Avoid bank fees at the BPay checkout

Avoid bank fees at the BPay checkout

March 25, 2011

Despite a stereotype that insists that generation Y is online savvy, new research points to the contrary when it comes to the under-thirties group’s bill-paying habits on their transaction accounts.

The research from BPay found that a quarter of Australia’s youth population still queue to pay bills over the counter. In the past year, more than a fifth of 18- to 25-year-olds paid bills in person at their biller, a quarter paid bills at Australia Post and 15 percent paid directly at their bank.

Why not pay online?
Given the convenience of paying a bill from home with just a few clicks, combined with 90 percent of generation Y choosing to bank online, there must be good reason for a quarter of them avoiding BPay, such as fees and charges.

Of the 426 transaction accounts featured on RateCity, 112 charge a fee to make a BPay transaction online. Of those, the average online BPay fee is $0.52 per transaction and some financial institutions charge up to $5 per transaction. If you were to pay 12 phone bills per year, this can really start to add up.

But the majority of transaction accounts – almost three-quarters of those available on RateCity – don’t charge such fees. So either generation Y doesn’t know the fees of their account and avoid using online transactions just in case they will get charged a fee, or they have an account which doesn’t suit their spending needs.

Not ruling BPay out altogether
The BPay research also found that Australia’s youth are open to the possibility of making payments via the internet and on their mobile phones. More than a fifth of 16- and 17-year-olds, and almost 40 percent of 18- to 25-year-olds are willing to give it a go, the data shows. That’s why BPay will launch a campaign this month to raise awareness of Australia’s young people about BPay and the speed and ease of paying a bill online.

Whether you fall into the generation Y age bracket or not, and you’re wanting to try BPay, check that your account is one of the 314 transaction accounts compared at RateCity that does not charge a fee for BPay transactions before you pay online.

 

 

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Learn more about bank accounts

Can I start a bank account online?

Yes, most lenders that operate in Australia will let you set up a bank account online. The process is usually simple and takes five to 10 minutes. You will probably need to provide a passport or birth certificate, as well as a driver’s licence, Medicare card or another form of secondary identification. Requirements differ from lender to lender, so some institutions might ask for more or different forms of ID.

Can you get a payday loan without a bank account?

Yes. Some payday lenders are willing to transfer loans to prepaid debit cards instead of bank accounts.

Can I find my bank account number online?

Yes, you can find your bank account number by logging into your online banking and clicking on the relevant account.

How do you open a bank account under 18?

If you’re under 18 and you want to open an Australian bank account, you will need your passport or birth certificate. (Some lenders might require just a Medicare card or driver’s licence.) You can apply online or at a branch. If you’re 13 or under, you will probably need a parent to accompany you to a branch.

Which bank is best for business accounts?

Unfortunately, there’s no definitive answer to the question of which bank is best for business accounts. That’s because ‘best’ will differ from customer to customer, depending on their unique circumstances. These include not only your company’s financial position, but also its size, its age and the sector in which it operates. Another factor to consider is what features you want in a bank account. Your business may require different features than another business; and your business may require different features tomorrow than it does today.

The best thing to do is to thoroughly research the market before opening a business account. And when you do open an account, you should reassess your options every year or two, because the market moves quickly. A particular bank might offer the best account today, but be surpassed by one or several rivals tomorrow.

How can I wire money to a bank account?

You can wire money to an Australian bank account either through your own bank or by using a money transfer company such as Western Union or MoneyGram. Either way, you’ll need the other person’s name, BSB number and account number. If you use a money transfer company, you might also need to provide the recipient’s address for large payments.

Do you need a bank account to sell on eBay?

You don’t need a bank account to sell on eBay. But if you don’t have a bank account, you must provide either a credit card or debit card.

Can I have a PayPal account without a bank account?

You don’t need a bank account to send or receive money through PayPal. However, you do need a bank account if you want to withdraw money from your PayPal account.

How can I check my bank account balance online?

Checking your bank account balance online is a simple process. Once you’ve logged in to your online banking, clock on the relevant account and the balance should be visible.

Can foreigners open bank accounts in Australia?

Many Australian lenders allow foreigners to open bank accounts in Australia. Often, this can be done before you arrive in the country – with no Australian address required. When you get to Australia, you can pick up your debit card, using your passport as identification.

How do you transfer money from PayPal to a bank account?

Transferring money from PayPal to an Australian bank account is simple. Just follow these three steps:

  • Go to your Wallet
  • Click ‘Transfer Money’
  • Follow the instructions

The money will take three to seven business days to reach your bank account.

Once you’ve made the transfer request, it can’t be withdrawn.

How can I deposit cash into my bank account?

The traditional way to deposit cash into your bank account is to go to a branch and give it to a teller. These days, many banks will allow you to make deposits through an ATM as well.

What do I need to open a company bank account?

To open a company bank account, you will probably have to provide 100 points of ID, an ABN and an ACN. You will probably have to provide the details of all signatories as well.

How do you set up a bank account online?

Once you’ve compared bank accounts and found the right one, the process of opening a bank account online is quite simple and can be done in around 10 minutes.

To set up a bank account online, you’ll need to prove your identity and provide an approved form of ID as well as your tax file number (TFN).

If you’re a new customer of the bank, you’ll need to verify your identity and potentially upload documents before you can complete your online application.

Once your ID has been verified and you’ve set up your bank account online, you should receive your bank cards in the mail along with your PIN and any other account details.