Electronic Bill Payment and Presentment (EBPP)

What Is Electronic Bill Payment and Presentment?

Electronic bill payment and presentment (EBPP) is a cycle that companies use to collect payments electronically through systems like the Internet, direct-dial access, and Automated Teller Machines (ATMs). It has turned into a core part of online banking at numerous financial institutions today. Different businesses — including insurance suppliers, telecommunications companies, and utilities — rely upon EBPP services also.

Figuring out EBPP

EBPPs come in two types: biller-direct and bank-aggregator. Biller-direct is electronic billing, which is offered by the company giving the great or service. The company gives customers the option to pay bills straightforwardly on their web site and could alert them when a payment is due through email. The customer then, at that point, signs into the site through a secure association, surveys the billing data, and enters payment amount.

The bank-aggregator or bill-consolidator model permits customers to pay bills to various companies through one portal. That is, the service collects various payments from customers and circulates every payment to the proper company. A bank, for example, could offer online users the option to make a wide range of payments like credit cards, utility bills, and insurance premiums. Standalone sites additionally exist that permit individuals to view and pay their bills as a whole. These are called consumer consolidator models.

Some more current EBPP products incorporate highlights like secure email delivery, stored payment data, and autopay. For instance, a healthcare insurance company hoping to streamline its customer billing system might choose to switch to EBPP and permit customers to pay straightforwardly on their website or to have premiums consequently deducted every month. Doing so saves customers the problem of filing desk work and can save the organization on document delivery and processing costs.

A few suppliers permit the development of EBPP systems by building new payment sites for their customers. These could incorporate elements to approve transactions, capture payments, or take into consideration refunds. These systems normally acknowledge major credit cards and can at times get a good deal on transaction processing costs, expanding their revenue and profit overall.

EBPP and Online Banking

Many large banks offer electronic bill payment and presentment services as a part of their online banking system. By and large, online banking, which is now and again called "Internet banking" or "web banking," permits users to execute financial transactions through the Internet. In particular, an online bank offers customers the ability to make deposits, withdrawals, transfers among accounts, and other traditional services, as well as online bill payments, like EBPP.

Convenience is clearly a major advantage of online banking since transactions can occur 24 hours-a-day, seven days every week. On the downside, accounts can be helpless against hacking (despite the fact that it is persistently improving to bank security). Hence, while utilizing online banking, consumers are encouraged to utilize their data plans, instead of public Wi-Fi organizations, to assist with forestalling unauthorized access.

Features

• EBPPs are systems used to electronically collect payments.
• Some more up to date services permit customers to pay every one of their bills from one website and these are called consumer-solidification EBPPs.
• A biller-direct EBPP allows users to pay bills straightforwardly by means of the company's website.
• In the bank-aggregator model, a banking customer can pay several distinct bills from their bank accounts.