CheckFree Amends EBPP Agreement with Bank of America

Friday 5 December 2003 18:10 CET | News

CheckFree has amended its agreement with Bank of America, to update the terms originally announced in April 2000.

The agreement was updated to reflect the rapid growth in consumer adoption of electronic billing and payment at and future, growth- rate projections ahead of those contemplated in the original contract, as well as the economies of scale, and operational efficiencies that CheckFree has achieved. The terms of the agreement are intended to expand the relationship for the duration of the original ten-year contract, which runs through 2010. Specific terms of the agreement were not disclosed, however primary revisions relate to: - commitments to further mainstream consumer adoption, including e-bill delivery and adoption; - adjustments to long-term service pricing. New transaction-based pricing allows CheckFree and the bank to take advantage of economies of scale CheckFree has realized with rapid consumer adoption; - enhancements to CheckFrees industry-leading service level agreements for systems availability and e-mail response times, which bring ever-increasing quality efficiencies to the customer experience; and, - Bank of America relinquishing its rights to five million of the original 10 million warrants outlined in the April 2000 agreement. The banks minimum annual revenue commitments remain in place at $50 million per year.

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Categories: Payments & Commerce | Payments General
Countries: World
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