How to tell when Bill Payment is done electronically vs. paper check?

  • Thread starter Retired Coal Miner
  • Start date

R

Retired Coal Miner

Am I correct in thinking that if I pay a bill via an epay, and I never
get a paper check in return from my bank, then the payee was paid
electronically, i.e., the payment to the payee never involved any paper
check anywhere through the process?

I recently switched from MSN Bill Pay to my bank's bill pay service (I
send payments from within M03 for both). There's a piece of information
missing for me when I switched to using my bank as the bill payer: I
don't have a list of 'participating billers' (such as on the MSN Bill
Pay website). Unless I determine who the third party bill payment
service the bank is using, and then look at their website, ... because
the bank has no list of participating billers.
 
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J

John DeMastri

With most bank based online bill pay services, there are two types of
payees. The first is similar to the MSN "participating payees" where your
bank can typically electronically pay your bill without writing a check.
The second, is everybody else, where you bank has to physically print and
send a paper check to pay your bill. Since everyone can get paid, there's
no need for an explicit list. The difference is usually how quickly your
payee gets the $$. In my case, the bank will clear electronic-only payments
in 2 days, others in 6.

YMMV
 
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R

Retired Coal Miner

I want to take maximize that difference in how quickly the payee gets
the $$. And I'm curious how these EFTs/payments work.

I've been reading about how they do it in Europe, they (the banks) have
a system called Giro (maybe be misspelled). It allows for instantaneous
deposit of the payment funds into the payee's account, (and presumably
instantaneous proof the payment got there). But, oddly, the front end
is completely manual (a bank customer must hand an envelope / slip of
paper to a participating bank to authorize payment to a payee), and the
backend is much more quicker than what we have here. Whereas, for us,
our front end is highly automated (all the transfers, bill payments, and
transaction downloads we can do in Money), but the backend (the
payments) take days to complete.
 

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