Online bill paying is now available through most banks. Alternatively, you can also choose to go through an online electronic payment service with your banking institution. There are some differences that need to be discussed between the banking system that lets you do online bill pay and the other service providers who let you use their online bill payment services.

This option revolves around paying your bills directly through the website of the utility or landlord (only available with large corporations). All three of these options will be discussed in full below. It will also describe the benefits of the bill payment methods between the three types mentioned above.

Online bill payment service offers a variety of bill management and payment features to make your life simpler and more efficient. First the online bill paying through your bank may or may not charge a fee for you to use it's services. If they do not charge a fee and it is part of how your account is set up then that is one of the major differences between bill paying services and the other service providers on the market.

That is because the other service providers who have online bill paying available, almost always charge a fee. Secondly, using the bank is that they may not cover all utilities or bills that you have in your name. This is one downside of their method of online bill pay services.

You will have to look around and find which options work best for you to save money. It could be that your bank is the best bet for certain bills or going directly through your utility company’s website may be as well.

The utility company and landlord may or may not charge a fee. An example using bill pay and paying through their site will demonstrate more clearly which is better for you to usel. When I use the service through the cable company there is no fee and it is directly debited from my account, regardless if it is a credit/debit card or an electronic check. However, when I use it for the electric company there is a small fee if I use a debit or credit card versus using the electronic check bill paying service through their site.

The other electronic bill pay services have benefits and disadvantages each. The first major benefit of using their services is that they will cover all your bills, maybe even your landlord or mortgage. If you have a mortgage, chances are you can pay your bill through their website directly for free. It works great for cable, gas, electric, oil heating, and other similar bills though.

The main disadvantage is that they charge you per use or on a monthly rate to use their services. This can add up over time and might bite into your monthly budget during a tighter month. Concluding, you might want to consider changing to paying your bills directly through the company’s website of your utility and/or mortgage company. Every little bit helps in this tough economy when you can even save $10 a month.

Compare both your online bill payment services provided by you bank against utility providers website and make the best decision for you.