Electronic bill payment

Electronic bill payment is a feature of online, mobile

and telephone banking, similar in its eect to a giro, allowing a customer of a nancial institution to transfer
money from their transaction or credit card account to
a creditor or vendor such as a public utility, department
store or an individual to be credited against a specic
account. These payments are typically executed electronically as a direct deposit through a national payment system, operated by the banks or in conjunction with the
government. Payment is typically initiated by the payer
but can also be set up as a direct debit.

3 See also

In addition to the bill payment facility, most banks will

also oer various features with their electronic bill payment systems. These include the ability to schedule payments in advance to be made on a specied date (convenient for installments such as mortgage and support payments), to save the biller information for reuse at a future
time and various options for searching the recent payment history. In many cases the payment data can also
be downloaded and posted directly into the customers
accounting or personal nance software.

4 References

Alternative Payments
Direct credit
E-commerce payment system
Electronic billing
Mobile banking

[1] eBPP workshop at CeBIT Future of Payments 2012

(PDF). Retrieved December 12, 2012.
[2] Banks Oer Sweeteners To Paying Bills Online. NY
Times. April 21, 2003.

History

Although this technology was available from the mid

1990s, uptake was initially slow until internet access by
households increased. By 2000, adoption of electronic
bill payment systems started to dramatically increase.

Impact

From the consumers point of view, electronic payment

of bills is cheaper, faster, and more convenient than writing, posting and reconciling cheques. In addition, though
limitations exist, a wider range of bank accounts or credit
cards can be used for the electronic payment of bills.
Using electronic bill presentment and payment enables
businesses to fast-track customer payments and get access to funds faster, which in turn results in cash ow
improvement.[1]
For banks the advantages of electronic bill payments are a
reduction in processing costs minimizing paperwork and
an increase in customer loyalty. In a 2003 study, the
banks said that customers who pay online show more
loyalty and are more receptive to other oers.[2]
1

5 TEXT AND IMAGE SOURCES, CONTRIBUTORS, AND LICENSES

Text and image sources, contributors, and licenses

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Electronic bill payment Source: https://en.wikipedia.org/wiki/Electronic_bill_payment?oldid=718453666 Contributors: Pnm, Steinsky,

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Content license

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