What is Billing- Billing is the process of sending an invoice to customers for goods and services. It is a system that has been around for years and is still used today, however there are many ways to pay your bill nowadays.
Advantages of Billing
- One of the most effective benefits and advantages of bill pay is that you don’t have to provide the vendor or whomever access to your bank account and all your information. Many people have chosen billing for this single reason because not having to provide the vendor with your bank information, and lowering the risk of unauthorized transactions to your account.
Disadvantages of Billing
- When using billing as your method of payment you must take in mind that you must pay for postage, envelopes, checks, and gas. Also, if the mailing company takes a while to mail out your payment you have the possibility of having to pay any late fees since it wasn’t an on-time payment. Bill pay is when you set up payments of bills through your bank account, credit card, or debit card. Calling in to make your payment is also highly time consuming.
- Another disadvantage is having to constantly remind and remember when your payment is due. You could have the risk of missing your payment and being charged extra fees.
What is Auto-Pay- Auto-pay is when you authorize the biller to schedule payments on your behalf. It is a service that automatically schedules and takes you payment from your bank account on your due date. Most people with busy schedules and people who have a hard time remembering to pay their bills, use auto-pay.
Advantages of Auto-Pay
- The best advantage of auto-pay is that you have to set it up once and never have to worry about it again. The vendor or whom you’re paying to will automatically schedule payments for you and will email you a confirmation that the payment has gone through and been received. Auto-pay users are usually helpful and convenient for those with little time to themselves.
Disadvantages of Auto-Pay
- Like billing there are some disadvantages of auto-pay. One the biggest downfall and disadvantages of auto-pay is that the vendor doesn’t know how much money you have in your account, or the account to which it is coming out of. This is a disadvantage because you can overdraft your account and possibly be charged an overdraft fee. Also, sometime the vendors make mistakes and accidentally charge you twice or they can forget to make them and you can have the chance of losing your services.