Online bill pay services are an ideal way for companies to pay their bills automatically each month. Many banks and other financial institutions will offer this service for free or at a low rate.

Some examples of banks that offer online bill payment services are Bank of America, Citibank, TD Bank, PNC, Wachovia, Wells Fargo and Chase. You can also choose to use third party sites to make online bill payments.

1. Find out who offers online bill payment service and fees associated with this type of service. In most cases to pay bills online is a simple process that can save on postage costs.

2. Learn how to set up online bill payments through your bank. Your bank may have an online bill payment center that you can use to complete transactions.

3. Read reviews of different online bill payment processing sites. Find out which ones are good to use and simple to understand.

Action Steps
The best contacts and resources to help you get it done

Use FAQs sections of online bill payment services

If you look at vendors that offer online bill payments, you can read through their frequently asked question sections in order to learn the basics of how the service works and any other questions that you may have.

I recommend: HSBC Bank is a popular choice for businesses that are looking for a bill payment service option. Check out their FAQ page to answer your questions on how it works. First Premier has an overview of how you can pay bills online as well as a guided tour that will walk you through set up and how to use the interface.

Contact your bank about online bill payments

For many businesses, it will be easiest to use their bank as their source for online bill payment processing. Online you will put in each vendor's information and payment address. You will then be able to manually or automatically send a payment electronically each month.

I recommend: Wells Fargo offers a secure way to pay your company bills online. The bank will explain how to setup bill payment as well as protect you against fraudulent activity. MinnWest Bank has a business online pay service that allows you pay vendors, employees and more right from your PC.

Browse reviews and articles of online bill payment services

Many consumer sites can advise you on the best online bill pay sites to use and the costs that you will incur for signing up for the service. Ideally, you will also want to look for an online bill pay service that allows you to make payments to vendors whether or not they accept electronic payments.

I recommend: Consumer Search has a breakdown of popular options for online bill payment processing, including Quickbooks and PayTrust. You can also link to sites in order to start using online banking. Online bill payment services are rated by TopTen Reviews in order to let you know the features and extras that they offer. Dex gives an overview of the benefits of online bill paying for businesses.

Online bill payment services started to become popular in the early part of the decade. Many personal account holders used the services but it often wasn't available to business, too expensive or too unfamiliar. Today many companies offer online bill pay for their business clients.

Online bill payments save the cost of producing and mailing a check. With the simple click of a button, the bank handles the rest for you. You no longer are at the mercy of the postal system when you use the online bill payment center for your delivery system. Consider the following as you examine your options:

1. Online banking and online bill payments let you track your money easier.
2. Each service has cost differences for online bill payment service, so check it out before you choose.
3. Online bill payment processing is often faster for those bills that you laid aside, and then promptly forgot.
   

Action Steps
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See if you bank offers online bill pay service

Some banks offer the service to both business and personal customers with accounts, others offer it either not at all or only to those with personal accounts. See if your bank offers it and check online for instructions on how to setup online bill payments through your bank.

I recommend: Citigroup Inc. offers online bill pay to businesses allows customized online banking with only a fee for "Today's Account Activity Information Reporting." TCF Financial Corporation offers free online service with specific restrictions, so beware, there may be additional costs.

Check the cost of online banking, online bill payments and other options

Each company that offers the service has different ways to charge. Some charge a monthly rate, some charge by the item numbers and some don't charge at all. You need to evaluate the number of bills that you intend to pay online, and choose the best option for you. Be aware that sometimes other charges are higher, like the cost of the checking account, so a free service may not be the best deal.

I recommend: Paytrust specializes in bill pay options. It offers varying degrees of service from simple bill pay to comprehensive packages that even balance your checkbook. There are costs to this product and three different plans to suit your needs. RBC Bank (USA) offers free online bill pay to both business and personal accounts.

Pay bills online even when your bank doesn't offer the service

If your bank doesn't offer the service, or if the cost is too high, consider trying a method that backdoors the bill pay. Check the site where you owe business credit card debt or business loans. Often their site allows you to pay online from your bank account for free. Some credit cards even track the type of expense and give you a report at the end of the year. If you use a credit card for your expenses all month and use the right to pay online at their site, you get free online bill pay.

I recommend: Bank of America Corporation offers a variety of cards for businesses with online payment available. Discover Financial Services also gives reliable online payment options for their cards with records of real time employee spending and cash back for purchases. Both companies offer checks for those rare occasions that companies don't take plastic.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Today most businesses opt for the ease of online bill payment. Always check for a secure site if you pay directly at the supplier site.

No matter what industry you're in, you likely know about online banking. Online banking enables you to check your balance online anytime, and now most banks also offer online bill pay. Online bill pay is usually either free or available for low monthly fees. You should always have a basic understanding of any program in which your money is involved, so be sure to understand the key terms of online bill payment before you get online and start taking advantage of this banking benefit. Once you know the main terms, you will be amazed at how much time and effort online bill payments can save you.

Action Steps
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Online banking

Online banking allows bank members to perform financial transactions, including paying bills, through the Internet at anytime. Both Internet-only banks and most regular banks provide this service.

I recommend: Investor Glossary defines online banking.

Electronic payment

An electronic payment does not involve any paper or stamps, and you can make it online. You simply send money from your account to someone else's online bank account over the Internet.

I recommend: HowStuffWorks explains everything you need to know about electronic payments.

Payee

The person or company you pay using your account online is called a payee. You usually set up a list of payees into an online program that saves each one's information so that you can quickly and easily pay your bills each month.

I recommend: Find out information about payees in online banking at F&M Bank and Trust Company.

Pending transaction

A pending transaction is common to see after either paying bills online or spending money at a merchant. A pending transaction means the transaction has not yet cleared, as it needs to be approved first.

I recommend: Ecount explains what a pending transaction means in online banking.

Electronic check

You can pay bills online using an electronic check if you do not want to do automatic debit. This simply requires you to enter the information from a real paper check into the payee's website. Remember to void and tear up the regular paper check once you pay using the check number online, as that check will be considered used.

I recommend: American Airlines provides information about electronic checks.

Automated Clearing House

The Automated Clearing House, or ACH, is a secure network that handles many electronic bill payments. The term 'ACH' often comes up on your account history when you have a repeating payment that is taken out of your account each month from a payee.

I recommend: OSU Federal defines the Automated Clearing House.