CheckFree Corporation (Nasdaq: CKFR) today announced the release of an upgraded download remittance service, a tailored solution that enables small and medium-sized merchants to receive and manage electronic payment remittances that originate from within the CheckFree network of more than 2,000 financial institutions.
The CheckFree solution, built and powered by eBusiness software provider nuBridges, improves the efficiency of electronic bill payment remittances for small and medium sized merchants by automating processing activities that have historically required at least some manual intervention.
The CheckFree download remittance service, introduced in 2005, is currently used by merchants to collectively receive more than 400,000 electronic remittances each month, which equates to more than 4.8 million remittances per year. Upgrades to the existing service were based upon current user feedback, and include enhanced reporting capabilities, the ability to search up to 14 months of payment history and the ability to download payment details in multiple formats.
Millions of consumers pay bills online through their bank, brokerage or credit union each month, generating a substantial volume of electronic payments that must move from the consumer's financial institution to the business being paid. Frequently, smaller merchants are not equipped to accept remittances electronically, necessitating the creation of a paper check for payment despite the fact that the consumer paid electronically.
The CheckFree download remittance service provides merchants with the ability to receive secure electronic ACH deposits directly into their company's bank account, and provides comprehensive payment details that make it easy to reconcile payments with customer accounts. The nuBridges truExchange platform, coupled with nuBridges Collaboration Hub product, facilitates the flow of remittance details to merchants, allowing them to securely access and download deposit information and manage payment processing status through a password-protected online account.
Merchants who implement the download remittance service from CheckFree have the potential to recognize direct financial benefits resulting from:
- Reduced exception management and claim costs as a result of accurate and timely posting of receivables,
- Reduced processing costs and banking fees as a result of fewer paper checks,
- Increased investment income due to a streamlined cash flow,
- Fewer customer service calls as a result of improved customer relationships.
"Small and medium-sized businesses now have the ability to eliminate more paper payments and use the same tools as large businesses to take advantage of the convenience and efficiency of end-to-end online remittance management," said Mark Critchett, vice president of product management within CheckFree's electronic commerce division. "CheckFree's download remittance service allows merchants to receive funds faster and with fewer exceptions, which makes a significant impact on their bottom line. Electronic remittance also results in improved payment speed for a merchant's customers - allowing them to schedule a payment at the last minute that can still be processed before the due date."
"nuBridges truExchange platform was built for high-volume, secure information exchange," said Paul Lockart, chief operating officer with nuBridges. "We're excited that our technology can be used to reinforce CheckFree's already strong relationship with merchants - regardless of the merchant's size or technical resources. It's a practical solution for everyone involved."