The Internet has revolutionized how we live and manage our financial lives. It won’t be long until banking online is as much a part of our lives as using a debit card is now. According to John Scalzi, in his book The Rough Guide to Money Online, by the end of this century close to forty million North Americans will be doing their banking online.
You probably have friends or family who are already veterans of this financial revolution. They also probably swear they would never go back to checks, stamps and envelopes again. Now that you’re ready to begin, let’s explore the advantages and the few disadvantages of moving to this next level of convenient money management.
Advantages of paying your bills online
Less paper, More Convenience
If you ever stressed over a misplaced bill because of that pile of unmanaged mail, the idea of less paper and more convenient payments will come as a major relief. With online bill payments, you can even select a convenient payment method of “recurring payments” for ongoing bills like rent, car payment etc. that automatically repeat the payment each month.
One-time and periodic payments can also be set up months in advance. No more saving paper bills in special folders to remember six months down the road. You can also choose exactly when you want your payment to go out – the number of days in advance of the due date (5 business days is generally recommended), or on payday or any other date.
Many companies will continue to mail out your paper bills for review if you prefer to save these records.
Anywhere, Anytime
Once you have access to the Internet, you can view statement activity, confirm the balance, finance charge and due dates, pay bills and transfer funds - all 24/7. Suddenly, your financial life can revolve around your personal schedule instead of the 9-5 schedule of most banks and businesses. Transferring funds at 2 AM while in your bathrobe is now an option.
Staying on top of your finances while you are traveling, whether for business or personal, is no longer an issue. You can log in from most anywhere to check on account balances, or even pay bills. Many hotels offer Internet access and Internet cafes are always easy to find. This means, no more bills to catch up on when you return.
Save Time, Save Money
Two things everyone seems to be short of these days are time and money. Let’s start with the money. Obviously you will be buying fewer stamps, which could save you $60 a year. Add to that the annual cost of $10 – $30 for 150 checks. Granted, this amount is not going to break the bank. However, it would cover a few good times at the movies with the family; far satisfying than buying stamps, finding all the bill paying supplies, writing the checks and stuffing the envelopes.
How about factoring in your own hourly rate, and the amount of time spent dealing with all the bills? The total annual savings for paying bills online just went up. And let’s not forget the saved late fees of $25 - $35 when every bill is paid on time each month.
Count on Security and Privacy
Due to the enormous need for security when dealing with this level of personal financial information, all the reputable companies use the highest level of security currently available. Read through the security information on your bank’s web site and any other web sites where you store your financial information.
Your account information and transactions are protected with 128-bit SSL (Secure Socket Layer) encryption, which allows users to establish sessions with Internet sites that are secure. Encryption is the scrambling of information for transmission back and forth between two points to prevent eavesdropping, tampering and message forgery.
To help protect your privacy while you are using the service, many web sites will sign you out of the Online Banking service after 10 minutes of inactivity.
Your privacy is also protected with the opt-out choice from direct marketing offers from the company itself and usually an assurance of no shared information with outside marketers.
Peace of Mind
Now you can focus your time and energy on more significant people and events in your life and not have to face the draining monthly ritual of paying bills. Another payoff is the excellent credit history you establish by paying bills regularly and on time.
Disadvantages of paying your bills online
Down Time of the Web site
There are going to be times when the system is down and you will not be able to access your information. It may happen on the weekend or late evening when you want it the most. If your financial situation is urgent, there is always the standby of the telephone. Some of the banks and credit card companies have twenty-four hour service. Also by choosing reliable bill pay system the down time will be very minimal.
Down Time for your computer
Who has not had problems with their computer, connection, or some other issue? This down time could be more challenging for you if you have also opted for the paperless route and have no paper records or printouts to refer to in an emergency when you really need to get online.
Be sure to back up your electronic files for this same reason. Those who have lost valuable data that was not backed up, will attest to how devastating this can be come tax time, bill time, etc. If it hasn’t happened to you yet, be grateful, and be sure that it never does by backing up all of your information on CD or disc.
Fees
Depending on the services you have signed up for, there will generally be some monthly fees involved. But, considering the savings of your time, energy and peace of mind, the fee may be a small price to pay for the convenience of having all your bills handled online.
And finally, remember when you are dealing with financial information and decisions in any arena, the responsibility is ultimately yours. Research your information, use prudence, and pay attention to details. Stay alert to changes or unusual information or activity when you review your accounts and are online.
You probably have friends or family who are already veterans of this financial revolution. They also probably swear they would never go back to checks, stamps and envelopes again. Now that you’re ready to begin, let’s explore the advantages and the few disadvantages of moving to this next level of convenient money management.
Advantages of paying your bills online
Less paper, More Convenience
If you ever stressed over a misplaced bill because of that pile of unmanaged mail, the idea of less paper and more convenient payments will come as a major relief. With online bill payments, you can even select a convenient payment method of “recurring payments” for ongoing bills like rent, car payment etc. that automatically repeat the payment each month.
One-time and periodic payments can also be set up months in advance. No more saving paper bills in special folders to remember six months down the road. You can also choose exactly when you want your payment to go out – the number of days in advance of the due date (5 business days is generally recommended), or on payday or any other date.
Many companies will continue to mail out your paper bills for review if you prefer to save these records.
Anywhere, Anytime
Once you have access to the Internet, you can view statement activity, confirm the balance, finance charge and due dates, pay bills and transfer funds - all 24/7. Suddenly, your financial life can revolve around your personal schedule instead of the 9-5 schedule of most banks and businesses. Transferring funds at 2 AM while in your bathrobe is now an option.
Staying on top of your finances while you are traveling, whether for business or personal, is no longer an issue. You can log in from most anywhere to check on account balances, or even pay bills. Many hotels offer Internet access and Internet cafes are always easy to find. This means, no more bills to catch up on when you return.
Save Time, Save Money
Two things everyone seems to be short of these days are time and money. Let’s start with the money. Obviously you will be buying fewer stamps, which could save you $60 a year. Add to that the annual cost of $10 – $30 for 150 checks. Granted, this amount is not going to break the bank. However, it would cover a few good times at the movies with the family; far satisfying than buying stamps, finding all the bill paying supplies, writing the checks and stuffing the envelopes.
How about factoring in your own hourly rate, and the amount of time spent dealing with all the bills? The total annual savings for paying bills online just went up. And let’s not forget the saved late fees of $25 - $35 when every bill is paid on time each month.
Count on Security and Privacy
Due to the enormous need for security when dealing with this level of personal financial information, all the reputable companies use the highest level of security currently available. Read through the security information on your bank’s web site and any other web sites where you store your financial information.
Your account information and transactions are protected with 128-bit SSL (Secure Socket Layer) encryption, which allows users to establish sessions with Internet sites that are secure. Encryption is the scrambling of information for transmission back and forth between two points to prevent eavesdropping, tampering and message forgery.
To help protect your privacy while you are using the service, many web sites will sign you out of the Online Banking service after 10 minutes of inactivity.
Your privacy is also protected with the opt-out choice from direct marketing offers from the company itself and usually an assurance of no shared information with outside marketers.
Peace of Mind
Now you can focus your time and energy on more significant people and events in your life and not have to face the draining monthly ritual of paying bills. Another payoff is the excellent credit history you establish by paying bills regularly and on time.
Disadvantages of paying your bills online
Down Time of the Web site
There are going to be times when the system is down and you will not be able to access your information. It may happen on the weekend or late evening when you want it the most. If your financial situation is urgent, there is always the standby of the telephone. Some of the banks and credit card companies have twenty-four hour service. Also by choosing reliable bill pay system the down time will be very minimal.
Down Time for your computer
Who has not had problems with their computer, connection, or some other issue? This down time could be more challenging for you if you have also opted for the paperless route and have no paper records or printouts to refer to in an emergency when you really need to get online.
Be sure to back up your electronic files for this same reason. Those who have lost valuable data that was not backed up, will attest to how devastating this can be come tax time, bill time, etc. If it hasn’t happened to you yet, be grateful, and be sure that it never does by backing up all of your information on CD or disc.
Fees
Depending on the services you have signed up for, there will generally be some monthly fees involved. But, considering the savings of your time, energy and peace of mind, the fee may be a small price to pay for the convenience of having all your bills handled online.
And finally, remember when you are dealing with financial information and decisions in any arena, the responsibility is ultimately yours. Research your information, use prudence, and pay attention to details. Stay alert to changes or unusual information or activity when you review your accounts and are online.
by Judy Lawrence, Author of The Budget Kit
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The more you lose yourself in something bigger than yourself, the more energy you will have!! 
