Bill Payment Systems Key Terms
Learn the bill payment systems terms you'll need to research these servicesBill payment systems save individuals as well as small to medium-sized businesses time and money. Automatic bill payment eliminates the need for paper checks. Payments are processed more quickly because they are done electronically and can help ensure (with automatic reminders) that bills arrive just in time. Some systems allow the user to collect and analyze data that can help them make decisions on how they are spending their funds. As you research the different services and all they have to offer, you will want to understand a few key terms.
Online bankingOnline banking is also sometimes referred to as Internet banking. It allows customers to do all their financial transactions on a secure website that is operated by a bank or credit union. Bill payment services offer online banking to their customers.
Mobile bankingMobile banking refers to the use of cell phones and smart phones for connecting to the Internet to do bill paying. Many bill payment services can now be accessed from cell phones.
Interactive voice responseInteractive voice response (IVR) is used extensively in telecommunications. It allows a computer to detect both keypad and voice inputs. Bill payment services employ IVR to make transactions simpler and easier.
Automated clearing houseAutomated clearing house (ACH) is an electronic network that is used for financial transactions in the U.S. Large volumes of credit and debit transactions are processed via ACH. Bill payment services process transactions via ACH.
Electronic funds transferElectronic funds transfer or EFT is the use of computer based systems for performing financial transactions electronically. Bill payment systems use EFT almost exclusively.
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