best practices for driving epayment adoption r. braden short, vice president, biller solutions, fis...

Best Practices for Driving ePayment AdoptionR. Braden Short, Vice President, Biller Solutions, FISPaul Hugg, Director of Product Development, Government Payments, FIS

Utility Payment Conference

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Agenda

• Defining the Model• Current Participation Levels• Options for Driving eBill/ePayment Adoption• Case Studies• Q&A

Defining the Model

1. Biller Direct

• Utility (biller) branded Web site– Consumer comes directly to the utilities Web site– Elects to view bill electronically– E-mail/mobile notifications– Multiple payment options

• ACH – from any DDA account• Credit/debit card• One-time, scheduled, recurring, automatic

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2. Bank Bill Pay

• Financial Institution Branded– Internet banking portal accessed by consumer– Elects to receive bill(s) electronically (if available)– E-mail/mobile notifications– Multiple payment options

• ACH account registered with the bank• One-time, scheduled, recurring, automatic

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Current Participation Levels

Biller Direct vs. Bank Bill Pay

• Biller Direct Services Continue to Attract More Payers than Bank Sites – Biller Direct can offer detailed bill presentment– Biller Direct can provide confirmation of payment– Biller Direct can offer multiple payment methods

7Source: Paystream Advisors Inc. Feb 2009

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Analysis – Biller Direct / Bank Bill Pay

• 16 percent of electronic bills are viewed at the biller site• 3 percent of electronic bills are viewed at a consolidator (bank) site

– Present at your site and distribute to gain further eBill penetration and savings

Source: Aite Group

Options for Driving eBill / ePayment Adoption

How to Push Adoption

1. Incent Desired Behavior– eBills

• Consumers need to be motivated• The “What’s in it for me” motivator• Financial incentives are a strong motivator of behavior• Offer rebates for eBills

– ePayments• Free ACH• Same day account posting• Discounts for automatic payment program

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How to Push Adoption

2. Green Factor– 34 percent of consumers said they switched to electronic statements to reduce their

impact on the environment. (Javelin Research)

– 43 percent of consumers said they are more likely to do business with companies they perceive to be green. (Javelin Research)

– Demonstrate the value• Carbon footprint calculators, number of trees saved

– NACHA research• If only 20 percent of American households switched from paper to electronic billing and payment, a

staggering 151 million pounds of paper, 100 million gallons of gas and 2 million trees would be saved annually.

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How to Push Adoption

3. Adoption Marketing– "Many a small thing has been made large by the right kind of advertising.“

• Mark Twain

– Maintain constant focus on your objective• Remittance stub• Statement stuffers• Banner ads• Contests

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How to Push Adoption

4. Personal Choice– Deliver eBill to the consumers desired channel

• Your Web site• Internet banking portal• E-mail• Mobile device

– Provide multiple ePayment options• Web, IVR, CSR• Mobile payments• Unenrolled/enrolled models

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Case Studies

Return on Investment

Average cost of a paper bill is anywhere from $0.60 – $1.55– Depending on volume– Postage, paper, envelope, document composition software

1. Average utility – 100,000 customers– Industry adoption rate 8 percent– 8,000 x 0.60 = $4,800.00 per month savings in print and mail expenses

2. Average utility – 100,000 customers– Aggressive adoption marketing program – 20 percent– 20,000 x 0.60 = $12,000.00 per month savings in print and mail expenses

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Benton PUD

Benton PUD, a municipal corporation of the State of Washington, began providing electrical service in 1946. Today, Benton PUD supports 45,000 electric customers

• Rebate Program– $5.00 credit on next bill for enrolling to eBill– 9 percent increase in eBill adoption in six months

• Success Measured– Paper bill

• Cost of paper stock, postage, design, handling• ~$0.75 - $2.00 depending on volume

– eBill• ~$0.10 - $0.20 depending on volume

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Tampa Electric

Tampa Electric is an investor-owned electric utility. Its West Central Florida service area covers 2,000 square miles and approximately 700,000 customers.

• Aggressive Marketing Campaigns– Printed mail– Remittance stub– White space management

• Industry Average eBill Adoption Rate = 8 percent• Tampa Electric eBill Adoption Rate = 29 percent

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Oct. 18-21

Government Payments: Security & Compliance Strategy Workshop

Agenda

• Security and Compliance– Payment fraud detection and prevention– Payment Card Industry (PCI) Data Security Standards– Regulatory compliance

• Government Payment Needs and Requirements– One step ahead or two?– Unique requirements from the government

• Conclusion

Security and Compliance

• Payment fraud detection and prevention– Tools

• Scrubbing accounts when setup• Prevention of transactional fraud

• Start with the basics• Speed and flexibility

– Best practices• Cultivate a prevention mindset• Seek to exceed requirements

– First-party fraud is still the greatest threat

• Payment Card Industry (PCI) Data Security Standards– Are you required to be PCI compliance if you take credit cards for payments; or is your

vendor?– Who requires these audits and what do they mean?– What are the ramifications of not complying?– Self-assessment (SAQs) versus PCI DSS or PA DSS– Careful selection of partners– Seek partners, not vendors

Security and Compliance

• Regulatory Compliance– Housing and Economic Recovery Act (HERA) of 2008

• History• Rule• Impact

– Dodd-Frank Act and Durbin Provisions of 2010• History• Rules• Impact

– Data Security and Breach Notification Act of 2010 (BILL)– Data Security Act of 2010 (BILL)– Data Accountability and Trust Act of 2010 (BILL)– Data Breach Notification Act of 2010 (BILL)– Personal Data Privacy and Security Act of 2010 (BILL)– Boucher Bill of 2010 (BILL)– Forty-six State Laws

Security and Compliance

• One step ahead or two?– If you are one step ahead you are a leader, if you are two steps ahead you are a footnote in

history– Chance to leapfrog ahead, and learn from the lessons of the last 10 years, but have to be

careful of the bleeding edge– Develop a payment strategy– Channels– Standard payment methods– Alternative payment types– Social media

Government Payment Needs and Requirements

• Unique Requirements from the Government– Payments with wide ranges (from small to large payments within one application)– Regulated

• Cannot raise the fees just because the cost of doing business goes up• Must collect 100 percent of an obligation• Limitations on partial payments or over payments• Unique refund workflow requirements

– Traditionally slow to react to swiftly changing industry– Turn these into positives

Government Payment Needs and Requirements

Conclusion

• Unique Requirements from the Card Networks• Unique Requirements if you are Regulated vs Non-Regulated• PCI Standards• Best Practices• Legislation

• It isn’t one size fits all

Thank You R. Braden Short, Vice President, FIS Biller Solutionsbraden.short@fisglobal.com905-947-9730

Paul Hugg, Director of Product Development, FIS Government Solutionsphugg@link2gov.com 615-665-6711