FAQ Answers

Why is it called Electronic Bill Presentment and Payment (EBPP)?   back

Electronic Bill Presentment and Payment (EBPP) is the generic term for electronic billing systems.  This is the solution that gives bill payers the ability to view and pay bills via the Internet. The predecessors to EBPP where telephone phone and other proprietary solutions that permitted payment but could not deliver (or present) a bill.  

With the growth of the Internet, software companies began providing products which would enable bill payers the ability to see their bill or statement on-line.  These bills were available only at the billers Web site and were sometimes quite different than the look or content of a paper bill.  Since they weren’t actually delivered to the bill payer and so the term delivery was really not applicable.  Eventually, the term presentment was coined to describe this new feature.  Bills are “presented’ and a notice is sent via e-mail making the customer aware the bill is available for viewing.  While the term Electronic Bill Presentment and Payment has been in use ever since we feel the better term is Electronic Bill Delivery and Payment, since we provide the ability to actually deliver a bill to the customer.

Why are companies implementing electronic billing systems?   back

How much does an EBPP system typically cost?   back

There are two different types of solution providers.  One provider offers a software package which you install and then operate the system on in-house systems.  The second provider (like CTP Solutions) offers the solution as a service. This is also known as an Application Solution Provider (ASP).

Software packages typically cost in excess of $100,000.  In 2002 the Gartner Group estimated average first year costs for installing an EBPP system at $500,000.   In comparison a solution from CTP Solutions with similar function can be installed for less then $20,000.  Of course using our ASP solution has continuing monthly costs, but these are balanced by the 15-20% annual support fees charged by software package vendors.

How long does it take to get a system installed?   back

Just as in the question about cost, the time required to implement an electronic bill payment system depends on the type of solution.  If you buy a software package you have to implement both the hardware and software environment.  If you implement the solution via an ASP you are just plugging into an already functioning system.  In the study by the Gartner Group referenced in the previous question they estimated an installation period of 6 months on average for implementing a software package.  Our experience as an ASP is that 3 months or less is a realistic estimate for implementation.

What about security?   back

Security is critical no matter how you implement an electronic bill payment system.  You need to insure the solution provider has protected the system against unauthorized access or “hacking” and that data sent to you is encrypted to insure it can’t be intercepted.

I hear the terms B2B and B2C, what do they mean?   back

B2B stands for business to business and B2C stands for business to consumer.  When these terms are used in reference to an electronic bill payment system the term EBPP refers to a B2C, or business to consumer solution. EIPP, electronic invoice presentment and payment, refers to a B2B, or business to business, solution. The CTP Solutions solution covers both B2C and B2B uses. Small business behaves more like a B2C system. When our solution is used in a medium-to-small enterprise relationship we rely on email workflow management, as well as, dynamic document approval as offered by companies like Adobe.

What is the most important thing I need to consider about an electronic bill presentment and payment system?    back

To be successful in achieving your ROI objectives, the rate at which bill payers adopt to use an EBPP is critical.  The single most important thing driving adoption rates is ease of use for the bill payer.  While this would seem apparent many systems have cumbersome registration processes and confusing user interfaces.  The most successful system will be one that makes it easy for the bill payer to register and pay bills.  

What about standards, I hear they're important?   back

Standards can be very important when all participants agree to use them. Except for some high end B2B systems that use EDI, billing standards have not yet been universally adopted. In the meantime, the focus must be on flexibility.  Since  EBPP systems are just entering the rapid growth phase, standards will become more important in the future. 

The key factors in managing to a standards based environment will be to insure any solution is written on an open platform using standard languages, database, and document management systems. This will insure that as standards, formats and interfaces emerge your system will be able to adapt. In the meantime, we meet interface standards such as in the Electronic Remittance Advice (ERA) files, our interface to banking EFT systems and, of course,  PDF files that can be universally displayed and read on any platform. 

How much will I have to change my current statement?   back

Why can't I get an electronic bill that looks just like my paper bill?   back

You can if you select the CTP Solutions solution.  Our Data Nugget technology enables you to provide system users with an exact replica of their bill down to the graphics, POSTNET, OCR and bar code fonts.

I hear the term payment reversal used in conjunction with electronic payments, why is that - aren't all electronic payments preauthorized?   back

You are correct with regard to credit card transactions; they are preauthorized in real-time and given an OK or denied status.  eCheck payments, however, are just like a paper checks and can be returned for insufficient funds.  There is presently no eCheck balance authorization network. So the only validation we may perform is that the bank number is valid. eChecks will, however, return much faster than paper checks and if there is a problem you generally know about it in 2-3 days. Reversals may also be necessary for any transaction when fraud or payment disputes are enforced by the merchant or bank processor.

Why do you store all the billing documents on the Web site?   back

This is so your customer service can use the archive for any customer not just those choosing electronic delivery. When a customer calls with a question about their bill the fact that both the customer and agent are looking at the same document helps minimize confusion. Furthermore, it enables any of your customers to pay bills without enrolling for electronic delivery  We encourage users to use the system how they see fit by eliminating barrier to access. 

Why would I want to place other documents in eArchive?   back

You can make your Customer Service Agents more productive by having all the documents used in customer communication in eArchive.  These could include past due reminders and inserts, as well as bills and statements.  This way the customer, by going to the Web site, may actually be able to resolve the issue without the need for customer service.  And, if a call is necessary, the customer and the agent are looking at the same information.

How long can I keep documents in eArchive?   back

Since you assemble the electronic documents from my print stream what print formats do you support?   back

How does the information you need for developing the electronic documents get to you?   back

We extract it from a copy of the print stream you send to your printer.  You have probably spent significant time and money developing a billing document that best meets the needs of your business.  With our system you send a copy of the print file to us electronically.  We take this data and store it in eArchive and then make electronically delivery of statements to enrolled customers. Consequently, we preserve your investment in document design not disrupt it by requiring electronic documents to look entirely different.

What is this Data Nugget technology you talk about?   back

It is the software we have developed that enables us to create electronic documents that are very small in terms of their electronic size.  This in turn gives us the capability to have documents that are identical to printed documents and yet they are still small enough to conveniently send through narrow dial-up connections used by some consumers and businesses.

Why do you use PDF files?   back

PDF stands for Portable Document Format, and was developed by Adobe to provide a universal document standard.  A free Adobe reader is available for every popular software platform.  This allows us to make sure that no matter what operating system a customer is running they will have the capability of viewing the billing document exactly as intended. That doesn't always happen when using different vendor's browsers or even across different versions of the same vendor's browser.

I’ve heard PDF files take up a lot of room and can slow down your network?   back

Can I e-mail documents from eArchive to customers without having eDelivery Courier installed?   back

Can I interface eArchive to my Customer Relationship Management system?   back

Where does the eArchive reside?   back

Is the eArchive database secure against hackers?   back

Absolutely – we guard against unauthorized entry into the system whether by an individual or a virus.  To be doubly safe we also encrypt the critical data we store and further encrypt it when we send it to you as a file or to your customer as a billing document.

My company has spent a lot of money building a customer Intranet - is there any way I can use the system we have developed for controlling access to your CTP Solutions EBPP site?   back

If you want to utilize your system for authentication of users we will implement a trusted gateway.  This means you will be responsible for insuring the individual signing on to the system is who they say they are and we will "trust" you to in that regard and not perform an additional user authentication. This is sometimes referred to as "single sign on" processing.

Why is eArchive offered as stand alone service EBPP?   back

Why can't I host  my own eArchive?   back

Do I have my own Web site if I use CTP Solutions?   back

How reliable are your systems?   back

Our goal is 100% availability!  That is why we have multiple data centers and redundancy within each data center. Our contracts include service level agreements based on our availability.  In the massive blackout that struck the East Coast and Midwest, our emergency backup clicked into action and our services stayed on the air without any interruption.

Why do you call it eDelivery Courier?   back

There are a number of companies that use eDelivery as a designation for their products.  Ours is quite different since it delivers the billing document directly to your customer much like a courier brings a message by hand – only in this case it’s an electronic courier.

If I can e-mail bills from eArchive why do I need eDelivery Courier?   back

You can e-mail documents from eArchive on an ad hoc basis but initiating the e-mail is a manual process.  With eDelivery Courier e-mails are sent automatically based on mailing rules which are established by the recipient.

How does my customer service agent know if a caller has registered for electronic delivery?   back

How soon after I send the customer information to you are the bills sent out electronically?   back

How do you know to send a bill electronically?   back

What insures a customer won't get both a paper and an electronic bill?   back

You send us back (or include in the print stream) information about what was printed and what should go electronically. We like to know how you made your print suppression decision so no statements fall through the crack or get duplicated.  A customer may get one paper bill after they enroll since one may have been in the mail but not received, after that they should receive only an electronic bill.

You can send documents attached to e-mail as a PDF. What about my customer that don't have a current Adobe Acrobat reader?   back

While this is unlikely we provide the way to download a copy of the Acrobat Reader on the EBPP Web site.  All  a user has to do is click  on a prominently marked button and they will be led through the process,

Doesn't using PDF slow my customers system down?   back

What about the security of a PDF attached to an e-mail?   back

Why do you offer eDelivery Courier as a separate product?   back

In addition to providing a complete electronic bill payment system CTP Solutions also offers a broad range of document management services.  Just as some of our customers use eArchive for its document management capability others use eDelivery Courier to distribute documents electronically that are produced from a print stream.

Can my customers pay on the web without getting electronic delivery?   back

Do you handle all kinds of credit cards?   back

Do you handle debit cards?   back

Can I use my own bank accounts?   back

Yes you can, but you may incur a larger setup charge to do so.  We have established a number of banks we called Preferred Providers.  Working with these banks we have established data formats and processes that are designed to work well with their systems.  If your bank is one of our Preferred Providers there will be no additional charge.  If not we will need to establish a relationship with your bank and duplicate the work we have already completed at our Preferred Provider institutions.  Many of our customers establish an account with one of our Preferred Provider banks and then sweep the money into their main corporate account on a daily basis.

What other charges will I have besides your transaction charge for credit card payments?   back

We provide card authorization and data capture so costs associated with those services are imbedded in our fee.  Other charges based on the discount rate and any other transaction fees that are assessed directly against the transaction itself (i.e. taken off the top by the card processor) or billed directly to your bank account by a financial institution are not included in our fees.

Do I need a new merchant account?   back

I hear the terms eCheck, debit transaction, debit card, and EFT (electronic funds transfer) used to describe non paper check payments. Are they different?   back

While they can all accomplish the same purpose, that is make a payment, they are quite different.  EFT or Electronic Funds Transfer is generally used to describe the movement of funds from an account in one bank to an account in the same or another bank.  A well know example is directly deposited pay checks.  Money is moved via EFT from your employers deposit account at their bank to your deposit account at your bank. EFT can be used for both deposits and withdrawals.

When we use the term eCheck, we are referring to an EFT debit. This means it goes through the EFT clearing process without authorization and is settled when it clears the customer’s bank assuming, of course, there are adequate funds in the account. eCheck is also being used to describe checks that start out as paper but are later converted to EFT. The eCheck in our system both start and end as electronic transactions and never exist as paper.

When a debit card is used on the Internet the transaction is handled the same as a credit card, however instead of checking against the available credit line, the system checks against a pre-determined limit based on debit card type. This is different than when you use a debit card at a point-of-sale and enter a PIN to complete the transaction. Then the debit card behaves like an ATM withdrawal and is balance authorized immediately.

What other charges will I have besides your transaction charge for debit card payments?   back

Since we treat all debit card payments the same as credit card payments the same fees will apply.

How fast do I get my money after a payment is made?   back

We send all transactions out a few hours after the end of the day on which the payment is made. Once they have been transmitted the normal financial system clearing times apply.  Generally this is 24 – 48 hours.

What abut customers who pay electronically before a bill is issued?   back

We can handle it; our system will accept the payment as an open payment to the customers account and include it in the stream of payment data we send you.    

Can I show customers all the payment history or just the ones made online?   back

We provide, as an optional feature, the ability to add payments you receive from other sources to eLockbox Payments so your customers can see all of their account activity on-line no matter how the payment was made. 

How does your +Paper option interface to my lockbox?   back

How do I know if someone has signed up for electronic payment?   back

How do I know what payments are made each day?   back

We provide extensive reports on a daily basis which show what payments were made, whether they were credit or debit, and whether they were made by the customer or customer service.

How does the daily payment information get into my A/R posting system?   back

We provide you with a file you can use to update your  A/R (accounts receivable) system.  We can provide this in our standard format or at your request customize it to your specific needs. Most clients are able to post successfully from our standard format.

Does the system provide customers with receipts?   back

If customers send me an e-mail about a bill do I pay a delivery charge like I do for bills?   back

In case of fraud or customer dispute how do I reverse payments, and what does it cost?   back

Can I interface eLockbox Payments to my CRM system?   back

Yes, under a custom services contract we will work with you or your system provider to develop an interface to your CRM system.  In some cases this has work has already been done and we can offer the interface as an optional feature.

I hear not many customers sign up for electronic billing - is this true?   back

The rate at which your customers sign up for electronic delivery, called the adoption rate, is critical to achieving a good ROI on your investment in an electronic bill payment system.  Our system is priced so the system will pay for itself with an adoption rate of approximately 6%. Our customers generally achieve this level of adoption during the first year. Most go beyond it with no problem. We attribute this to our use of e-mail delivery and our fast and easy enrollment.

Why do you offer eLockbox Payments as a separate product?   back

Some of our customers just want to implement a payment system and are not interested in delivery or archival services.  We think this is the wrong approach since it misses chance for real expense reduction.  At the same time we want to be able to accommodate these customers so we make it possible to have just eArchive and eLockbox and add eDelivery at a later date. 

So, one of the benefits of our approach is that you can start with just a payment system and add the customer service and delivery components seamlessly without disrupting information systems operations.

What does eInvoice contain in terms of your other products?   back

Why do you offer this as a service instead of just having customers buy the component eService?   back

What do I give up to get a packaged solution?   back

Nothing, in fact we offer a significant discount for the packaged product.  But it includes all of the major options, and any options it doesn’t include can be added for an additional fee.

Does eInvoice Delivery take a long time to install?   back

The service can install very fast, Based on your active involvement we can have your CTP Solutions electronic bill delivery and payment system installed and tested in as little as eight (8) weeks.  Of course this does not include any changes you might ask us to make to meet your specific requirements.

We have been evaluating CRM systems. Can I use eInvoice Delivery in place of a CRM system and save the money?   back

Realistically how many statements a month to I have to send out before I can justify an CTP Solutions EBPP system?   back

If you send out 30,000 billing documents a month there is no doubt our system is easily justified.  On the other hand if you send out 1,000 billing documents a month it is probably more than you need.  In many cases it depends on the dollar amount of the bills you send and the customer service component of your business.

We have provided a Benefits Analysis  tool on the system that you can download to evaluate the impact an CTP Solutions electronic bill delivery and payment system will have on your business.  Or you can call us and we will be happy to discuss your needs with you and help you evaluate whether an electronic bill delivery and payment system is right for you.

Why do you offer e-billing as a service instead of installing a software product?   back

We believe it enables us to offer a superior solution at a lower cost.  We are experts at what we do – deal with the world of documents and electronic payments.  By focusing on building and maintaining a controlled environment we can insure the reliability, security and availability of the system.  And the cost of the software we developed and the infrastructure we maintain is spread across all of our customers.

If we sold our service as a software product each customer, achieving the kind of efficiency and performance from their systems would require experienced and knowledgeable staff by each client.  This might be reasonable for very large customers, bur for most businesses it is just too expensive a proposition.

Is there any way I can integrate your solution into my Web site?   back

Yes, if you want your customers to be able to access your CTP Solutions payment Web site seamlessly.  We can discuss with you ways in which this can be accomplished .  If you mean adding other material to the EBPP Web site we can review your needs and provide a Change Control document to help you determine if the request will be worthwhile.

As my volumes grow doesn't your solution become very expensive?   back

More importantly, as your volumes grow your savings grow!  You may be paying us a bit more each month but the money you save is significantly greater as well.  And by starting out with a relatively inexpensive setup fee you don’t have to wait years to recoup that expense before you actually start to realize a positive ROI on your investment.

What about overall security - wouldn't my e-billing solution be more secure if I ran it on my own system?   back