CheckFree Leverages Existing POS Gear for Walk-in Bill Payments

Looking to bolster its business with retailers, Atlanta-based CheckFree Corp. this week unveiled its CheckFreePay Link service aimed at helping stores draw more walk-in traffic by offering bill-payment services for local utilities and other billers. CheckFree Pay's existing CheckFreePay network has 11,000 agent sites located in check-cashing outlets, grocery stores, and other retail locations. CheckFree expects the new service to gain traction with more retailers because it works off of existing point-of-sale equipment and doesn't require new hardware or even a software download. “We really tried to make it simple for them,” says Steven LaBella, CheckFreePay business unit executive. Retailers will need to do “some IT work” for which they'll get instructions from CheckFree. But LaBella says it shouldn't be a complicated matter for medium and large retailers. “The target audience is 25 or more stores; they don't require as much [systems] integration” as-mom-and-pop stores, he says. Retailers will be able to designate which of their POS locations will accept bill payments. The company launched the service this week at the National Association of Convenience Stores convention in Las Vegas. CheckFree's pitch boils down to more foot traffic and fees. By offering bill payments to outside firms such as utilities, telephone companies, banks, and others, “you're actually drawing people into your store,” says LaBella. CheckFree expects most retailers will charge $1 to $2 for the service. Fees will be split between the retailer and CheckFree. CheckFree hasn't announced any customers for the new service yet, but “there's a lot of chains out that we're looking to penetrate,” LaBella says. “We certainly hope to make a few announcements in the coming months. The reason we developed the product was because it was asked for.” Current CheckFreePay retail clients include about 200 Kroger Co. grocery stores as well as a number of regional chains that use CheckFree's stand-alone terminal. About 65% of CheckFree's walk-in bill payments originate as cash transactions, according to LaBella. With check payments, CheckFree initiates the deposit process for the paper check on behalf of the client, or converts the item to electronic transactions. Electronic conversion will not be immediately available with CheckFreePay Link, but will be added later, according to LaBella.