Consumer Online Bill Payments The Challenges for Billers
AGENDA Ø Growing Payments Channel Ø Payments Processing Gaps Ø Biller Exceptions & Customer Service Issues Ø CPS understands the challenges Ø Addressing the challenges Ø AR-Box Solution Ø About Creative Payment Solutions 2
GROWING PAYMENTS CHANNEL Scope Ø 360 MM online payments are processed monthly by various participants 1 Ø This has grown approximately 48% over the last 10 years Ø 45% of transactions are initiated through online banking 2 Ø 48% are initiated through biller direct websites 2 Ø The remaining 7% use in store kiosks, telephone payments and other payment options Consumers Ø Like the convenience that technology permits Ø Continue to adopt these new payment channels Ø Want bill presentment to be more user friendly Sources- 1 NACHA Payments Summit (Exceptions Summit Pre-read), Bill-Payment Forecast 2 Javelin Strategy & Research/2012 Online Bank and 3
PAYMENT PROCESSING GAPS Expectations Ø Consumers expect transactions to be paid quickly after initiation Ø Billers expect all transactions initiated to be processed quickly Ø Consumers expect today’s technology to be efficient from end-toend Biller Challenges Ø Transaction flow to the biller is a batch process subject to processor times Ø Processing environment is decentralized with four major processors and various smaller processors Ø Processing flow is the same for payments through FI’s online bill payments as through biller websites Ø There is very limited industry knowledge of the processing timeframes Ø Processors make money on the consumer initiation of the transaction Ø Electronic bill presentment is being developed in a decentralized manner 4
BILLER EXCEPTIONS & CUSTOMER SERVICE ISSUES Ø Ø Ø Consumers view all problems as caused by the biller Key issue is the time it takes to post transactions Exceptions are expensive transactions to correct q q q q Estimated cost per exception is $35 Wrong account numbers entered Late payments can lead to past due notices Payments that revert to check require additional research Transaction research is difficult due to multiple payment sources Stop payments and return items cannot always be handled automatically Industry specific rules/requirements often create manual processes Smaller billers may not be utilizing full benefits of available technology 5
CPS UNDERSTANDS THE CHALLENGES Ø Ø Ø Industry knowledge of the complexity of the payment process Understand the costs associated with exceptions and manual processing Realize both financial and human resources are limited Billers are plagued with customer service issues as a result of payments posting inconsistently Management of multiple payment files and accounting entries creates challenges for staff Researching payments received from various online bill payment processors is frustrating and impacts customer service expectations 6
ADDRESSING THE CHALLENGES A solution focused on the billers’ needs that meets consumer expectations Ø Ø Ø CPS has arrangements with all major online bill payment processors to receive payments for their biller customers More timely and consistent transaction flow Provide one posting file that automatically updates customer accounting system Payment information can be sent to multiple accounting systems and credits sent to multiple bank accounts Reduce and simplify exceptions q Automated account number correction § q Incorrect account numbers are fixed online by biller when they occur Automated returns processing § § § Biller validation and stop files are reviewed and appropriate returns are processed Identified exceptions/stops can be reviewed by the biller for processing Stop payments and other return items can be entered by the biller for return by CPS 7
ADDRESSING THE CHALLENGES (cont’d) Ø Ø Ø Ø Multiple payment fields can be entered and automatically processed Biller files are scrubbed to correct exceptions during the implementation process “Straight-thru” processing or selected automated intervention Online reporting and research Work flows are continually being evaluated to reduce processing time CPS accepts all billers of any volume and/or frequency Centralized team that is dedicated to handling all customer service inquiries back to the processing source A web payment capability is also available for use through biller websites q Provides the most efficient end-to-end payment processing cycle 8
AR-Box Solution Current Payment Process Files from various processors • Numerous accounting entries • Post payments to billing system Exceptions • Manual entry • Delayed posting time • Service issues Process with AR-Box Exceptions Various processor files Corrected exceptions, stops & swaps One consolidated payments file Automatically updates customer accounting system Web-based research and reporting 9
ABOUT CREATIVE PAYMENT SOLUTONS Ø Ø Ø Ø Creative Payment Solutions (CPS) is an Application Service Provider (ASP) specializing in innovative payment and receivables processing solutions Established in 2003, CPS is based in Wilson, NC and is a wholly owned subsidiary of BB&T Corporation Our products can significantly reduce operating expenses for financial institutions and businesses of all sizes Comprehensive solutions with ongoing training and support, including on-site and remote product training and sales support services Provide a web-based system that requires minimal integration and budget allocation Industry certified subject matter experts on staff Customer service team available from 8: 00 am to 11: 00 pm ET 10
Thank you! For more information or to request a detailed demonstration please contact : Tony Blackburn 513. 505. 0797 ahblackburn@ecpays. com or Julie Peckham 312. 915. 0553 jpeckham@ecpays. com Additional product offerings: Remote Deposit Capture Remote Remittance Check. Track NSF Check Collection www. Creative. Payment. Solutions. com 11
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