Janet's Green Planet

Paperless billing

When I open my cable bill, I am told that I can save a dollar off my balance if I opt for paperless billing.  Every bill I get in the mail lately has been suggesting this paperless option, although not all are offering a cash incentive. I wonder how the post office will stay in business.

I have read that soon we will be inundated with even more requests to opt-in to paperless communications, according to an IDC survey released Thursday.

Ninety-two percent of the 300 U.S. companies in IDC’s “Green IT & Sustainability Survey 2009” said getting customers to move from print to online services is a goal they hope to initiate within 12 months.

The survey also shows an increased interest from companies in implementing green practices as a way to take advantage of their growing IT infrastructure. About 46 percent in the new survey said it was the second most important factor driving sustainability practices, compared with 31 percent in a 2008 survey.

The trend is attributed to the budget squeeze being placed on IT managers and their desire to show executives they’re maximizing assets, as companies look to save money.

“Because they understand that much of their expanding infrastructure remains underutilized–adding to their company’s capital and energy costs–green IT policies can help establish a more comprehensive approach to utilizing their assets,” Vernon Turner, senior vice president of IDC’s Enterprise Infrastructure, Consumer and Telecom Research, said in a statement.

So they are calling it “Green” and of course it is cost saving, but at what cost?  I think the consumer needs to be aware of the active participation on their part to go on the computer weekly or sometimes daily to check their statements.  I myself bank online for the convenience and ease of it. Nevertheless there have been times I have called a merchant and asked for a printed bill to be mailed to me.

Not every household contains a computer, although this may be hard to believe.  My parents did not have a computer, nor my husband’s parents.  There is at least one generation out there that may still be unfamiliar with all this technology.  Some people prefer to be unplugged and it does have it’s advantages.

Keep in mind that going paperless and paying bills online means that the money you pay your bills with will be almost immediately removed from your checking account.  You don’t have a few days anymore for your mailed check to be delivered to the merchant or utility company.

An interesting article written by Nick Rini in 2000 for Telephony Online, may be worth reading again.

The Three C’s of EBPP Paperless Billing
Ultimately, e-mail billing boils down to three issues: control, convenience and confidence. Without all three, there’d be no incentive to move to an e-mail system of billing and payment.

• Control — One advantage of EBPP via e-mail is that the biller has complete control over the bill-delivery process, and the payer has control over how and when the bill is paid. A bank, for example, could enlist the help of a third-party consolidator, but with the technology now available, it’s no longer necessary to use an external service. EBPP technology is affordable and helps the biller retain control.Consumers benefit from freedom and choice in reviewing the bill and selecting a payment option. This is different from accounts that are debited immediately or are debited according to someone else’s schedule. Consumers are able to setup an exact date and amount that will be deducted from their accounts. They can change the amount paid on monthly bills and vary the date of payment from month to month.The PSI Global study indicates control is the most important feature consumers seek when selecting a payment method other than by check. Control equals security in the eyes of the consumer.
• Convenience — As of September 1999, according to Newsweek, more than 225 million people worldwide were sending and receiving e-mail. E-mail is a familiar, easy-to-use process for beginners as well as seasoned Internet users. And the PSI Global research confirmed that more than 60% of online PC users preferred e-mail.The ideal solution is one where there is no need to purchase, download, install or learn any special software or device. E-mail billing offers all of this and doesn’t require additional consumer education.
• Confidence — Consumers should be assured that their confidential information remains confidential. A comprehensive e-mail billing and payments system that assures private, secure interactions via the Internet is required. Privacy and security are critical issues driving business and consumer use of and confidence in EBPP.For security, the statement/bill would be attached as an HTML file to an e-mail that was then 128-bit encrypted. After receiving the bill, the consumer would send payment instructions directly to the billers who process the payment the same way they do for all other direct debits.Accuracy also is important. With e-mail billing/payment, billers are able to instantly validate the customer’s information and post payments to the customer’s account with 100% accuracy, eliminating the problems associated with earlier versions of electronic banking.

Who Should Offer EBPP?
Eventually, everyone who does any sort of billing will begin using e-mail to issue bills and collect payments. In the meantime, companies already using EBPP should include:

• Companies that want to send customers paper bills, statements, voting proxies, trade confirmations, etc., in an easy, convenient, private and secure way.
• Companies that need to send private documents securely over the Internet to customers, field offices, or corporate partners without specialized software.

EBPP: A Win-Win Situation for All Involved
Although electronic billing has not yet reached the utopian paperless society level, the financial benefits are real and significant for those who previously had to print and “snail mail” bills to consumers. However, EBPP will not succeed without consumer benefits as well.

By paying close attention to the three Cs, consumers are demanding, businesses will be able to deliver a successful e-mail-based EBPP system to consumers.