What is an Electronic Payment?
Electronic payments are becoming increasingly popular in Australia. The most common types of electronic payment you can use to pay your mortgage are BPAY, employer credit, electronic transfers, and bank account transfers.
BPay allows you to pay various bills over the internet or phone without being charged an additional fee. Telephone, gas, water, and council rates are just some of the accounts you can pay using this method. Other monthly bills that have the BPay logo and payment codes can be paid using this method also.
Employer Credit basics
If you salary sacrifice, you may be able to use some of it as mortgage repayments. However, unless your employer is FBT-exempt, these benefits are subject to taxes. Your lender can take out some of your sacrificed wages electronically.
Electronic Transfers basics
Electronic transfers, also known as wire transfers, are among the most secure and fastest ways to make electronic payments. This is especially true if you are transferring money to your lender from your bank. Your lender will need to provide your bank with the following information to set up electronic transfers:
- SWIFT Code
- Their Name
- An account name
- An account number
- They may also need to provide your bank with a physical address.
Bank account transfers
Similar to electronic transfers, bank account transfers usually occur between a savings and a checking account or between you and another person. You need the same information as electronic transfers to set up bank account transfers, except instead of the SWIFT code, you need the other account’s Bank, State, and Branch numbers.
Electronic mortgage payments may be beneficial if you struggle to make your repayments on time. Electronic payments can be set up to be paid on a specific day