Electronic Billing

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What Does Electronic Billing Mean?

Electronic billing is a bill payment method in which a customer can pay bills electronically over the Internet to an entity or organization. It is widely accepted by many government entities and other organizations. Due to multiple benefits provided by electronic billing, it is one of the most preferred methods of bill payment.

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Electronic billing is also known as electronic invoice presentment and payment (EIPP).

Techopedia Explains Electronic Billing

There are two approaches used in electronic billing, namely biller direct and bank aggregator. In biller direct, the consumer makes direct payment to the biller, who issues the bills on the website requested. Most biller sites make use of electronic billing providers specialized in electronic billing technology and processes in the payment service. In the bank-aggregator approach, the customer makes payments to the different billers from the conciliator or aggregator site. Most banks provide this model to users.

There are many advantages associated with electronic billing. The paperless mode of transaction is an environmentally friendly and less expensive form of bill payment. It is clutter free for both sender and receiver. Unlike traditional billing systems, it is more customer friendly and provides saving of time and effort. Billers only have to focus on the effective dispatch of bills rather than mode of payment. For customers, electronic payment is available 24/7 for access. Ease of tracking past activities or payments is easier with electronic payment for both customers and billers.

Electronic billing also has few drawbacks. Increased use of spyware and other malware on the Internet is a threat to the security of personal and financial details. Payment disputes can arise due to downtime of the Internet or the billing application.

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Margaret Rouse
Editor

Margaret jest nagradzaną technical writerką, nauczycielką i wykładowczynią. Jest znana z tego, że potrafi w prostych słowach pzybliżyć złożone pojęcia techniczne słuchaczom ze świata biznesu. Od dwudziestu lat jej definicje pojęć z dziedziny IT są publikowane przez Que w encyklopedii terminów technologicznych, a także cytowane w artykułach ukazujących się w New York Times, w magazynie Time, USA Today, ZDNet, a także w magazynach PC i Discovery. Margaret dołączyła do zespołu Techopedii w roku 2011. Margaret lubi pomagać znaleźć wspólny język specjalistom ze świata biznesu i IT. W swojej pracy, jak sama mówi, buduje mosty między tymi dwiema domenami, w ten…