Mar 23rd, 2008
Ask the Readers: Who Uses Online Bill Pay?
As an extension of our previous discussion on online banking, how many of you use online bill pay?
Often online bill pay is offered by not just your checking or savings account provider (whether that’s a brick and mortar bank, an Internet only bank, or a credit union) but often also by the creditor (like the credit card company). Online bill pay offers the promise of lower cost (look, mom, no stamps!), quicker delivery (often payments are credited the same day they are made), and avoiding the variance of the otherwise wonderful system known as the United States Postal Service.
Despite these advantages, for a long time, I was a holdout. I believed that sending paper checks in the mail helped me to hold onto my money longer and generated more interest, although it wasn’t all that wise in retrospect. Even in “high yield” accounts there’s not enough lag time to make up for a 41 cent stamp, and the dangers of late payments (and their associated fees and interest charges) got me to wise up.
Still, online bill pay has not been without its glitches; one month I swear I made a payment but it never got credited. Another time I neglected to specify the date I wanted the payment made as the payment’s due date and immediately had to rush over to the bank to cover the $350 I didn’t have in my checking account. And finally, while I typically use the automated bill pay on the creditor end (like DiscoverCard.com to pay my Discover bill), this isn’t offered with all of my bills; I used to use Netbank’s electronic bill pay, but am not so thrilled with ING Direct’s version.
Do you use online bill pay? What are your experiences like? Are the drawbacks outweighed by the benefits? Have you had issues like I have?
I haven’t been able to bring myself to trust automatic online bill pay. But I pay things online unless there’s a fee for it (cable, water both charge) or if it’s not possible (rent). Mostly the cell bill and my charitable donations. Oh, I do have one automatic debit set up to a charitable group I like.
I have been using online bill pay for at least the last 3 years. I try to use my banking institutions bill pay unless the merchant has no fees for the using their bill pay. The bill pay system is more convenient than just mailing in a check or money order. The only drawback so far is when the address for the merchant payment center changes. If the payment center moves then you will need to update the address on file with the bill pay provider.
I use My Check Free (www.mycheckfree.com). You can schedule your bills to be paid. They have a list of companies that they support, and it’s a great scheduling site. You can schedule as many payments as you want, as far in advance, and the dates.
I use the billpay from my bank as often as possible (and monitor it like a hawk). I once was burned by using the gas companies bill pay (a “glitch” in their system debited my checking twice). It wasn’t until I had filed complaints with the BBB, the Public Utilities Commission, Consumerist.com and a lot of phone calls until I got refunded in three days (to make the rent payment) vs. the 30 days they told me “was required.”