Understanding Online Banking
When people talk in general about online banking, they actually refer to several banking activities, including online bill payment, online account transfers, and online statements. Each of these activities warrants a brief description. In addition, it makes sense to briefly discuss the prerequisites for using online banking.
Online Bill Payment
Online bill payment refers to the automatic payment via the Internet for items you record in your accounting system. In the case where you’re recording payments using Quicken, for example, online bill payment means a payment you’ve entered in a Quicken register is automatically paid. In essence, when you use online bill payment, you tell the online payment service’s computer to use the information you’ve recorded about a particular payment for making the actual disbursement.
NOTE:
The cost for online bill payment service varies, depending on the bank. Currently, our banks charge $5.95 a month for both online bill payment and online banking for a personal account. The same banks charge $9.95 a month for both online bill payment and online banking for a business account. Does the price of the service seem expensive? If you consider how much it costs to mail a payment ($.33), it’s not so bad. And the check form you use to pay a bill may not be cheap.
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