Collection Strategy Overview

Trends in Consumer Behavior
 Movement towards electronic based solutions
– Decrease in paper bills/statements
– Decrease in sending payments to lockboxes
 Desire for consumers to have multiple ways to make payments such as
– Direct debit
– Web-based
– Phone-based
– In-person
– Kiosk
– Wireless
 Desire to use alternative payment channels such as
– ACH
– Credit cards
– Debit cards
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 Focus on electronic payments
– Paper is declining, so many billers who process internally should really examine their cost structure
– As paper payments continue to decline, the cost of maintaining in-house lockboxes will continue to increase
– US Postal changes likely to hasten migration to electronic payments
 Focus on consolidating vendors for electronic payments and standardizing the posting and financial settlement of the payments
 Don’t try to build everything yourself
– Use valued vendor relationships to accomplish the transition to electronic collections
 Strategize how you want your collection process to look in the end prior to starting projects
– Get the game plan first before running plays
– This will reduce the chance of moving down paths that conflict with one another
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Billing
File(s)
AR Customer
Billing File
AR
Master File
Print/Mai l
EBPP/EIPP
Paper bill print and mail
(To consumer)
Biller branded web presentment of bill to consumer
BANK bill payment sites web presentment of bill to consum er
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AR
System
BANK info systems and internet reporting
1.
A single A/R posting file
2.
Financial settlement for all transactions
3.
Detail reporting of all payment streams for reconcilement and control
ACH
Services
&
E-Lockbox
EBPP/EIPP
Merchant
Services
Lockbox services
Payment Sources
ACH Direct
Debit program
Online bill payment transactions
Walk-in payment centers
Collection agencies, etc.
Biller direct EBPP solution
IVR (interactive voice response)
Deliver bills to consolidation sites
Mobile/SMS
Paper checks & return items
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Online Bill Payment Consolidation

 Questions
– Do payments coming to you via a computerized check from bill-payment providers require manual data entry?
– Are you getting transmissions of bill payments from multiple sources such as
CheckFree, Metavante, Online Resources, Western Union, IPay, etc?
 What is it?
– An efficient, streamlined process to collect incoming payments that have been initiated by consumers using various financial institutions, collection agencies, credit counseling agencies or walk-in payment center
 Benefits
– By automating the collection of these bill payments with a single transmission, you can reduce the number of check and list remittances you receive
– Also, eliminates the need to manage multiple electronic transmissions from individual vendors that produce these types of payments
– Gives your company the ability to perform customer service using an internet based platform for paper and electronic transactions
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Pay
Bills
Consumer
Consumer’s Online
Banking/Bill Payment
Provider
Collection and Credit
Counseling
Agencies, and Walk-in
Payment Centers
Internet based Client Service
Module
Biller
1.
2.
Dollars Immediately Available
Invoice Information in A/R File.
Information can be combined with
BANK Lockbox data file.
Customized
Filtering/routing available
Dollars and Consumer
Payment Information
BANK
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Biller Direct Electronic Bill/Invoice Payment and
Presentment

 What is it?
– A secure way to present invoices to your customers online and an electronic payment collection system that enables your customers to make timely, reliable payments in a secure, online environment
 Benefits
– Allows you to eliminate paper invoices, while streamlining and receiving automated payments
– Secure – presentment and receipt
– Can be accomplished without major investment or complex implementation (BANK developed and maintained website)
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Payment Channels
Web
IVR
Call
Center
EBPP/EIPP
Engine
A/R Posting
File
(Download
Or
Lockbox Merge)
Payment Options
CC
Settlement
Instr.
BANK
Merchant
Svc
Generate
Files
ACH File
BANK
ACH Ops
E-mail
Notification
Billing File
Loading
(upload
Or file transmission)
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Next Day
Settlement
Biller
Account
@ BANK
Next Day
Settlement

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