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Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: Brooks Jackson who wrote (3931)	5/6/1998 8:57:00 PM
From: Brooks Jackson	Read Replies (1) \| Respond to of 8545

"Price Increase" explained: Below is e-mail from Matt Lewis at CKFR, clearing up (for me at least) the matter of the price increase. 1. Microsoft Money did NOT boost prices. For once our theories about Bill Gates' evil intent prove to be unfounded. The post that started all this was wrong. 2. CKFR itself DID increase prices last June to new, direct customers, so as not to compete with banks. The full story: From: Matt_Lewis@atl.checkfree.com (Matt Lewis) To: brooksj@aol.com Dear Brooks: I read your post in the Silicon Investors Group this morning about an apparent disconnect between our Investor Relations and Public Relations departments in answering a price-related query you had last week. First of all, let me apologize for any confusion this may have caused you, and allow me to clear this issue. Two CheckFree associates in our Investor Relations area were asked to research the price matter. The first response to you states that "CheckFree has not had a price increase. We do not know how banks structure their pricing and we are not informed if/when they have a price increase." The person who made this response mistakenly assumed that you were quoting a customer of a bank that had raised its price -- not a direct CheckFree user through Microsoft Money. In June of last year, CheckFree increased its direct customer rates from $5.95 per month for 20 bills to $9.95 per month for 15 bills paid electronically. This rate increase affected only direct users -- those people who use programs such as MS Money and Quicken, and who contract directly with CheckFree for bill payment. Also, this rate increase only includes new direct customers that signed to the service after June 30, 1997. Our reason for this move is to encourage these users to choose online banking and bill payment options through their banks. In most cases, the rates charged by banks will be lower than the standard CheckFree rate. (Banks may charge the same rate CheckFree does, or more if they so desire. That is unlikely, however.) The second response you received states, "A lot of letters were sent out in error in regard to the price increase." Mr. Nighswander, whom you quote in your initial message, received one of these letters. His rate is not being increased from the $5.95 per month level at this time since he is among the group of direct customers (it's actually a relatively small number of people) who are "grandfathered" into the original pricing. Again, changes in the price only apply to direct CheckFree customers, and not to online banking customers. We are taking the appropriate steps to inform customers who received incorrect information.