Paying your bills online through your bank's electronic bill pay is convenient, flexible and cost effective. Some people fear that paying bills over the Internet or electronically runs a greater risk of identity theft. However, according to Consumer Reports, identity theft occurs more often to those who pay bills using traditional methods. There are many advantages to paying your bills through electronic bill-pay.
Convenience

Electronic bill pay allows you to pay bills at your convenience, anytime, day or night. By setting up a recurring payment, you can schedule your payments to be withdrawn from your account at the same time each month. This reduces the risk of late fees and negative effects to your credit rating.
Payment Flexibility

Traditional bill-paying methods require you to submit payments by check or money order. Using electronic bill pay, you can pay your bills directly from your checking or savings account, with a credit or debit card or as an electronic check.
Secure Payments

Each time you throw away a bill or receipt, you risk the chance of having your identity stolen. Bills and some receipts contain personal information and account numbers. Reducing the paper trail from traditional bill-paying methods reduces the risk of identity theft. In addition, banks and websites that accept electronic bill payment must have a secure website, also reducing the risk of identity theft.
Processing Times

Most banking institutions guarantee your payment is sent immediately to ensure it is received on time. If the payment date falls on a weekend or holiday, the bank will submit your payment on the last business day before the weekend or holiday. Payments are withdrawn immediately from your account, thus reducing the processing time it takes for your check to clear.
Cost

Paying your bills electronically reduces the cost of envelopes, stamps and check printing fees. For many banks and financial institutions, electronic bill pay transactions are free. Some banks charge a nominal fee if you pay more than ten bills a month through the electronic bill pay service.
Environmental Advantages

Paying your bills using electronic bill pay allows you to eliminate most of the paper from traditional bill paying methods. Electronic bill pay abolishes the need for envelopes, invoices and stamps. Edit your online account preferences to receive your bills via email to eliminate even more paper.
Electronic Records

The financial institution keeps track of all payments made through electronic bill pay. If you need to recall a previous transaction, you can log into your account and view the records, reducing the amount of time and effort it takes sorting through paper records.