge on your credit card. An automated bill payment plan can be set up to make your life easier and to ensure that the accurate amount for each bill is paid every month without missing any deadlines.
Of course, there may be a few cons of this system, but the benefits are truly enormous. Here are some of the most important benefits of bill payment plans for both businesses and individuals. .
The most obvious benefit of automated bill payment plan is convenience. You don’t even have to think about your bills to pay them. It just automatically comes out of your account. The payment plan has to be paid only once and your bills will be paid every month, usually on a day that you choose.
The credit card agency or the bank handles the rest of the job and you can have time to do other things. Besides being convenient, this will also help you to keep tabs on all your bill payment because the bills will be organized and can be viewed online in one place.
This is especially good for businesses looking for an efficient way to track all of their payments, or individuals who like to keep tabs on where their money is going every month. On the flipside, businesses can also set up electronic billing so that their recurring customers can use automated payments to pay them.
Once the automated bill payment plan is set up, the bills can be paid without it being mailed to your home or you mailing paper payment. Mailing or receiving a mailed bill can increase the chances of identity theft, however, this can be prevented with automated systems.
Of course, online payment system has its own concerns and security challenges, however, the security issues online are nothing to be compared to offline. In the offline process, your checks will often be left in an unguarded mailbox but online payment system makes use of extensive encryption system that goes a long way to protect your account and fund.
For businesses, protection of financial data is much more important. Smart businesses have data backup and disaster recovery tools in the event of a security breach, natural disaster, or any other work stoppage.
In modern business, data and financial information are too valuable as business assets to leave them unprotected.
Less Clutter, Paperwork and Reduction Environmental Footprint
Even just a few years ago, older research argued that the environmental benefits of an automatic bill payment system is offset by increased energy use for people and businesses that have moved to digital.
Those increases in energy are far less harmful than the effects of a paper-based bill payment system. The resources, energy, and transportation costs are far, far higher.
Automated bill payment eliminates the need for paper bills and checks writing and as a result, you can save the environment substantially. Especially for businesses, the environmental costs are far less severe with an automated system.
Keep Tabs on Your Finances
Setting up an automated bill payment plan can help you to keep tabs on your finances and easily predict what you’ll spend month-to-month. Online payment makes it easy for us to access our account details even with our mobile phones. You can keep tabs on the account and know the state of the account. However, the situation is different with checks.
With checks, it might be difficult and in some cases impossible to determine when your bank will clear your check or charged to your account. This could make it difficult to track processes in your account.
You Won’t Forget To Pay
Forgetting to pay a bill usually results in some consequences.
The effect could be a negative hit on your credit score and in some cases, the consequences could be overbearing. However, you can prevent the unwarranted consequences and unforeseen circumstances by moving to automatic payments.
Banks and businesses will usually send you notifications before debiting the amount, but some other banks will debit the amount without informing you. But the bottom line is that you won’t forget because you put it out of your hands.
And as long as you pay attention to your personal or business finances, you should be ready for every payment.
Significant Improvement in Your Credit Score
Your payment history is one of the most important parameters used in determining your credit score.
One of the most effective ways of mitigating negative marks on your credit history is by making your payments on-time. If you become consistent with on-time payment, the negative marks will gradually fade but the best way to make on time payment without stress is automated bill payment.
You don’t even need to know that the payment is due to make it. This means that you will be very consistent with on-time payment and you can achieve the intended credit score improvement with ease.
Improve Your Financial Life
Automated bill payment plans offer a lot of benefits. Besides being highly convenient, automated bill payment plans reduce the chances of identity theft as well as your environmental footprint. Furthermore, automated bill payment plans can help you more easily monitor your finances.