It used to be years ago that the only option for paying bills each month was by writing checks and mailing them in a stamped envelope. With the advent of online banking, Web-based systems were then developed which give individuals the option of paying their bills via a bank or biller\'s site with a series of clicks.

Recently, further developments have come about that offer various options for paying monthly bills without having to lift a finger. The first option is by giving the biller permission to withdraw the full amount due from your account each month. The second option lets individuals use the online bill system through a bank authorizing the money to be directed automatically each month to specific companies. Credit card companies are also now offering their clients the ability to charge bills to a credit card and then give the card company permission to withdraw funds from a bank account when the credit card bill is due.

Paying bills through an automated system can provide ease and convenience and is definitely an appealing method when compared to check writing and stamping envelopes. No automated method is mistake proof however, so it\'s important to keep in mind these following tips when using online bill payment.

Security
Of course, anyone who uses any type of online banking services can\'t but help consider the security of the system. We\'ve all read stories of ID theft. When it comes to paying bills online, many are still concerned that giving companies access to credit card numbers and bank accounts is too risky. Keep in mind, however, that according to a national consulting firm, eliminating paper statements and checks that could be stolen from the mail is a security benefit for online bill-pay users.

Mistakes
Another concern for many is that a company given access to a bank account may accidentally withdraw an improper amount. Clients should notify the bank immediately of any error so that the situation can be assessed and determined if credit is due. So it\'s important for customers to read their bank statements carefully each month and contact their bank immediately if a problem arises.

Unending Service
Once automated bill pay service has been terminated with a particular biller, clients should pay close attention to these accounts to make sure payments are not continuing to be withdrawn from a bank account. On occasion, a biller may continue to withdraw money in error from on an account that has been closed, such as a phone or cable bill. Authorizing bill payment through a bank allows the customer to keep control and stopping an automated payment may be easier if it\'s set up through a bank\'s online bill-pay system.