New doxo report exposes consumer burden of $156B in hidden bill pay costs, driven by increased credit impact costs, along with late fees, fraud costs, and overdraft fees

A new report released today by doxo found that hidden costs associated with paying bills amount to $156 billion annually, averaging $1,222 per household. Each year U.S. households spend over $5.03 trillion on household bills. Staying on top of these bills is the single biggest factor affecting consumer financial health, and the unnecessary complexity in managing them results in billions of dollars in avoidable consumer expenses each year, along with significant customer support costs. doxo’s Hidden Costs of Bill Pay Report not only highlights the concerns American consumers have about issues like identity fraud, late fees, overdraft charges, and negative credit impacts, but also quantifies the expense each of these causes for the average U.S. household.

Today’s bill-pay market is designed primarily around the needs of billers rather than those of the consumers. Instead of offering a simple, all-in-one experience that empowers the consumer, the traditional bill pay experience requires consumers to understand and navigate each biller’s individual policies and penalties, manage multiple logins, share payment account information across different platforms, and keep track of individual due dates. doxo was founded to solve this problem by putting the consumer in the driver's seat, empowering them to take control of their household finances and eliminating the hidden costs associated with paying bills.

"Economic uncertainty makes it more important than ever to manage and minimize the hidden costs of bill pay. American households are spending over $5 trillion a year on bills — and nearly $156 billion of that goes to fees, fraud, and credit impacts that might have. These are avoidable expenses, and the complexity of today's bill pay experience is what's driving them," said Steve Shivers, Co-founder and CEO at doxo.

Breaking Down the $1,222 Consumers Pay in Hidden Costs Associated with Paying Household Bills:

Analysis of consumer survey and statistical data shows the average U.S. household incurs $1,222 per year in additional hidden costs associated with bill payment, comprised of:

$781 in Credit Impact Costs: Staying current on debt payments is a primary factor for strengthening credit. doxo's analysis looks at the biggest components of consumer credit - mortgages, car loans and credit cards. This unique analysis shows that staying on top of debt payments, to improve a credit score by 100 points, saves the average household $781 per year in unnecessary interest expense.

$248 in Late Fees: Missing or paying a bill late often incurs late fees, and 35% of households reported incurring one or more late fees — reflecting widespread consumer concern, as 67% of bill payers worry about incurring late fees and penalties. This totaled $31.6 billion in household expenses, or $228 per household.

$98 in Fraud and Identity Theft Costs: The average household out of pocket costs for fraud and identity theft incidents amounts to $12.5 billion for the total market, or $98 per household a year. 25% of surveyed households reported falling victim to fraud or identity theft incidents in the past 12 months — and concern remains even higher, with 86% of bill payers worried about having payment account information stolen online. These are just the direct costs, not including the time and expense consumers spend to restore and repair their identity records once compromised.

$95 in Overdraft Fees: Banks charged consumers over $12.1 billion in overdraft fees, or about $95 per household. Survey data shows that 57% of households are concerned about overdraft or NSF fees when managing their bills. In the past 12 months, 21% of surveyed households reported paying at least one overdraft or NSF fee associated with a bill.

"We built doxo because consumers deserve a bill pay system that puts them in the driver’s seat and makes it much easier to track and stay on top of all the bills that must be juggled in every household. Simplifying how people manage and pay their bills isn't just a convenience play — it's a real financial win. Getting that $1,222 back in people's pockets matters, especially right now," continued Shivers.

Read the full Hidden Costs of Bill Pay Report 2025 here.

About doxoINSIGHTS

doxoINSIGHTS provides direct insight into The Bill Pay Economy™ by leveraging consumer surveys and doxo’s unique aggregate bill pay data set, comprising actual bill payment activity to confirmed household service providers across the country. doxo data brings together the broadest available data set for analyzing actual household bill payment activity, pulling from over 10 million paying consumers across over 97% of U.S. zip codes. doxo’s payment network covers over 120,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This uniquely broad statistical foundation powers doxoINSIGHTS reports – uncovering key trends for household financial health and bill payment behavior. Read more about doxoINSIGHTS’ methodology here.

About doxo

doxo delivers innovation that transforms the Bill Pay Economy™ for consumers, billers and financial technology providers. For over 10M consumers, doxo’s all-in-one bill pay makes it simple to organize and pay any bill on any device through a secure checkout. For billers, doxo’s network-driven platform enables online and mobile payments with a ridiculously simple integration, radically lower costs, and game-changing features that are unavailable with legacy bill pay vendors. For fintech partners, doxo delivers financial innovations to consumers across 97% of US Zip Codes, paying from more than 10,000 financial institutions to over 120,000 billers in 45+ service categories. For employees, doxo is a creative, ever-learning team that is passionate about building fintech tools that dramatically improve the bill pay experience. For investors, doxo provides an extraordinary opportunity to invest alongside Jackson Square Ventures, MDV, and Bezos Expeditions to disrupt a market that accounts for over $5T of US Household spend. To learn more about America’s leading bill pay network, visit doxo.com.

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