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 do not have to provide all your information to the vendor or whoever needs to access your bank account. Many people have chosen billing because, aside from not having to provide the vendor with your bank information, it also lowers the risk of unauthorized transactions to your account.
Disadvantages of Billing
- When using billing as your method of payment, you must take into consideration that you have to pay for the postage, envelopes, checks, and gas. Also, if the mailing company takes a while to mail out your payment, you have the possibility of paying any late fees since it was not 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 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 your 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 power consumers have the ability to set up their payment scheme and never have to worry about it again. The vendor will automatically schedule payments for you and will send an email if the payment has been processed and received. Auto-pay users find this payment option as helpful and convenient.
Disadvantages of Automatic Payment (Auto-Pay)
- Vendors can use this payment option as a sneaky tactic to charge you with a fee.
- With auto-pay plans, one cannot keep track on the bills that have already been paid each month which results in bank errors being unnoticed.
- Auto-pay users must always ensure that they have enough funds in their accounts to pay for energy bills. If not, they will be subject to overdraft charges.
- Setting up auto-pay plans is easy but opting out from this payment scheme can be very difficult.
- If auto-pay users do not pay off their bills, they could face enormous credit card debt.