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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: james m. schultz who wrote (1353)	1/16/1999 8:16:00 PM
From: kamo	Read Replies (1) \| Respond to of 20297

Form s-8 filed with sec 1-14-99. Is it important? - Peter J. Kight Chairman, President and Chief Executive Officer CheckFree Holdings Corporation 4411 East Jones Bridge Road Norcross, Georgia 30092 (770) 441-3387 (Name, address and telephone number of agent for service) ---------- Copies of Correspondence to: Robert J. Tannous, Esq. Porter, Wright, Morris & Arthur 41 South High Street Columbus, Ohio 43215 ---------- CALCULATION OF REGISTRATION FEE ---------------------------------------------------------------------------------------------------- Proposed Maximum Proposed Maximum Amount of Title of Securities Amount to be Offering Price Aggregate Offering Registration to be Registered Registered Per Share* Price* Fee* ---------------------------------------------------------------------------------------------------- Common Stock, without par value............. 3,000,000 $21.6875 $65,062,500 $18,087 ---------------------------------------------------------------------------------------------------- *Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(h), based upon the average of the high and low prices of CheckFree Holdings Corporation Common Stock as reported on the Nasdaq National Market System on January 8, 1998. This Registration Statement shall be deemed to cover an indeterminate number of additional shares of CheckFree Common Stock, without par value, as may be issuable pursuant to future stock dividends, stock splits or similar transactions.

To: james m. schultz who wrote (1353)	1/17/1999 3:23:00 PM
From: Benny Baga	Read Replies (2) \| Respond to of 20297

>>>Is that worldwide? No, just in the United States. >>>Does that include the latter 15 billion paper bills? I don't believe so. >>>Is the cost related to business payments in the same ranges as above? The cost of business to business bill (cost per bill) is higher due to the lower volume of bills, more detail and customization. >>>It seems to me that monthly fees per customer, and transaction fees is where the money and future is, and has yet to be realized on a large scale, how can this be quantified? Not sure this totally answers your question but it should help... bai.org A flash point for criticism is CheckFree's long-standing policy of charging most of its banks on a per-subscriber as opposed to a per-transaction basis. While CheckFree assesses some institutions 50 cents a transaction, the usual fee is $4 per retail subscriber per month. Banks had no trouble accepting this when transaction volume was low. But as volume picks up, "that pricing model becomes more difficult to justify. It certainly encourages the financial institution to look at technology to control costs," says Richard Bell, senior analyst with the Tower Group. Banks such as KeyCorp and the former CoreStates Financial Corp., for example, have adopted technology that allows them to either route bill payment transactions to less-expensive service bureaus, or alternatively to process the transactions in-house. Some analysts look at this trend, combined with the number of pilot signups MSFDC is attracting, and conclude that CheckFree's prices will inevitably have to come down, pressuring the company's profit margins. Others counter that CheckFree's drive for economies of scale can reduce costs enough to compensate for lower margins. "The concerns that people express are focused specifically on the price side without taking into account the cost side," says J.P. Morgan's Archibold. "We expect pricing to decline over time, but we don't believe it will become draconian. The cost side, meanwhile, will probably decline more rapidly." Kight defends the subscriber-based pricing as necessary to defray CheckFree's huge upfront investment in bill payment infrastructure. "We wish it was a lower cost to us as well," he says. Even so, the executive concedes, "in the long run, we're headed towards a much smaller subscription fee and more of it being transaction-based." Benny