A wannabe competitor one-ups CKFR's guarantee (sorta):
Online Resources Calls On All Internet Banking Providers to Offer Highest Guarantee
MCLEAN, Va.--(BUSINESS WIRE)--Sept. 13, 1999--Online Resources & Communications Corp., (NASDAQ: ORCC) a leading provider of Internet banking services, today called on the industry to provide air tight consumer bill pay guarantees.
Online Resources' guarantee is to pay unlimited late payment fees and penalties if properly scheduled bill payments are not received by the biller on time.
"We applaud Checkfree's initiative to offer an online bill pay guarantee," said Online Resources CEO Matthew P. Lawlor. "As the industry's pioneer of real-time debiting for bill payments, we've been able to offer a materially superior guarantee ever since we launched our service in 1992."
Online Resources, whose ATM-based system has propelled it to a leadership position as a bill paying processor, already offers the industry's quickest online bill payment guarantees. If a biller accepts electronic payments, ORCC guarantees the bill will be paid in two business days. Fifty-three percent (53%) of ORCC's bill payments are made electronically. That figure is believed by the company to be the highest in the industry.
Importantly, because Online Resources only works on behalf of financial institutions and does not offer a direct-to-consumer service in competition with them, its institutional clients automatically limit consumer losses to $50 for unauthorized transactions, in accordance with the industry's "Reg E" standards.
Online Resources protects consumers in another unique way: No bill payment will be made unless there are guaranteed funds available in the consumer's bill pay account. ORCC checks the consumer's checking account the moment the bill is to be paid and debits the account at that time. If there are not sufficient funds in the account, the bill is not paid and the consumer is notified of the shortage and offered an opportunity to deposit funds. Thus, no online bill payment results in an overdraft and subsequent charges.
"Now it's time for the entire industry to offer these kinds of guarantees, which are needed to reassure consumers of the safety, security and efficiency of online bill payments," Lawlor said. "Such initiatives will help foster additional growth and ultimately benefit consumers."
Online Resources & Communications Corporation
( orcc.com ) is a leading outsourcer of privately-branded Internet financial services for regional and community banking institutions. The McLean, Virginia-based company has more than 375 institutional clients nationwide. The company provides consumer bill paying and banking services, and aggregates lending, insurance, securities trading and investment services. Online Resources performs real-time processing through its patented EFT gateway and full customer service for client institutions, giving them a comprehensive "hub" solution from a single vendor. Client consumer marketing programs are conducted under the bankonline.com co-brand.
This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specific factors that might cause such a difference include, but are not limited to: the company's history of losses and anticipation of future losses; the company's dependence on the marketing efforts of third parties; the potential fluctuations in the company's operating results; the company's potential need for additional capital; the company's potential inability to expand the company's services and related products in the event of substantial increases in demand for these services and related products; the company's competition; the company's ability to attract and retain skilled personnel; the company's reliance on the company's patents and other intellectual property; the early stage of market adoption of the services it offers; consolidation of the banking and financial services industry; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the company's Registration Statement on Form S-1 as filed with the Securities and Exchange Commission.
CONTACT:
Griendling Communications
Media: Robert Griendling, 703/978-4686
bob@griendling.com
or
Investor: George Northup, 703/394-5100
gnorthup@orcc.com |
