17 Nov Online Bill Payments Overview
Online Bill Payments Overview
On-line payments are the start of the electronic age of banking from any personal computer. By utilizing the technology available, it is possible to record the expenditure and then process the bill payment without the time and hassle associated with printing, signing, and mailing a check. Online payment works with any U.S. account with check writing privileges. Even if your bank doesn’t offer a payment service, it is possible to sign up for Intuit Online Payment Service. Keep in mind that employees would receive electronic paychecks using the direct deposit feature, payroll taxes would be paid using the online payroll tax service, and sales tax payments would require a physical check or credit card payment at this time. All others can be sent electronically. If the payee is not set up to receive electronic funds transfer payments, the service will send a check via US mail with the account number the payee uses to identify the business making the payment.
To begin using the online payment feature, an initial set up process is required. To begin choose Banking > Banking Services > Pay Bills Online. The application can be found at http://www.intuit.com/banking/qbenroll.html. It needs to be completed, printed, signed and mailed with a voided check for the account to be used for the online bill payments. To see the current pricing, visit http://www.quickbooks.com/banking_finance/billpay/questions.html. Once you have completed the set up, to process an amount for on-line payment through QuickBooks, create the check or bill payment as usual, except to mark for on-line payment.
The following changes on the check or bill payment should be noted once marked for on-line payment:
1. Check Number: will now show “SEND”
2. Delivery Date: previously this was the check date. For payees who accept EFT, the funds are transferred directly on the payment date designated, but allow one or two business days. If the payee cannot accept EFT, the service will send an actual check via the US Mail so allow four business days.
3. Account #: This field is required. It is the number that the payee uses to recognize the payer.
4. Transmit Memo: This is an optional message to the payee. If this field is used and the box is marked on a check, an actual check will be prepared by the service provider, not an EFT, with a voucher containing the entire memo.
5. Include Ref #: Like the “transmit memo” option for a check detailed above, the include ref # option for bill payments will be handled by printing a voucher check that includes the ref # information.
6. Address: The address information is required for any online payees. The telephone number is recommended in the event that the financial institution needs to contact the payee regarding a problem with the payment.