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MIS_Project_105339_111042

VIEWS: 0 PAGES: 14

									   Gene Fashaw
    MWF 1-150
 October 29, 2004
Professor Sistrunk
Click on topic to jump directly to slide
o    What is Online Bill Pay?
o    Advantages v. Concerns
o    Business and Consumer Protection
o    Companies that offer online bill pay
o    Direct Billers vs Banks
o    Who benefits?
o    Future Direction
o    Who is at future risk?
o    Interview
o    End notes
o    Bibliography
        In the last decade, the internet has brought about change
in the way we handle our finances. In 1997, Checkfree “launched the
first fully integrated electronic billing and payment solution in the
country and the first Internet bill or “e-Bill.”1 Since then, an increasing
number of companies are allowing their customers to pay there
bills online. You are able to pay bills directly through your savings
                                  or checking account, or use a debit
                                  or credit card. Today, “nearly 30%
                                  of U.S. consumers now say they pay
                                  bills online, the largest share ever
                                  recorded in the four years since
                                  the American Banker/Gallup
                                  Consumer Survey first asked this
                                  question.”2
•Ability to pay anytime   •Security
•Save on postage and      •Questions of reliability
envelopes
                          •Comfort
•No postal delays
                          •Lag time
•Saves time
o 10 million Americans were victims of
identity theft in 2002, and this crime cost
businesses more than $47 billion.
o James Van Dyke, believes that using the
Internet for banking and paying bills actually
reduces the threat of identity theft and banking
fraud.
o 5 % of all identity theft could be reduced if
paper billing were eliminated.
o Using the Internet for bill paying and
banking can reduce risk by up to 18%.3
There are numerous organization that offer there
customers the option to pay their bills online,
including:




All of which offer some form of online bill pay service.
o 68% of those who pay bills online do so with billers, not
banks.4
o Many banks charge a fee for bill pay services in which you
are able to pay all your bills at once.
o Direct billers are able to provide detailed bill summaries,
faster transaction rates and account history information.5
o Banks are attempting to attract customers to it’s bill pay
service through various means.
o Consumers face a lag time between payment initiation
and biller receipt when paying through banks, however that
time is decreasing
o Banks who are willing to adapt to the current trends, like U.S.
Bank and Bank of America, have eliminated fees for online bill
payment.6
o Organizations that offer its customers online bill pay directly
o Companies that power the services provided, such as
Checkfree
o Consumers who are comfortable and demand online bill pay
o A survey showed that there has been a steady rise in the amount
of people using online bill pay; 18% in 2002, 24% in 2003, and 29% in
2004.7
o Online bill payment “is still an alien concept for many
consumers.”8 so ways to inform customers are improving
o Banks are moving toward free online banking to compete with
direct billers.
o More and more companies are beginning to offer online bill pay
services
o Banks unwilling to do away with fees for online bill
pay
o Banks, as more people elect to pay bill through the
billers
o Postal services that are being replaced by online
bill pay and online transactions
o Organizations that fail to inform consumers of there
service or do not offer it at all
     David Fontaine
Director, Public Relations
 Checkfree Corporation
     (678) 375-1682
1.   http://www.checkfree.com/about.htm
2.   “Online Satisfaction Rises Along with Web Bill Pay,” Daniel
     Wolfe. American Banker. New York, N.Y.: Oct 5,
     2004.Vol.169, Iss. 192; pg. 14.A
3.   “Identity Theft Online: Debunking the Myths,”Jack M. Germain,
     TechNewsWorld, 01/17/04 2:00 AM PT
4.   “Banks Face Dilemma in E-Payment Trend,” By Elizabeth Millard, E-
     Commerce Times 04/29/04 5:26 AM PT
5.   “Banks Face Dilemma in E-Payment Trend,” By Elizabeth Millard, E-
     Commerce Times 04/29/04 5:26 AM PT
6.   “Banks Face Dilemma in E-Payment Trend,” By Elizabeth Millard, E-
     Commerce Times 04/29/04 5:26 AM PT
7.   “Online Satisfaction Rises Along with Web Bill Pay,” Daniel
     Wolfe. American Banker. New York, N.Y.: Oct 5, 2004.
     Vol.169, Iss. 192; pg. 14.A
8.   “In Brief: Web Video Brings in Bill-Pay Customers,”Steve Bills. American
     Banker. New York, N.Y.: Aug 17, 2004.Vol.169, Iss. 158; pg. 17
“Banks Face Dilemma in E-Payment Trend,” By Elizabeth Millard, E-Commerce
Times 04/29/04 5:26 AM PT

“Identity Theft Online: Debunking the Myths,”Jack M. Germain, TechNewsWorld,
01/17/04 2:00 AM PT

“In Brief: Web Video Brings in Bill-Pay Customers,”Steve Bills. American Banker. New
York, N.Y.: Aug 17, 2004.Vol.169, Iss. 158; pg. 17

“IRS Enlists Banks to Push E-Pay,” LAURA THOMPSON OSURI. American Banker. New York,
N.Y.: Sep 3, 2004.Vol.169, Iss. 171; pg. 4

“Online Satisfaction Rises Along with Web Bill Pay,” Daniel Wolfe. American Banker. New
York, N.Y.: Oct 5, 2004.Vol.169, Iss. 192; pg. 14.A

David Fontaine, Director, Public Relations Checkfree Corporation (678) 375-1682

								
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