Paying Finances with Online Payments

The continuous development of technology enables a lot of companies to bring their business closer to the clients. The availability of online payments makes transactions so much easier since clients will not have to do the regular things that are required before. Paying finances with online

payments eliminated the need to go to a business center, stand in line, or wait for priority numbers. Paying bills online will effectively save both the company and the client time and money because of the easy transaction methods.  There are many online finance guides that provide step by step instructions for doing this.

How Does Online Payment Work?

Paying your bills online may be something that you have done many times before. You may have usually taken for granted the fact that these payments involve complicated processes and calculations. Paying bills online will effectively save both the company and the client time and money because of the easy transaction methods. Utilizing something like, Mitratech eBilling might just be a great solution for you. Your computer and the merchant’s/company’s server will have to exponentially speak with one another in order to complete the process. A series of signals and data are sent back and for in a matter of seconds to complete the entire payment process.

What are the Types of Online Transactions?

Using different payment methods like debit cards, credit cards or electronic checks, there are three types of online transactions.

  • First it is important that whatever credit card you are trying to make a payment on is current and activated or registered. For an example of how to activate a charge card see: http://www.guidewhiz.com/www-kohls-comactivate-activate-the-kohls-charge-card/
  • One Time Customer to Vendor Payment – this type of payment usually happens when you shop online on different sites that sell different products. The usual process includes choosing a product, clicking on a shopping cart or buy, entering your credit card and other important information, then completing the sale. The site will process your payment and order and sends a confirmation email that will explain that you have made a successful transaction.
  • Recurring Payment Method – this type of online transaction involves enrollment of your credit or debit card to a facility that will automatically charge during a certain set date. This type of payment method is usually available in companies offering monthly payment installations like phone, car insurance, and loan management companies.
  • Automatic Bank to Vendor Charges – Most banks offer services known as online bill pay. You will be given the option to log in to the bank’s website, enter the vendor or seller’s information then authorize your bank to transfer funds electronically from your account to the seller’s account. This type of payment gives you the option to choose whether to do it one time or have it on a recurring payment method.

Secure Online Payment Concerns

One of the major concerns about online payment includes security. The rising number of identity theft has grown together with the number of people using online payments. Since you will be required to enter personal information like address, phone number, credit card numbers and even social security numbers the possibility of becoming a victim could be enormous. Thankfully, many ways were also developed to promote secure online payments. These include using secured username and passwords, 3 digit verification codes in credit cards, and many others. To avoid becoming victims make sure that you are purchasing through a trusted website and double check each transaction on your credit card bills.

Taking care of your finances online is one of the best ways to save time and money. Check out the many options that you can enjoy for online payments as well as the security methods that you need to apply when using online pay. Sending checks is a thing of the past with online bill pay. Consider the ease of being able to order checks online as apposed to the ease of actually paying your bills online and decide for yourself which will work better for your personal or business situation.

 

Use a Prepaid Card

Growing up my parents paid cash for everything in an attempt to keep themselves out of debt.  The thought behind it is that you cant spend what you dont have and this would typically keep their eye simple when it came to making big purchases. We grew up driving used cars, shopping at garage sales and wearing hand me down clothing from cousins and other family members.

Today with the use of credit being so prevalent, its hard to even carry cash around. Thanks to the debit card this has made the need to carry cash non existent in most cases. But lets say you are trying to teach someone the value of the all mighty dollar bill. Maybe a child or friend who is young or having money issues. A debit card in this situation may not be best, because in most cases there are over draft penalties that will be incurred when more money is drawn from an account than is currently in it.

There is a method used by many that has been beneficial in teaching people how to budget their money quickly and easily. The prepaid credit card. These cards can be filled up over and over adding funds whenever they are low. You can check the balance of a prepaid card online, over the phone or even in person at local store vendors.  These prepaid cards work much like a gift card given to someone, its loaded with cash and is typically good anywhere the brand of card is accepted.

Start off with a low budget, such as 25 or 50 dollars. Have the person using the card write down the expenses like they would do if they were balancing a check book. The ability to know the cards balance at any given time will help keep them from trying to make a purchase with funds that are not on the card.

This method is one of the simplest ways that ive seen to teach young ones about the power of the credit card and how it can destroy their credit for future purposes. Its important that good spending habits are instilled in them while they are young and before they have developed any bad spending habits.