What Does Electronic Bill Payment & Presentment Mean?

Electronic Bill Payment & Presentment (EBPP) is a process, which companies use to collect payments via the Internet, direct dial access, Automated Teller Machine (ATM), or other electronic method. Electronic Bill Payment & Presentment is a core component of many financial institutions' online banking offerings.

Two types of EBPPs typically exist: biller-direct and bank-aggregator. Biller-direct refers to electronic billing, which the company providing the good or service directly offers. Bank-aggregator refers to paying multiple bills electronically through a bank. Many industries, including financial service providers, telecommunications companies, and utilities use Electronic Bill Payment & Presentment (EBPP) services.

Understanding EBPP

New Electronic Bill Payment & Presentment products include features, such as secure e-mail delivery and use in business-to-business (B2B) e-commerce.

For example, a healthcare company looking to streamline its customer billing system may decide to switch to EBPP. Doing so saves customers the hassle of filing paperwork and the organization 50% on all document delivery and processing costs. Customers are able to pay one time or recurring fees, along with service fees. Some entities can even use the service for integrated treasury management.

Some providers allow the development of EBPP systems by building new payment sites for their customers. These might include features to authorize transactions, capture payments, and/or allow for refunds. Usually, such systems accept all major credit cards, including Visa, MasterCard, Amex, Discover, Diners, EnRoute, and JCB. At times such new systems can save enterprise money saved on transaction processing and increase revenue and profit overall.

EBPP and Online Banking

Most large banks will offer Electronic Bill Payment & Presentment services as a part of their online banking system. In general online banking allows a user to execute financial transactions via the internet (e.g. comfort of his or her home, if necessary). Online banking is also known as "Internet banking" or "web banking." An online bank offers customers deposits, withdrawals, transfers between accounts, and other traditional services, as well as online bill payment, such as EBPP. Convenience is a major advantage of online banking; transactions can take place 24 hours-a-day, seven days a week. Some disadvantages of online banking include accounts being vulnerable when it comes to hacking (although banking security is continually improving). Consumers are advised to use their data plans, rather than public Wi-Fi networks when using online banking, to prevent unauthorized access.