Which of the following best describes Online Bill Pay?

• A. A method of transferring funds between accounts in person
• B. A loan offered to cover overdrafts
• C. A consumer banking technology that allows you to schedule and make payments over the internet
• D. A type of savings account with high interest

Answer: (C)

Online Bill Pay is a digital service inside online banking that lets you schedule and send payments over the internet. You add the payees you want to pay—such as utilities, a mortgage lender, or credit cards—enter the amount and the date, and choose one-time or recurring payments. The bank usually sends these payments electronically through the ACH network, moving funds from your account to the payee without you writing a check. This keeps all your bill payments centralized, on time, and easy to track. It’s not about transferring funds between your own accounts in person, it isn’t a loan to cover overdrafts, and it isn’t a savings account.