Do I Need to Have a Credit or Debit Card to Pay My Bills?

Although many consumers use a credit or debit card to pay their monthly bills and daily expenses, there are other ways to pay the bills if you don't have a credit or debit card.

The Facts

• Most major retailers and businesses have set up online payment systems that allow customers to manage their accounts and pay their bills online by either submitting an electronic check or typing in their bank account information. Customers are not required to have a credit or debit card to use these systems. Businesses also provide payment addresses so customers can mail in personal checks or money orders or pay their bills in person.

Considerations

• Although people don't need credit or debit cards to pay their bills, some might benefit from using a credit card. In addition to earning rewards or other incentives from credit card companies, consumers have certain protections under the Fair Credit Billing Act, or FCBA, when they use their credit card. Under the FCBA, credit card users might be able to place a credit card charge on hold until they resolve a dispute with a merchant or a billing error.

Solution

• Consumers can avoid the hassle of using online payment systems, mailing or submitting their payments in person by using their bank's bill-pay service. Most major banks offer this free online service, allowing their customers to schedule their bill payments. The bank then transfers the money directly to the designated business or mails a check on the customer's behalf.