Consumer Online Bill Payments
The Challenges for Billers
AGENDA
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Growing Payments Channel
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Payments Processing Gaps
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Biller Exceptions & Customer Service Issues
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CPS understands the challenges
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Addressing the challenges
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AR-Box Solution
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About Creative Payment Solutions
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GROWING PAYMENTS CHANNEL
Scope
 360MM online payments are processed monthly by various participants1
 This has grown approximately 48% over the last 10 years
 45% of transactions are initiated through online banking2
 48% are initiated through biller direct websites2
 The remaining 7% use in store kiosks, telephone payments and other
payment options
Consumers
 Like the convenience that technology permits
 Continue to adopt these new payment channels
 Want bill presentment to be more user friendly
Sources- 1 NACHA Payments Summit (Exceptions Summit Pre-read), 2 Javelin Strategy & Research/2012 Online Bank and Bill-Payment Forecast
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PAYMENT PROCESSING GAPS
Expectations
 Consumers expect transactions to be paid quickly after initiation
 Billers expect all transactions initiated to be processed quickly
 Consumers expect today’s technology to be efficient from end-toend
Biller Challenges
 Transaction flow to the biller is a batch process subject to processor times
 Processing environment is decentralized with four major processors and
various smaller processors
 Processing flow is the same for payments through FI’s online bill payments as
through biller websites
 There is very limited industry knowledge of the processing timeframes
 Processors make money on the consumer initiation of the transaction
 Electronic bill presentment is being developed in a decentralized manner
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BILLER EXCEPTIONS & CUSTOMER SERVICE ISSUES
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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
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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
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CPS UNDERSTANDS THE CHALLENGES
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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
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ADDRESSING THE CHALLENGES
A solution focused on the billers’ needs that meets consumer expectations
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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
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Automated account number correction
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Incorrect account numbers are fixed online by biller when they occur
Automated returns processing
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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
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ADDRESSING THE CHALLENGES (cont’d)
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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
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Provides the most efficient end-to-end payment processing cycle
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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
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ABOUT CREATIVE PAYMENT SOLUTONS
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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 8:00am to 11:00pm ET
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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
CheckTrack NSF Check Collection
www.CreativePaymentSolutions.com
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