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Electronic
Bill Payment Paper Released If
you’re considering initiating electronic invoice presentment and payment (EIPP),
or if you just want to know what it is and how it works, you will find a new
white paper released by NACHA to be of great interest. EIPP is the
business-to-business version of electronic bill presentment and payment (EBPP)
by which consumers pay bills via the Internet. While both B2C and B2B
transactions have similar processes, the B2B environment is typically more
complex, involving more participants and creating longer, more intricate value
chains. NACHA’s Council for Electronic Billing and Payment’s white paper
analyzes three models for business-to-business electronic invoice presentment
and payment. The
white paper, entitled Business-to-Business EIPP: Presentment Models and Payment
Options, outlines the three current EIPP models— Seller Direct, Buyer Direct,
and Consolidator. For each model, the paper presents an overview, a process
flow, a usage analysis, model differentiators and implementation considerations.
According
to the paper, the motivations for businesses to migrate to EIPP include
shortened transaction cycles, accelerated revenue cycles, improved cash flow
management, increased marketing opportunities, improved productivity, reduced
direct costs (e.g., postage and printing), and enhanced customer service. “The
purpose of the white paper is to provide an objective, educational tool on
Internet-based electronic invoice presentment in business-to-business
transactions,” said Connie Howard, Chair of the Council’s B2B Task Force and
Director of Sales Strategy Development with TriSense
Software. “It is intended to help businesses understand the different
approaches emerging in the market today.” The
white paper on presentment models is Part One of a two-part series. Part Two
will highlight and compare electronic invoice payment options, such as Automated
Clearing House (ACH), credit cards, alternative payment networks, wire transfers
and checks, and is scheduled to be released early in the second quarter of 2001.
The complete white paper can be downloaded from the Council’s Web site at http://cebp.nacha.org.
The
Council for Electronic Billing and Payment was formed in 1993 to act as a forum
to facilitate, educate, and promote the use of electronic consumer-initiated
billing and payment programs and services to all interested stakeholders in the
payments industry. NACHA represents more than 12,000 financial institutions
through direct memberships and a network of regional payments associations, and
600 organizations through its six industry councils. NACHA develops operating
rules and business practices for the Automated Clearing House (ACH) Network and
for electronic payments in the areas of Internet commerce, electronic bill
payment and presentment (EBPP), financial electronic data interchange (EDI),
international payments, electronic checks, and electronic benefits transfer (EBT).
For more information visit www.nacha.org. |
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© Copyright 2001 · The Green Sheet, Inc. |
