by Jennifer Wagner

Created on: January 20, 2009

The use of debit cards for on-line, and even offline, bill payments has become increasingly popular. There really is no simpler, or speedier way to pay your bills, than with a click of a button on the computer. All major credit card companies, banks, and mortgage lenders offer the option of setting up monthly payments, or even a one time payment, which can be done with your direct debit card.

To pay your bills online, you'll have to set up an account and enter your debit card information. This is a process you will only have to do once. After agreeing to the terms of payment, a confirmation number is given, and an email is sent out verifying payment of the bill. The money is then transferred from your personal checking account quickly and efficiently, and there is no need to worry about a check being misplaced in the mail, or arriving past the due date.

While debit card use is extremely convenient, and makes paying bills simple, it's important to know that there are cons to consider as well. Obviously, the biggest concern is that your account information will end up in the wrong hands. While most companies take steps to prevent this from happening, there is always a risk that a hacker can get into the system. It's happened before, and it will no doubt happen again.

Personally, I had a negative experience with paying a bill with my debit card. Although I had arranged for a one time payment to be made, the company withdrew the same amount the following month without my knowledge. This caused my checking account to become overdrawn, and I had no option but to pay the overdraft fees accrued because of it. My bank could do nothing to assist me, and I had to contact the company directly, file a complaint for the unauthorized withdrawal, and request a refund. Although I was credited the original amount of the bill, I was stuck with the overdraft fees. This was a very unfortunate experience, and I have been much more careful with which bills I pay with my debit card since.

In general, I still recommend the use of debit cards to pay bills. The simplicity and convenience is just too good to resist. However, stay on top of your account information. By calling in and checking the activity on your account, you'll be able to see if any unauthorized transactions have occurred. Additionally, stay away from any company that doesn't have a solid reputation. Handing your information to the wrong people can cost you a lot.

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