EnergyBiz - November/December 2007 - (Page 57)

From the customer’s perspective, an RP program also offers tangible benefits. In addition to the convenience and security of knowing the utility will be paid on time—without the hassle and cost associated with writing, mailing, or delivering paper checks—a customer might earn a free vacation out of a year’s worth of utilities payments made via RPs linked to a payment card with a travel rewards component. information may be edited automatically for accuracy and received in one consolidated payment and posting file. Streamlining the payment process can result in significant cost savings and greater efficiencies for utility providers. What drives the impressive return is the network, which functions as a central hub that collects payments from multiple sources and routes them to connected billers. With its single connection, the network offers billers and lockbox providers access to virtually every consumer who pays bills via an online banking site. Moreover, consumer bill-pay service providers and walk-in payment companies also connect with the network, allowing billers to electronically receive payments from these sources as well. Allowing Consumers to Pay Their Way, Including Online In addition to payment card acceptance and RPs programs, utilities may also accept electronic payments online. An online payment program allows the customer to submit payments directly through the utility company’s site or through a consolidated bill-paying site, such as the company’s bank or financial institution. A 2007 Jupiter research study on consumer preferences for paying recurring bills found that 54 percent of consumers now pay recurring bills online—more than half the percentage who pay by writing and mailing checks. The online payers use a variety of methods, including one-time payments, RPs, payments made via direct transfer from a DDA account, and payments made using a credit or debit card online. Connecting with a sophisticated electronic payment processing network can help utilities streamline online payment processes and save money by providing a single channel to virtually all consumers who pay bills electronically through their online banking services. For utility companies, that eliminates the tangle of multiple one-off payment originators and Automated Clearing House (ACH) connections. Instead, they receive one consolidated payment and posting file. Working with an electronic payment processing network also eliminates the inefficiencies and lowers the costs associated with processing paper exception items from lockbox providers. By connecting with MasterCard’s Recurring Payments Payment Solution (RPPS), customer account Adopting Electronic Payment Solutions Across all service industry segments, billers are working to identify means of moving toward effective customer self-care, and electronic payment solutions are a great first step in this direction. Development Introduction To capitalize on the The Adoption electronic payment Life Cycle opportunity, utility providers must deliver clear, concise, and Growth Maturity consistent messages on their Web sites and in their direct mail and telephone solicitations that reinforce the fact that they accept credit and debit cards for bill payments. This also requires a commitment to customer education, marketing, and communication programs regarding the electronic payment options available to customers, including online payments and recurring payments. tHougHt lEadErsHiP – sPonsorEd By MastErcard WorldWidE www.energycentral.com E n E rgyB i z 57 http://www.energycentral.com

Table of Contents Feed for the Digital Edition of EnergyBiz - November/December 2007

EnergyBiz - November/December 2007 Contents Continental Grid Vision Needed Readers’ Views and Opinions Next for National Grid Clearing the Air The Need for Nuclear Energy Trade Status Report The Innovators California On The Leading Edge FERC Sparks Change Getting Coal Right Leadership in Times of Turmoil Innovation Delivers Return A Tale of Two IPOs LNGs Bright Prospects Generation Techologies The Age of Superconductors Leaders with Vision Get Ready for Plug-in Hybrids Betting on Batteries Cost of Decarbonizing Nuclear Helmsman – A chat with Dale Klein, Chairman of the U.S. Nuclear Regulatory Commission Global Energy Snapshot; Low-Income Energy Help; IT Spending Robust; The Greening of State Regulators; Generating Support Simplifying Offshore Wind Regs Chasing Construction Costs Energy Agency Sets New Course Deregulation Means Higher Rates Go-To Staffer Nightmare in Manhatten

EnergyBiz - November/December 2007

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