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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel?

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To: TLindt who wrote (566)12/9/1998 1:07:00 PM
From: BitWizrd   of 20297
 
The charge depends on who carries the file.

VANS typically charge a "bandwidth" fee with per-Kbyte charges when the monthly allotment is exceeded. These rates are negotiated one by one between the provider and the user. CKFR would be a user, examples of providers include Sterling, CompuServe, Harbinger.

Other methods: Fed ACH costs about 3 cents, MasterCard RPS costs a nickel. VPN or encrypted over the Internet is Free (well, not really, as I suppose someone at CKFR has amortized a portion of their connectivity costs accross a representative volume of bills and payments).

Regarding e-bill charges, I bring you this golden oldie from the old CKFR thread, circa October 7th:

Actually, CheckFree will continue to lose money at $0.30 per transaction until some real volume starts to build up. Once economies of scale kick in, CheckFree will be able to lower that price to make the product even more attractive and still make a profit off of each transaction.

The $0.30 price tag has more to do with the cost of postage than with CheckFree's actual cost. When they began, they sort of ignored the COGS equivalent of the product. They figured if they priced it below first class postage, no biller of any size could possibly object to the price.

Pretty smart. Especially since many large billers may spend close to $3.00 per customer per month on invoicing.


The prodigy who penned this piece of elocutionary genius was ... me!
%^)
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