Money Management

5 Advantages to Automatic Payment

There are many ways that technology is improving the lives of people all over the world. From increased communication to creating additional jobs, there are several positive things that have come out of the technological revolution. Automatic bill pay has been around for a while, but in recent years, it has become more common. While there are some disadvantages to be found when using technology, there are many advantages to automatic payments. From convenience to saving money, here are five of those advantages.

Convenience

The first thing that many people mention when talking about the advantages of automatic payment is the convenience. When a person has set up autopay to take care of a particular bill, they are able to choose the day that the payment is sent. Once that is done, the payment is sent out automatically until it is stopped. It also allows the money to be taken out of a different account, like a savings account. No matter what happens, the payment goes through unless it is stopped by the person who is making it. This is a way to make life a little easier and more convenient; a definite advantage to using automatic payments for bills.

On Time

Because this system means that each payment is going to be paid automatically, there is no risk of the payment being late. This not only prevents late fees, it also helps a person’s credit improve. Delinquent payments hurt a credit score, but delinquent payments are rare when automatic payments are used. When a payment is made on time and in the full amount, credit agencies see this and take notice. This can help a credit score improve and put the borrower in a position to be eligible for other credit opportunities.

Less Risk of Theft

A bill that is printed on paper and sent through the mail can be at risk of theft. This theft can either be identity theft or the theft of funds. Many companies offer automatic payments to protect both their customers and their own interests, to ensure that they receive their payments.  While there are still risks, there are also more safety features to help avoid those risks.

This is not something that just impacts individuals, however. A company also is at risk of losing money. To help prevent this and allow a company to see their total amount of money, companies like AccessPay offer financial products like SecureFlow. This product enables companies to detect fraud and error when making payments before the payment is made, preventing potential fraud from taking place.

Saves Money

Late fees are a very inconvenient cost added to a bill when it is late. These often create additional problems for people struggling to pay or are an inconvenience when a payment is late. Automatic payments help to avoid that by sending in the payment every month, regardless of whether or not it was remembered. Not only do automatic payments help avoid late fees by making sure that each payment is being sent in on time, they save money in other ways. When someone has to send in a physical payment, there are additional costs. Stamps, checks, and envelopes all cost money, and these are costs that can be removed by signing up for an automatic payment system. Some lenders use a rewards card to pay their bills, which can help them earn points and even cash.

Environmentally Friendly

Automatic payments offer another advantage, one that helps the environment. When a bill is automatically paid, this often means that there is an option to no longer receive a physical bill. Additionally, it means that there is no need to mail in a physical payment either. As a result, there are fewer pieces of paper that need to be thrown away, reducing the environmental impact that an individual or business has. While paper is easy to reuse, this still saves paper and helps preserve the environment.

For a corporation that is considering opening up their payment services to autopay or using an autopay system, there are companies that can assist them. Companies like AccessPay offer sound financial solutions to companies, helping them to make their finance departments more efficient and secure. For an individual, there are several advantages to using an automatic payment to take care of bills. Not only is this an environmentally friendly option, it saves money, is always on time, is convenient, and helps reduce theft. As with all financial discussions, however, it is important to do additional research to make an informed decision.

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