| Electronic Bill Payment |
Article Index for Electronic |
Website Links For Electronic |
Information AboutElectronic Bill Payment |
| CATEGORIES ABOUT ELECTRONIC BILLING | |
| accounting software | |
| business software | |
| credit collections software | |
| payment systems | |
| electronic commerce | |
| banking technology solutions | |
|
Electronic billing is the electronic delivery and presentation of statements, bills, invoices, and related information sent by a company to its customers. Electronic billing is also referred to as the following:
Certain electronic billing applications also provide the ability to electronically settle payment for goods or services. Customers of banks and billing companies can use the internet or the phone to conveniently remit payments as well as access their billing information. The service is also supported by Customer Service Representative s (CSRs) contacted directly by the consumer to facilitate payments or receive general assistance and answer questions. EBPP provides billing companies the ability to demonstrate to their customers that they are technologically-advanced companies with a primary concern for customer convenience and satisfaction. In addition, EPBB can produce substantial savings to traditional print & mail billing and payment remittance. An added benefit is a significant reduction in the use of paper. TYPES OF EBPP There are two general models of electronic billing. The first is the biller-direct model. This refers to an approach in which consumers make payments directly to one biller that issues bills that they receive at the website of the firm that issued the bill. An example would be of a Public Utility company offering this payment service to its consumers. The second general model is the bank-aggregator model. The approach under this model is to make payment at an aggregator or consolidator site, usually from a consumer's Bank’s Website . This model allows the consumer to make payments to multiple billers that are pre-registered to receive payments. PARTIES INVOLVED Billers, bankers, aggregators and consolidators implementing EBPP can play various roles in the overall EBPP process. Once roles are defined, it is easier to identify which model is most appropriate for the client's EBPP strategy. Billers may also implement more than one model in order to best serve their clients. Because the industry is continuously changing and redefining, the options and opportunities for EBPP will continue to expand.
NACHA NACHA-The Electronic Payments Association is a not-for-profit Trade Association that develops operating rules and business practices for the Automated Clearing House (ACH) Network and for other areas of electronic payments. NACHA activities and initiatives facilitate the adoption of electronic payments in the areas of Internet commerce, electronic bill payment and presentment (EBPP), financial Electronic Data Interchange (EDI), international payments, electronic checks, Electronic Benefits Transfer (EBT) and student lending. To define some guidelines for best practices, NACHA has created the Council for Electronic Billing and Payment of the NACHA InteroperaBILL Initiative of the Banking Industry Technology Secretariat (BITS). ONLINE BANKING Electronic bill payment is a now-common feature of Online Banking , similar in effect to a Giro , allowing a depositor to send money from his Demand Account to a Creditor or Vendor such as a Public Utility or a Department Store to be credited against a specific Account . The payment is optimally executed electronically in Real Time , though some Financial Institution s or payment services will wait until the next business day to send out the payment. The bank can usually also generate and mail a paper Cheque or Banker's Draft to a creditor who is not set up to receive electronic payments. Most large banks also offer various convenience features with their electronic bill payment systems, such as the ability to schedule payments in advance to be made on a specified date, the ability to manage payments from any computer with a Web Browser , and various options for searching one's recent payment history: when did I last pay Company X? To whom did I make my most recent payment? In many cases one can also integrate the electronic payment data with accounting or personal finance software. LIMITATIONS (UNITED STATES) Typically, US financial institutions formally prohibit the use of their consumer electronic bill payment systems for payments to any tax authorities, collection agencies, or recipients of court-ordered payments like child support or alimony. Any organizations or individuals outside of the United States are also usually excluded. Payments to government agencies for utilities such as water are usually permitted. SEE ALSO |
|
|