Frequently Asked Questions
Why haven’t we seen this kind of payment service before?
Most walk-in payment services use small retailers to accept
payments – check cashers, liquor stores, small markets, and bodegas.
To make a payment, a manual process is required, involving such operations as
manual entry of account numbers, or document scanning by customer service
personnel. Large retail chains have been reluctant to introduce this kind
of service in their busy stores, where it would be disruptive and slow.
Before the PayScan® solution, in-lane payment was not practical.
Only an in-lane solution makes sense in mainstream
retail locations, where people do their everyday shopping rounds.
What makes the PayScan® process different from all other
approaches?
In a word: the barcode...and not just any barcode, but
a special kind of barcode, utilizing an algorithmic signature
– an advanced technique protected by a PayScan® patent.
- With traditional barcoded payments, a human decision had to be made before any payment could be accepted: “Does this particular barcode represent a payment that WE can process?” A clerk or customer would examine the bill, check a list of valid billers, and decide: Yes? Or no? This is because a wide variety of barcodes appear at retail checkout lanes, ranging from coupons and gift cards to internal document handling barcodes on bill statements.
- But with every PayScan® payment, a “smart barcode” is used to detect payments automatically – without human intervention. Non-payment barcodes are automatically rejected, instead of generating bogus transactions.
PayScan® technology lets a retailer accept payments confidently in the check lane, using a simple barcode scan just like buying a can of soup. Detection and validation of payments is automated. Instead of asking the consumer or a clerk to take responsibility for this critical decision – deciding whether a bill should or should not be processed for payment – the PayScan® system knows the right answer.
The consequences are wide-reaching. The PayScan® solution is retailer-friendly, using no extra labor or machines. It fits the retailer’s existing sales flow, payment media, and accounting practices. It delivers prompt funds and information to billers. Most important, it lets consumers pay bills when, where, and how they choose.
Why do some existing services take so long to deliver payments?
Many existing in-person payment services accept payments using a key-entry
or scanning device operated by a clerk in a small store. Transactions are
sent to billers in various ways, sometimes even using the mail.
The process is manual-intensive. Some traditional services take up
to four or five days to deliver payment. Although consumers can save a stamp, and
make payment in cash, efficiency and appeal are limited.
Why would some consumers use one of the well-known national payment
services that charge $13.00 or $8.50 to make a payment, when the
PayScan® service can be offered for much less?
Truthfully? We don’t know either.
But we do know why these services are so much more expensive. They are geared for those consumers who must pay immediately, and who are therefore willing to pay a huge premium for expedited service. They have no choice. Because of this “inelastic” demand, these companies are incented to charge as much as the market will bear for their services, to make as much profit per consumer as possible. The PayScan® solution supports a different business model geared for the mainstream consumer. For that market, it is better to charge as little as possible, in order to generate a high transaction volume. In-lane scanning technology, and an efficient, automated network, can then deliver consumer payments and payment data to billers as rapidly as possible, without handling or delays.
What does a service using the PayScan® solution cost?
Very little: Consumers pay a modest charge per payment, comparing
favorably with current trends for ATM fees,
bank service fees, mailing costs, etc.
Do consumers need a computer or have to sign up for the PayScan®
service?
There is no sign-up required, no ID, no bank account, no computers,
no Internet access, no kiosks to operate. Paying a bill with the
PayScan® solution is just like taking a can of soup through the
checkout at your local retailer. It’s that easy.
