Renewed push for pay-by-phone

Article Abstract:

Banks, such as Chase Manhattan and Citibank in New York, are introducing bill-paying services by phone as part of its efforts to save on operational costs. If more customers pay bills by phone, banks can cut back on maintenance expenses of about 50,000 branches, and the equipment and staff needed to process more than 56 billion checks annually. An electronic payment can cost the bank and customer about 25 cents while written checks can amount to 79 cents each, all costs considered. Chase Manhattan, which started the service in 1990, reports good response from its customers but declines to provide specific numbers. Citibank introduced the service in its New York branch and is targeting about 200,000 of its 1.2 million customers. Monthly fees range from $2.50 at Chase and $6.50 at Citibank. A similar service is offered by Checkfree Corp of Columbus, OH.

Automation, Product introduction, Telephone systems, End users, Telephone System, User Need, Billing/Invoicing, New Technique

---

Bills to pay? The number is ..

Article Abstract:

Approximately 250 banks now offer pay-by-phone services, according to Bruce A. Burchfield, chairman of National Payment Clearing House, a business that offers bill-paying services for banks. Telephone bill-paying was introduced in 1973, but many banks that have offered the service have been disappointed by costs involved and lack of customer response. Bill paying services will become more attractive to consumers as they become more concerned about ways to save time instead of money, and the cost of a first-class stamp rises from 25 cents to 30 cents. Citibank recently introduced an 'enhanced telephone,' which is a specially designed product that comes with a miniature viewing screen and a keyboard, facilitating bill-paying and other banking activities. The phones cost $49.95 to install, with a $9.95 monthly rental fee.

Telephone communications, exc. radio, Information retrieval services, Innovations, Officials and employees, Telephone companies, Beliefs, opinions and attitudes, Information services, Telephone, Telephony, Electronic funds transfer systems, Home banking, Home banking services, Chase Manhattan Bank N.A. (New York, New York), Telephone Company, EFTS, Burchfield, Bruce A., Kelly, Donald Q., National Payment Clearing House Inc.

---

Banks looking more closely at their credit card holders

Article Abstract:

Banks are learning, in their credit card businesses, how to avoid customers who are bad risks. Computers make it possible for banks to compile statistical measures, or 'scores' for customers, as the customers use their accounts. According to Robert D. Dutton of First Data Resources Inc, there are 48 characteristics by which an account can be measured. These include characteristics such as: how often monthly payments are for the full amount owed; promptness to pay; whether the card is used for purchases or cash advances; and frequency of use. Thomas C. Lynch, who heads the credit card business at Chase Manhattan Bank, observes that the computer allows a consistency in judgments, in circumstances where millions of accounts might be involved, that would otherwise not be possible.

Commercial Banks, Bank credit cards, Credit Authorization

Similar abstracts:

• Abstracts: The push for a healthy system. Can't-treat-the-blues blues. Questions about Q fever
• Abstracts: One-two punch for PC makers: market pummeled at top and bottom. Silicon Valley is changing programs
• Abstracts: Sony's newest portable is an electronic book. A CD advance starts a new battle; the MD, or mini disk, can record as well as play
• Abstracts: 4 major phone companies report increased profits. United Telecom falls 55% and stock plunges; GTE gains. GTE profits up 20.2 percent; United Telecom down
• Abstracts: A 'Baby Bell' outgrows its siblings. 3 Bell units post gains in profits

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.