An automated payment is exactly what it sounds like: a payment that is automatically transferred from your bank account or credit card account to one of your billers. Your debit card, credit card, checking account, savings account, or money market account can all be used to make bill payment software. The amount due for payment is automatically collected by the biller in accordance with your payment plan. Different sorts of bills can be paid via automated payments. Aspire will tell you how you might be able to set up automatic bill payments to pay your:
- Mortgage.
- Bill for cell phone usage.
- Subscriptions for streaming services.
- Bills from credit cards.
- Auto loan payment.
- Payments on student loans.
Keep in mind that not all billers accept automatic payments. If it's a tiny local business, it's possible that they won't be able to take automated payments.
What Is The Process Of Automatic Bill Payment?
Depending on how you pay, automated payments can be processed in one of two ways. To begin, you can use ACH transactions to make automated payments. Depending on the biller you wish to pay, there are three ways to set up bill payment software. You may set up automated payments in the following ways by Aspire:
- Using the online bill payment facility provided by your bank.
- With the biller directly.
- Using your credit card as a payment method.
Pros And Cons Of Automatic Bill Payment
Automated bill payment invoice automation offers both benefits and drawbacks. Examining both sides might assist you in determining whether or not placing your payments on autopilot is the best option for you.
Pros -
- It's simple to set up automated payments with a bank account or credit card.
- You'll save time since you won't have to pay bills or make checks manually each month.
- Automated payments may save you money if they reduce the frequency with which you request paper checks or money orders from your bank.
- When bill payments are made automatically before the due date, you may prevent the possible damage to your credit score that late or missing payments can cause.
Cons -
- If you don't maintain track of your balances, automating payments may put you at danger of overdrawing your account.
- If an automated payment is returned due to insufficient funds, you may be charged a hefty fee.
- Putting recurring payments on autopilot may encourage you to become less hands-on with your money, which might lead to missed bills or overspending.
- It's possible that not all billers will accept automatic bill payment.
You have the legal right to cancel an automatic payment that you've set up. If you set up bill payment software using your bank's or credit union's online bill pay system, you'll need to cancel them through your online or mobile banking. It's critical to keep an eye on your account activity after cancelling an automated payment from your bank account or credit card to ensure no additional payments are made. Expense management software for small business is very easy and very helpful also.
