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

To: Benny Baga who wrote (5663)	7/7/1998 10:40:00 AM
From: Charlie Smith	Read Replies (1) \| Respond to of 8545

Benny: From what I've heard, the $4.00 number is a good one. Pete is trying to hold the line on pricing as he signs new customers and old ones renew. I don't know how successful he is. Charlie

To: Benny Baga who wrote (5663)	7/7/1998 3:04:00 PM
From: Brian K Crawford	Respond to of 8545

<< I was wondering if you any more about the pricing issues. I assume the $5.95 that the banks charge the consumers is not what CheckFree charges the bank (I heard something like $4.00 per consumer). Do you have any additional info that you can share? >> Benny: To add a little to what Charlie has already posted, the $4.00 per customer, per month, number is a good estimate for the average amount CF gets from the Financial Institution for basic billpay service. The base charge is typically for up to 10 payments per month per user. If the customer initiates more than 10 payments, an additional charge per block of 10 payments, typically $2.00 per block, is then passed on by CF to the Financial Institution. If the FI wants CF to handle the front line support, add $1.50 to $2.00 per month, per user. As always, volume drives price and the bigger players do command discounts. As a result, it is very possible for a Bank to offer billpay to its customers at $5.95 per month, with an end user paying 12-15 bills per month, and the Bank winds up with monthly costs of: $4.00 base $2.00 second block of 10 payments $1.50 for first tier support Total costs, $7.50 on revenues of $5.95. The numbers, believe it or not, are a little worse for us small Financial Institutions. My institution (a credit union) is rolling out at $5.95 for up to 15 payments, and $.30 each for any payment beyond 15. Why do we do it? We believe it will pay off in good "sticky" relationships with the best and brightest customers, but we do hope the financial benefits of Genesis will come trickling down to us little Financial Institutions, too. Hope this helps, Brian