21 May The Pros of Automated Payments
As technology advances, companies innovate, and people change how they do business. Although there are those who still practice the old methodologies of buying and selling, most have embraced a more tech savvy option: the automated payment. An article published by Business Insider dates the death of the check back to September 11, 2001 when $47 billion dollars worth of payments were stalled as the FAA grounded planes in response to the deadly terrorist attacks. Electronic checking skyrocketed after the passage of the Check 21 Act and online payments have become increasingly popular.
Read more: The Death Of The Paper Check by Owen Thomas
More and more businesses are adapting their payment policies to align with the times. Some companies now charge check processing fees while others have completely eliminated the option of paper payments. This being said, it is safe to assume that while you may prefer to pay your bills with a check and a stamp, you will probably find it necessary to pay for certain things electronically and perhaps, with an automated payment.
At Two Roads, we want every financial decision to be an informed one. We took the liberty of compiling a list detailing the pros automated payments in order to showcase the benefits of this payment method:
Scheduling a bill payment is quick and easy and once it’s done, you’ll never have to worry about due dates or late payments.
Credit Card Rewards
By charging bills automatically to a rewards credit card, you accumulate points, which can result in free cash back, air miles, gift cards, and more.
Improves Credit Score
Missing a payment and delinquency are the two biggest things that damage your credit score. Automated payments ensure that your bills will be always paid on time, thus boosting your credit score.
Lowers Risk of Identity Theft
When bills and paper payments are not mailed back and forth, your risk for identity theft decreases. No one will gain access to your information through an unlocked mailbox.
Saves Time & Money
Setting up automated payments not only eliminates late fees, but also the cost of checks, stamps. envelopes, and gas for trips to the post office.
Peace of Mind
Automated payments give you the peace of mind in knowing that your bills will be paid on time without you ever having to remember a due date.
As with most everything, including financials, there are two sides to every coin. Don’t miss next week’s post warning you about the cons of automated payments!
If you would like more information on how to incorporate automated payments into your business, please don’t hesitate to contact us at 865-212-0063.