What is the cashless bill payment used for?

Hi there, @timw2.

Using Online Bill Pay is cashless, and it makes it's more convenient because you can make payments right from within QuickBooks Online. Here's what you can do with these feature:

• Pay bills via bank transfer or check directly from QuickBooks Online
• (QuickBooks Online Essentials, Plus, and Advanced only).
• Pay 1099 Vendors/Contractors via bank transfer (ACH) or paper check.
• Everything is all in one place. No need to switch between two products.

For further insights about the key benefits of using this feature, visit this link: What is Online Bill Pay?

For future reference, read through this article to learn more about entering bills and recording bill payments in QuickBooks Online.

Feel free to get back to this post if you have additional concerns. I'll be happy to be your guide. 

These are not online bill payments.  These show up as a bill payment (check), but they do not represent an actual cash payment.  The QBO accounting is a debit to AP and a credit to the bank (cash); however, no actual payment takes place.  They have the effect of showing a bill as paid, but once again, do not represent an actual payment against an invoice.  We have used this feature in the past and is now being questioned in an audit.  I need to explain it adequately to the auditors so they understand it clearly.  

Thank You,