CheckFree EBill

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CheckFree E-Bill
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Who We Are ...

• 1981 - founded Corporate Services
• 1200 customers in 15 industries
• 1988 - created consumer product
• pay anyone
• use any bank
• PC, touchtone, etc.

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Who We Are ...

• Financial Services Division
• Internet Presence
• Corporate Clients
• Website at http//www.checkfree.com
• CheckFree Wallet
• Consumer Products

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CheckFree is about Electronic Commerce

• 400,000 consumers with bill payment/banking
• 300 financial institutions
• 1995 Volume
• 15.4 billion
• 79 million transactions
• Transact with 6 million consumers and businesses

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CheckFrees Strategic Approach
Consumers
Checkfree Open Systems
Financial Institutions
Businesses
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CheckFrees Strategic Approach
Consumers

• Convenience
• Record-keeping
• Data Analysis

Checkfree Open Systems
Financial Institutions
Businesses
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CheckFrees Strategic Approach
Consumers
Checkfree Open Systems
Financial Institutions
Businesses

• Cost Savings
• Promotions Contact
• Customer Satisfaction

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CheckFrees Strategic Approach
Consumers
Checkfree Open Systems

• Statement Delivery
• Enhance Consumer Product
• Customer Acquisition/Retention

Financial Institutions
Businesses
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CheckFree E-Bill Pilot Overview

• Why?
• Who?
• How?
• What?

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Why A Pilot?

• Marketing Research
• System Design
• Operational Experience
• Customer Care

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Pilot Partners

• Southwestern Bell Telephone
• General Public Utility
• Metropolitan Edison
• Penelec
• Jersey Central Power Light
• Capstead Mortgage, Inc.

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Pilot Partners

• Small Business Administration
• Consumers Power Company
• Cuna Mutual Group

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How the Pilot Works ...
CheckFree capable products contain a private and
secure two-way e-mail system that is used to
support the pilot.
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How the Pilot Works ...
CheckFree solicits the consumer via e-mail
e-mail
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How the Pilot Works ...
Interested consumers respond to
CheckFree via e-mail ...
e-mail
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How the Pilot Works ...
CheckFree sends the Consumer a confirmation, and
the Biller an enrollment file.
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Delivering the Bills!
Biller transmits existing billing file to
CheckFree using any method it chooses.
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Delivering the Bills!

• Account Information

• Recent Account

Activity

• Summary of

Charges
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Delivering the Bills!

• Detail of Charges

• Billing Total

• Customer Care or

Marketing Message
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The Pilot Results - Consumers

• Over 50 of consumers we asked said they want to
  receive their bills electronically.

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The Pilot Results - Consumers

• Over 50 of consumers we asked said they want to
  receive their bills electronically.
• In each pilot, nearly 25 of consumers we asked
  agreed to participate.

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The Pilot Results - Consumers

• Over 50 of consumers we asked said they want to
  receive their bills electronically.
• In each pilot, nearly 25 of consumers we asked
  agreed to participate.
• Almost all participants we asked said they want
  more E-Bills from more merchants.

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The Pilot Results - Consumers

• In a recent survey, over half of pilot
  participants said they were so pleased, they
  wanted to provide a testimonial!

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The Pilot Results - Consumers

• Over 50 of consumers we asked said they want to
  receive their bills electronically.
• In each pilot, nearly 25 of consumers we asked
  agreed to participate.
• Almost all participants we asked said they want
  more E-Bills from more merchants.
• Participants say E-Billers have a clear
  competetive advantage.

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The Pilot Results - Consumers

• In another survey of CheckFree users, 63 said
  the ability to receive credit card statements
  electronically would impact their choice of
  issuer!

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The Pilot Results - Billers

• Billers want their choice of file format and
  delivery method.
• Billers want complete control over the look and
  feel of the E-Bill.
• Billers must have minimal, completely automated
  exceptions processing.

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Market Release

• Selects E-Bill capable Biller from a list
• Views colorful bill with graphics and logo
• Pays bill with a touch of a button
• Views electronic Statement Stuffers and
  interactive advertising messages
• Easy access to Terms and Conditions, and to
  Customer Care information

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Market Release
Consumer selects Biller from a list
and provides account number ...
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Market Release
CheckFree sends the Biller an enrollment file to
flag their system.
confirmation
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Market Release
Biller transmits existing billing file to
CheckFree using any method it chooses ...
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Market Release
CheckFree maps billing data to bill template, and
sends the colorful e-bill to consumers.
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Market Release
The consumer views the bill and sends payment
instructions to CheckFree with the touch of a
button.
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Market Release Prototype
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Market Release Time Line
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Next Steps

• Non-Disclosure Agreement
• Pricing
• Agreement

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CheckFree E-Bill
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Netscape SSL
Uses Public Key Cryptography to perform two
crucial functions
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Netscape SSL
Uses Public Key Cryptography to perform two
crucial functions

• Authenticates each party to the other

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Netscape SSL
Uses Public Key Cryptography to perform two
crucial functions

• Authenticates each party to the other
• Makes transaction and communications
  unintelligible to all others.

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Netscape SSL
Uses Public Key Cryptography to perform two
crucial functions

• Authenticates each party to the other.
• Makes transaction and communications
  unintelligible to all others.
• Both tasks are accomplished automatically, and
  are transparent to the user.

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Public Key Cryptography

• Each party has its own pair of cryptographic
  keys.
• The private key is never revealed.
• The two parties exchange public keys to
  communicate securely.
• In SSL, the key exchange happens automatically.

Public
Private
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Public Key Cryptography

• Messages locked with a public key can be
  unlocked only with its partner private key.
• CheckFree locks the E-Bill with the customers
  public key before sending.
• The customer uses his private key to unlock and
  view the E-Bill.

Public
Private
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How Safe Is Cryptography?

• A message locked with a 40-bit key would take a
  supercomputer 64 years to decipher (SSL uses
  128-bit keys).
• It would take more computing power than is
  currently available on Earth working
  simultaneously for billions of years to derive
  the private key by analyzing the public key.

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How Safe Is Cryptography?

• Breaking a message is computationally
  infeasible - it costs more to crack than the
  value of the message.
• Even if a hacker were successful, he would have
  to repeat all the trouble and expense to crack a
  second message locked with the same key.

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CheckFree E-Bill