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It depends on the payee. Many payees do support electronic payment; banks will print a check for those that don't. Encouraging people to use bill pay for everyt
by bdonlan 15y ago
It depends on the payee. Many payees do support electronic payment; banks will print a check for those that don't. Encouraging people to use bill pay for everything allows them to collect fees from the payee for those who collect electronically, and/or save their own processing costs. If they didn't support _all_ payees, however, people would be more reluctant to use the bill pay system. So it's a marketing decision, to support payees that aren't capable of receiving electronic payments yet.
- sschueller 15y agoThe whole issue is that payees have to pay to receive electronic payment but can receive check payments for free. That makes no sense to me. It should be the other way around. Even if a small business wanted to receive payments electronically the fees are too high for small volumes.
- bdonlan 15y agoIt might make sense in some cases; it takes less labor to accept electronic payments than paper-check payments. If the fees cost less than paper-check processing labor, it makes sense to pay the fees. I agree that it might not make sense for smaller businesses though - but that's why there's the check fallback.