This simple hack could save you money on monthly bills
Many people pay their bills electronically. Instead of writing a check and sending their payments through the mail, they use online billing services to schedule and pay their bills. This solution provides an easy and convenient way to keep track of monthly expenses.
However, some companies charge payment processing fees for this convenience. But if you know what to do, you might be able to avoid them. Find out my favorite way to avoid payment processing fees so you can save money on your monthly bills.
Avoid using the company’s payment system
Some companies charge payment processing fees when you use their online payment system. While it’s not uncommon for a consumer to pay processing fees for credit card payments, some companies also charge a processing fee even if you use a debit card or pay via an ACH transfer from your bank account.
These fees can add up when multiple companies charge you to process payments. If a utility or other brand charges a fee for a payment made through their online payment gateway, it’s a good idea to pay differently. Businesses offer online payment systems as a convenience to their customers, but it’s not the only payment method.
Pay some bills by check through your bank
Instead of using the company’s online bill payment service, you pay through your bank. If you have a login to access your bank account through the bank’s website or mobile app, you can easily pay bills online. Most of the best bank accounts have bill payment features built into their online system.
When setting up a bill payment for the first time, you will need to provide information such as company name, payment address details, and your account number. After you’ve taken these first steps, you can quickly schedule bill payments through your bank. You have the option to manually schedule invoices or set up recurring payments.
Once scheduled, your bank will process payments for you by withdrawing funds directly from your bank account. I use my bank’s online bill payment system for two of my utility bills as both companies charge me for using their payment systems.
Additional fees add up and result in wasted money
While a payment processing fee isn’t a big deal, the money does add up over time.
One of my utility providers charges a $1.10 processing fee when they make a payment through my checking account. This is a quarterly bill, but it would still result in me paying an additional $4.40 each year. Fortunately, I can easily avoid this fee.
It’s a good idea to keep track of the extra fees you pay in your daily life. Some examples include payment processing fees, late payment fees, overdraft fees, ATM fees, and credit card interest fees. By taking steps to eliminate these fees, you can waste less money.
If you pay fees to pay your bills online, you should check if your bank offers online bill payment services. It only takes a few moments to set up and you can save money.
Are you looking for additional tips that could help you manage your money better? Check out these personal finance resources to get your bearings.
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