Online bill pay is a quick and easy way to send (or schedule) payments for the services you receive. That's true for recurring bills like rent, or sending money for a one-time bill, like the catering vendor at your mom’s birthday party.
Here are some tips on how to set yourself up for regular online bill payments, plus the different options you have for online bill pay.
The perks of online bill pay
It’s often preferred over other payment options. According to a 2025 payments study from the Federal Reserve, paper checks as a form of noncash payment have declined in popularity since 2000. Online credit transfers overtook checks as the preferred method of payment in 2012, with debit transfers following in 2019. Though checks are still accepted by certain service providers or for certain purchases, they usually take more time to write, send and deposit than online bill payments do.
Automated payments make it less likely that you’ll miss a bill. Scheduled and/or recurring payments are a useful tool. Whether you have the same bills to pay every month or you just want to know you won’t be behind when a bill comes due, automated payments are a great way to stay on top of your finances.
» MORE: How to negotiate your bills
All of your payment records are digitized. Online payment services create a digital trail of your spending, which can be helpful for maintaining your financial records.
Online bill pay options and when to use them
There are three main ways to pay bills online: through bank-initiated payment transfers, through a biller-initiated payment transfer on a biller’s website and through a third-party system that manages invoice payments.
For most recurring household bills, your bank or the biller’s website are the simplest default; third-party apps are usually best for informal one-off payments.
Here's how to pay your bills.
Through your bank or credit union. Many banks and credit unions allow you to set up automatic bill payments through their online checking or savings accounts via ACH transfer or Zelle, where you set up your biller to be the recipient of a payment. Banks and credit unions don’t usually charge for standard online bill pay services, though some may charge a fee for expedited service. Certain banks also have a send-a-check feature, which lets you schedule a check to be sent on your behalf, such as for a recurring monthly rent payment to your landlord.
Through the service provider’s payment portal. If your biller has their own website, it’s possible you might be able to pay them through it. This is more likely to be the case for larger companies and vendors as opposed to small businesses or individual providers, but it’s worth asking whether there’s an online portal where you can make a payment. Streaming services, phone service providers and utility companies are all examples of businesses that typically have their own payment portals, and you can often set up automatic recurring payments through these systems. Some payment portals take both debit and credit cards (though there’s usually a processing fee for the latter), so you may have some flexibility for how you make a payment.
Through a third-party transfer service. Some businesses use third-party services to receive payment. Perhaps one of the most popular third-party ways to pay is through a peer-to-peer payment app like Venmo or Cash App, though these apps are usually reserved for more informal, one-on-one payments, like paying a music teacher for your child’s lesson. There are also services like Wise, QuickBooks and wire transfers that are useful for different use cases, such as sending money internationally or sending large amounts. Like with other payment portals mentioned above, you may have options to pay with a debit card versus credit card, but keep in mind that you might be charged a processing fee depending on what you choose to pay with.
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One-time, scheduled or recurrent bill pay
There are a few different ways to set up online bill pay, and each can be helpful depending on the nature of your bill.
One-time payments. Depending on the recipient’s preferred method of payment, you can usually pay a one-off bill through one of the ways mentioned above: by sending the money through your bank via online transfer or check, paying through the recipient’s online payment portal or sending money through an approved third-party system.
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Scheduled future payments. Some payment systems allow you to schedule payments ahead of time so that you don’t have to wait or worry about forgetting. You can often schedule a payment to be transferred on a particular day in the future; for example, if you want to pay off your credit card balance the day after you get your paycheck, you can often schedule a payment in your credit card portal for the balance amount (or whatever amount you choose). It can create peace of mind when you know that a bill will be taken care of on time and you won’t be charged a late fee. Keep in mind that bank holidays can sometimes affect when a check or transfer goes through, so it’s a good practice to schedule payments at least two business days early to account for weekends and federal holidays.
Recurring payments. If you have a regular bill, you can often “set it and forget it” by establishing a recurring payment so that you don’t have to manually send the payment every time. Rent payments, mortgage payments, and utility bills are all great candidates for automated payment systems.
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One thing to consider: risk of overdrafting
If you’ve set up automatic bill pay to pull from your bank account, especially multiple automated payments, keep an eye on your account balance, and make sure you don’t forget about upcoming withdrawals. If your bank offers it, you can set up low balance alerts. You can also avoid overdraft fees by setting up an overdraft protection transfer, where your bank will pull funds from your linked savings account to cover the cost of a transaction without sending your checking account into the negative.
» Don’t miss NerdWallet’s picks for the best banks for overdrafts
