|
|
Electronic Payments on the Internet |
|
Electronic payments are made without the use of paper
by way of a variety of electronic devices. There are
many types of electronic payments, including direct
deposit, direct debit, and electronic bill presentment
and payment ("EBPP"). Electronic payments
can also be made by credit, debit, or stored-value cards
and on-line banking transactions.
Although credit card and direct deposit payments have
been available for some time, more recent methods such
as EBPP, paying bills by telephone, or using an e-banking
site are growing in popularity.
|
 |
|
|
Direct deposit is an electronic transfer of funds directly
into your checking or savings account. Many companies
use direct deposit for ongoing, regularly scheduled payments,
such as salary, retirement benefits, dividend and annuity
payments. To enable your company to pay you by direct
deposit, you must sign an authorization form to allow
your company to credit your account. The authorization
must include account information, such as your bank's
routing number and your account number-found on the bottom
of your check.
Be sure to check that the information on the authorization
form is accurate before signing. Keep a copy of the
authorization form for your records. The information
about the transfer of funds to your account will be
reflected on your monthly bank statement; check that
all amounts are correct.
|
|
Top |
|
|
|
Direct payment is an electronic funds transfer out of
your checking or savings account that is initiated by
the person or company being paid. You can use direct payment
to pay your regular bills, such as mortgage loans, insurance
premiums and utility bills. For each company that you
wish to pay electronically, you will need to provide a
signed authorization form. Keep a copy of the authorization
form for your records. You also may be asked for a voided
check from your bank for account information. The authorization
will allow the company to collect the amount of the bill
from your checking or savings account on a specified date.
Remember that once you have signed an authorization form,
the company can access your account without any further
action by you, unless you ask the company to end the arrangement.
Some companies may require a certain number of days of
prior written notice before discontinuing direct payments.
Your monthly bank account statement will show the transfer
of funds from your account; be sure to check that all
amounts listed are correct.
|
|
|
Top |
|
|
|
If your bank offers this service, you can go to its Web
site and authorize payments to companies that you choose.
Your bank will send the payments to specified companies
either electronically or by check. Unlike direct payment,
paying bills through your bank over the Internet allows
you, not the merchant, to initiate all the payments.
All on-line transfers of funds from your account will
be reflected in your monthly bank account statement.
Be sure to check the accuracy of your monthly statements.
Electronic payment service may be free of charge-or
there may be extra fees.
|
|
|
Top |
|
|
|
An EBPP service pays bills directly from your account
and e-mails a monthly statement to you. Many companies
other than banks offer EBPP services. They operate in
many different ways. You may receive bills and monthly
statements at your bank's Web site that were sent to the
bank by the EBPP company. Alternatively, you may go to
an EBPP company's Web site to view and pay your bills.
In some arrangements, you go to the Web site of each biller
to retrieve your bill. Payment of your bills may also
occur through various methods.
EBPP companies may also provide other services: sending
you an e-mail reminder when a bill arrives, tracking
payment status so that you know when a bill payment
is sent, or filing bills electronically. EBPP companies
may charge monthly or per transaction fees for their
services.
|
|
|
Top |
|
|
|
When selecting an EBPP company, keep in mind that the
company will have access to your personal and financial
data. Therefore, make sure that your EBPP provider is
reputable. Check their listing with the Better
Business Bureau. Also examine the company's privacy
policy and security measures. Finally, be certain that
there is a way to contact the company if you experience
a problem. The EBPP company's Web site should contain
an e-mail address, telephone number, and mailing address. |
|
|
Top |
|
|
|
If you discover an error with a direct deposit or direct
payment, report it to the company making the direct deposit
and to your bank immediately.
Check your bank account statements regularly for errors
or problems. The Electronic Fund Transfer Act (15 U.S.C.
1693, et seq.) and Regulation
E establish procedures for resolving errors on your
bank account statement related to electronic funds transfers.
For example, you have up to 60 days from your account
statement date to notify your bank of any incorrect
or unauthorized payment.
Your bank must investigate the error and quickly report
the results to you. If your bank confirms the error,
they should resolve the problem within one day. Procedures
for the timely resolution of disputes are provided under
Regulation E. If the financial institution determines that
an error did not occur, they must send you a written
explanation of the findings within three days of concluding
an investigation.
You can read more about electronic funds transfers
and other consumer issues at the Board
of Governors' Consumer Information Web site.
|
|
|
Top |
|
|
|
If your debit or credit card is lost or stolen, you should
notify your bank immediately. Your losses depend on how
fast you report the loss or theft of the card-and on the
type of card.
To find out more, contact your credit or debit card
provider directly or your local Federal
Reserve Bank.
|
|
|
Top |
| |
|
|
|
|
