Other Forms of Direct Payments

Telephone Bill Payment

Telephone Bill Payment allows the consumer to pay bills by keying information into a touch-tone phone. Telephone Bill Payments services are provided by financial institutions and private companies. At the time you enroll in a telephone payment service, you are given a numeric code for each company you want to pay. To pay a bill, you enter the appropriate code, and when prompted you enter the amount of the payment. This authorizes the withdrawal from your account and the payment is sent to the company. As with Direct Payment, the financial institution provides information regarding he transaction on the customer’s monthly statement.

On-Line Banking

Also known as Internet Banking, On-Line Banking allows you to initiate electronic payments from your personal computer. Many On-Line Banking sites also allow you to access account information, such as personal account balances, account activity, or to initiate transfers between accounts. Other general information about the company or financial institution may be available as well.

Using a personal computer and an Internet connection to access a financial institution’s or other payment agent’s website, you can select payment options from a menu of services. After initiating a payment, a withdrawal is made from your account and the payment is sent to the company. Though the request for a payment is made on-line, not all payments are actually sent electronically. For thos companies unable to receive electronic payments, you institution will draft a check to make the payment. The withdrawals are reported on your account statement.