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

To: Benny Baga who wrote (5650)	7/6/1998 7:58:00 PM
From: MGV	Read Replies (1) \| Respond to of 8545

Jumper and Benny - The AmericanBanker article is representing that Crestar bank was itself paying CKFR 9.95 per customer for providing the bill pay processing to its customers and losing $4 per customer by turning around and charging its customers 5.95. What doesnt make sense is the part about the bank losing billing data to a 3rd party (ie CKFR). With CKFR's model why would it? The part that really raises questions though is the open exchange software/bill pay channel that the bank suggests allows it to bypass CKFR. One of my value assumptions with CKFR is that barriers to entry are getting increasingly higher as it develops the bill paying and presentment infrastructure. If the article's implicit suggestion about this point is accurate, then my assumption of value is inaccurate. That is, Crestar presumes to have taken CKFR out of the equation with its bill pay customers simply by making the investment in the open exchange compatible system it implemented. One other unclear point involves the quote from the Crestar rep about "controlling what is diverted to CKFR" [paraphrase]. What does that mean? Does the Crestar system purport to provide bill pay w/o CKFR or not?

To: Benny Baga who wrote (5650)	7/6/1998 10:54:00 PM
From: micny	Read Replies (1) \| Respond to of 8545

Benny, you're right about the signups...now they'll go directly to Crestar who will do the data input and xmit to CF, rather then CF doing it. Crestar will also become the provider of first level customer service which will relieve a burden, and substantial costs from CF's back. CF won't have to deal with the "my hard drive crashed, what do I do now?; how do I set up a payee?; I can't get my modem working, etc etc kind of question any longer, but will remain responsible to the bank to do the folow up research on payments. Although it will reduce revenues somewhat, the corresponding reduction in CS expenses will represent a net gain for CF.