Expert Q&A Archive

Setting up online bill pay with your financial institution is just like writing a check but without the hassle. The initial investment of time to set up the payments is well worth the time and cost you save monthly. When you set up online payments through your financial institution, you are directing them to take the funds from your account and send it to your creditor (just like when you write a check). However, if you set up online payments with your creditors, you are directing them to take the funds from your account. This may or may not be the safest position. It's very easy for them to debit your account more than once or for an incorrect amount. Your financial institution has no way of knowing if you have authorized this transaction. I always recommend the individual set up the bill pay with their financial institution - however make sure there are no fees associated with this service.

I was reluctant to do this because of the security aspect, but once my banker assured me it was safe I got hooked. You can schedule your payments to reflect when your income arrives and you save postage too.