Electronic Billing

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.


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

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.