How do banks benefit from on-line bill paying by clients?

Answer 1

They don't have to process your paper check. It is all done electronically at almost no cost to them.










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Answer 2

It cuts down on their overhead from handling paper, making mistakes, quickens money transfers, and adds to short term revenues for float. In addition, I have heard of no bank's overhead reductions resulting in lower bank fees and higher interest rates being paid.

Banks do nothing which will lower profits, believe me!

Answer 3

It reduces paper flow and by doing on line you do all the work not their cashiers. Same goes for an ATM only difference is that not only do they eliminate the payroll but they charge you for the service.

Answer 4

most online bill paying services charge the company receiving the payment a fee.

other places that offer online bill paying services to their customers charge the customer the fee.

the service has to be paid for by someone. the bigger companies can afford to pay the fee because of the volume of customers they serve (think amazon.com, etc).

Answer 5

It saves in man-hours since they don't have to handle all the paper. It saves in overhead since they don't need space to process/store all the paper. It saves in postage for not having to send checks to source banks.

It's a great deal for everyone. I only write one check a month and even that one bugs me.

Answer 6

They save the time required to process your handwritten checks (big expense!)

Answer 7

No paperwork. They don't have to print the documents nor do they have to mail them - which saves them a bunch of money.