What Is Online Bill Pay and How Does It Work?

If you haven’t paid any of your bills online you are wasting tons of valuable time. Besides time this is the new way of paying bills. This is a process where you can pay your bills online by using a computer, mobile phone, or tablet. The other pros are it’s convenient and it saves money

During the pandemic, millions of people were paying for things online so they wouldn’t have to go to the store. In fact, 52% of Americans are using their debit to make purchases online this year.

Why not pay our bills online also?

Banks and Institutions have allowed many of their customers to pay their bills automatically online. So much now more than ever, this could be another easier way to pay all your bills without worrying about an envelope or stamp.

And now you are here because you may have heard about or even started paying online but don’t know if you are doing it right?  In this article, I’m going to go over what is online bill pay and how to make it work for you

What is online bill pay?

Let’s start with the basics. What exactly is online bill pay? Online bill pay is a service that allows you to pay your bills and send money through the internet. Sounds simple but there’s more to it. 

The Online Bill Pay Definition

According to “The Balance”, Online bill pay is a digital banking or payment service that lets you pay bills over the web from a bank account—often at no extra cost. It can simplify your finances by eliminating the need to write out checks or count and distribute paper currency.

If it’s still confusing, let me go over it in a way I understand.

First, this is a service, a service that many banks now offer when you open a checking account. Many banks have this as a free service that you can sign up for, so you don’t have to worry about forgetting any payments. 

The payment for your bills online usually involves creating an account with a bank that pulls money from your account automatically to pay for one-time or recurring bills.

You can also set up automatic payments so you don’t have to worry about the hassle of remembering when your bills are due.

Some of the benefits of online bill payments are:

  1. You don’t have to make a trip to the bank or post office to pay your bills. All you need is internet access and a payment method such as credit card, debit card, checking account, or savings account.
  2. It’s faster than mailing in checks for your monthly bills. It also saves time and money on stamps and envelopes that you would have spent on mailing in your checks.
  3. Lots of banks offer free online bill payment, which is much nicer than having to mail in your payments. Some companies may have a monthly service fee or charge per transaction.
  4. If you bank online, most will allow you to schedule payments in advance or find ways to work with the sites you’re already using.
  5. Online bill pay sends out payments almost immediately, so no need to worry about whether they arrived on time.
  6. It’s more secure because it’s harder for someone else to intercept your sensitive information when it’s transmitted via computer networks.

My Online bill payment experience

There was a point of time when I was working two jobs and had less time to focus on paying my bills on time. So much that I had actually paid them late even though I had the funds for it. By the time I got my mail when I remembered to, they were already old.

I knew there were some bills I can pay online and some I couldn’t. Then I made a list, of my utilities, car insurance, and come to find out my rent could all be paid online.

Many times I’ve logged on to my bank’s website and saw the online bill pay feature but didn’t try it. After a while I felt like this could be one less thing for me to worry about, paying my bills.

I can honestly say that I have an online bank which is Chime and I have an institutional bank that is called Ion Bank. Both banks have the option for online bill pay.

And as for sending physical checks, Chime will send out a check for my rent which makes it easier for me to keep track and proof that I’ve paid on time.

For any of the companies, I have to pay all I have to do is have the information of the company that I’m paying. It could be the account number or simple as just the address.

As of today with online bill pay I have peace of mind and don’t think twice of something is paid or not.

If I have a discrepancy with my payments with a company, everything is searchable and I’m able to send a screenshot to whomever to resolve it. And I can share it on my desktop or my mobile phone.

Online bill management lets you pay various companies from one place.

How does paying bills online work?

The first step in using an online bill payment service is opening an account with the bank or institution that offers the service. Once this is done, you will be able to log in and view your account details online. 

You will also receive a username and password for the system, which you will need in order to make payments.

 Second, search for the company you want to pay. You can also use the company’s name or website address. Then, you will need to enter your personal information and payment method.

When you are logged in to your bank account, you can view your account balance and list of pending payments. If there are any bills that need to be paid, they can be found under “Pending Payments.” 

Steps to set up online-bill pay:

  1. Download the bank’s app on your device or visit their website on another browser.
  2. Create an account with your bank and link it to the account of the company that provides the bill that you want to pay.
  3. Log into your account and select “pay a bill” or “add a new biller” from the list of options. Enter in all of the information needed for them to send you a bill,


Online bill paying has become a popular way for people to pay their bills. It’s usually an optional service offered by many banks and financial institutions. 

This service allows customers to pay their bills electronically, without having to go into the bank or post office to submit a paper check.

So if you’re wondering how online bill pay works. It’s easy! All you need to do is log into your bank account, enter the amount that needs to be paid, enter the account number, and then hit submit!

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