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September 24, 2009 8:16 AM PDT

Why all the requests for paperless billing lately?

by Candace Lombardi
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Feel like just about every utility, bank, and service company you use is asking you to sign up for their paperless option?

It's not your imagination. And you're about to be inundated with even more requests to opt-in to paperless communications, according to an IDC survey released Thursday.

Ninety-two percent of the 300 U.S. companies in IDC's "Green IT & Sustainability Survey 2009" said getting customers to move from print to online services is a goal they hope to initiate within 12 months.

The survey also shows an increased interest from companies in implementing green practices as a way to take advantage of their growing IT infrastructure. About 46 percent in the new survey said it was the second most important factor driving sustainability practices, compared with 31 percent in a 2008 survey.

The trend is attributed to the budget squeeze being placed on IT managers and their desire to show executives they're maximizing assets, as companies look to save money.

"Because they understand that much of their expanding infrastructure remains underutilized--adding to their company's capital and energy costs--green IT policies can help establish a more comprehensive approach to utilizing their assets," Vernon Turner, senior vice president of IDC's Enterprise Infrastructure, Consumer and Telecom Research, said in a statement.

Saving energy, of course, remains the No. 1 reason companies are adopting sustainability practices with 64 percent of the respondents surveyed citing it as the most important factor in their decisions.

IDC surveyed 1,653 companies in Australia, Brazil, China, France, Germany, Japan, Mexico, Spain, the U.K., and the U.S. That included the 300 surveyed in the U.S. The survey represented a cross-section of industries that included banking, manufacturing, health care, government, and transportation.

In a software-driven world, it's easy to forget about the nuts and bolts. Whether it's cars, robots, personal gadgetry or industrial machines, Candace Lombardi examines the moving parts that keep our world rotating. A journalist who divides her time between the United States and the United Kingdom, Lombardi has written about technology for the sites of The New York Times, CNET, USA Today, MSN, ZDNet, Silicon.com, and GameSpot. E-mail her at candacelombardi@gmail.com. She is a member of the CNET Blog Network and is not a current employee of CNET.
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by ittesi259 September 24, 2009 8:43 AM PDT
I work for a large utility in Southern California and our company is very heavily encouraging online billing for our customers. Heck at a recent meeting we as employees were encouraged to do it with data showing if just 10,000 employees (about 60 percent of the company) did we'd save like 50,000 in postage costs and save over 7 tons of paper. We happen to serve about 5 million customers....so do the math.
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by mjacobson99 September 24, 2009 10:28 AM PDT
Southern California Edison should use Zumbox and offer another paperless mail option!!!!
by catbutt5 September 24, 2009 11:05 AM PDT
Part of my bill includes the cost of paper and postage for receiving that statement each month.
If I sign up, is my bill going to go down proportionally? I doubt it. Like is was said above... for every person that signs up, it just extra profit each month.
Why do companies that push electronic bills think that consumers wont notice that we're now getting less for the same amount of money each month?
Wouldn't you notice?
by carlhage September 24, 2009 1:48 PM PDT
Website logins, complex menus, and tedious downloading is no substitute for mail-- either electronic or paper.

The reason I don't like paperless statements/billing is that not a single offering (except my web service provider) actually sends me the statements electronically. Instead, I get an email message saying I have 90 days to to login to a web site, access a bunch of menus, then download (and sometimes print) the statement. This is a royal pain-- it typically takes much longer to do all this than to open a paper envelope, read it, and stuff in a shoebox, and if I don't do it within a certain time, I lose it. Also, my bills are paid automatically via credit card or bank transfer, and for some services this is canceled with online billing (I have to login and click to pay).

If companies offered to actually send me the statement itself as an email attachment (or even better as ASCII text), then I would gladly subscribe. They also need to agree to save and make accessible the statements for 7 years-- not 90 days.

One might cite security as a reason to not send statements, but most all email readers can accept signed and encrypted email messages-- it's just waiting to be used.
by giodude82 September 24, 2009 8:49 AM PDT
that's great. we don't really need paper anymore. I got rid of all my paper bank statements and stuff like that. it's expensive, useless and not environment-friendly. I can't wait for the e-newspaper to replace the newspaper!
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by anichka5 September 24, 2009 9:02 AM PDT
But do you now how to get the last 7-10 years of your bank statements online when the IRS comes to call? I do a lot of online banking and some of my bills are paperless, but as someone who works with technology every day, I don't think I completely trust the the current systems in place to not lose stuff. Nor do I think that everything is private out there on the Internet. Saving energy is good, saving paper and trees are good things to do, but I'm not ready to throw my hat into the ring when it comes to copies of my mortgage payments, banking records, and a few others. And I already read my newspaper online..
by myles taylor September 24, 2009 9:07 AM PDT
I agree we could probably cut out probably 80% or more of the paper we use, but we still need paper. We could use a lot less paper, yes. However, there are some things that need to be on paper still.
by mrcockrell September 24, 2009 9:37 AM PDT
@anichka5 & myles taylor

so why can't you just save your bank statements in PDFs yourself? who said just because you dont get your statements on paper you don't have to manage your own files

i'd be wiling to bet you could even use PDFs instead of paper when the IRS comes to call or whatever

nothing really needs to be on paper anymore unless its an official document like a birth certificate or needs a signature and even a lot of those things can be done digitally now
by RDO CA September 24, 2009 8:57 AM PDT
If I am to accept online billing I would have to print my statement many times and it would now be my ink and time and paper so I think a monthly credit would be in order to the ones doing online billing
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by SteveChicago September 24, 2009 9:39 AM PDT
Why would you have to print your statement? Let alone "many times". The whole reason for it being online is so you do not need to have a paper copy.
by Renegade Knight September 24, 2009 10:59 AM PDT
@SteveChicago

The whole reason for it to be online is to save the cost of paper, prep, and postage. It doesn't change the needs of the customer who may prefer a file copy instead of an electronic one, or who likes the automatic reminder to pay a bill, or who like having their bill come to them instead of having to log on to an account they don't wan't to retrieve a file.
by d21mike September 24, 2009 9:05 AM PDT
"Saving energy, of course, remains the No. 1 reason". I believe that cost savings are the true No. 1 reason but that would not sound as good.
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by myles taylor September 24, 2009 9:06 AM PDT
I love this. I groan every time I see one of those huge bills; and not because of the money. ;) I got FiOS installed last week and they gave me this huge paper packet with all this info on it. All of that info I could have got online (I signed up for internet!) and I can't imagine the impact when everyone does this. We still need paper; just not near to the extent we have it.
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by September 24, 2009 9:13 AM PDT
So where is my savings? I pay these companies a fee for their service and they want me to do all the stuff online but are not willing to pass the savings on to me - why should I do this? Oh yeah - the IRS does not take electronic copies as proof of anything.
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by mrcockrell September 24, 2009 9:45 AM PDT
i'm pretty sure i have filed my taxes electronically for years
by scarface74 September 24, 2009 10:20 AM PDT
I use to work for a document management company the IRS will accept electronic copies and even scanned documents as long as no modification was made to the scanned document besides deskewing (straightening the image) and despeckling.
by SteveChicago September 24, 2009 9:46 AM PDT
Institutions that do have online billing need to make sure that they keep my records for the 7 years as dictated by the gov and then be able to print me an "audit pack" for a given year.

What is worse is the utilities only seem to keep records for 6 months. How can I see my energy trends over a year? But I guess they do not want me to use less product, do they now.

Lastly, lets stop having the only way to stop getting a paper statement is if we sign up for their account withdrawal plan. My eBank can send payments electronically to them at my bidding. I do not want some company yanking cash out of my accounts, I do not trust them enough for that.
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by svgtom September 24, 2009 10:02 AM PDT
I think something should be done about the companies that now charge you to send you a paper bill. T-Mobile now charges $1.50 a month if you still want to receive a paper bill. This is totally unfair. There are still a lot of people (elderly, poor, etc.) who don't have computers, as well as people who don't trust giving out bank account information. The notice I received from T-Mobile about the change indicated that the fee charged may not equal the actual amount it costs them to send a paper bill.
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by Renegade Knight September 24, 2009 10:56 AM PDT
The issue here is the spin. Your plan costs a specific amount. Call it 100.00. That price includes the cost of paper. Then wheny they jack the price up with a paper fee, they are double dipping on that cost. They should be giving you a discount on your plan to go paperless. Apparently the fee is more profitable.
by fletchb September 24, 2009 11:30 AM PDT
T-mobile tried to do that to me but you had to Opt-out to avoid the fee. You can't trust any of these big companies anymore.. Even worse was Country Wide who switched me over *without* any notice. I complained and they fixed it but I had to wonder if they were doing that to try and generate late fees. I wonder if it's even legal to switch people without notice. Finally like some of the other posters say...if it's really that big of a deal, then why not discount my bill if I agree to go electronic??
by cvye September 24, 2009 10:10 AM PDT
replacing a 30-50 yr renewable carbon-neutral resource with a non-renewable coal-based one is not green.
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by freemarket--2008 September 24, 2009 1:52 PM PDT
Do you honestly believe it takes less energy to create and deliver a paper document than a digital one? The document has to be processed and stored electronically in either case.
by September 24, 2009 10:24 AM PDT
i heard some companies charge a "convenience fee" for e-billing - not only they save on paper but also milk their customers! is that true?
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by Renegade Knight September 24, 2009 10:55 AM PDT
What I've seen is a fee to keep getting a paper bill. Heck I've seen fee's now to get paid in legal tender or a check instead of direct deposit or wose on a debit card.
by Been_there_Saw_it_before September 24, 2009 12:59 PM PDT
Yes, it is true. California DMV is the worst offender. They get the money with no need to handle my envelope, deposit my check, read and process the transaction, AND pocket the $4.00 convenience fee. I send them a check instead. Let them do the work.

Lets see our Governator fix that!
by jltnol--2008 September 24, 2009 10:36 AM PDT
Trust me... it's ALL about the money and NONE of it about being green.
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by September 24, 2009 10:43 AM PDT
If a tree was supposedly saved by electronic billing and nobody can find it on Google Earth, was it really saved? Saying that adopting e-billing saves trees is like saying eating Rice Crispies saves corn.

For more, see my article: "Does paperless billing really save trees?" www.bit.ly/44P571
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by BrianSemper September 24, 2009 10:43 AM PDT
Been following this topic awhile. I tend to lean towards it more a money saving thing than a being green thing. Paper is a renewable resource where upwards of 70% of it is recycled. Computers are not recyclable and consume a lot of energy.

Another thing rarely mentioned is all the tree farms. If paper is not needed I suspect all that land would quickly be deforested and made into condo's or some other type of use. No way would the land owners take their income properties and let them sit idle as they pay taxes on them.

A counter point is found in this article.

http://www.printingnews.com/print/Printing-News/The-Green-Report--Does-Paperless-Billing-Really-Save-Trees/3$11141
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by Renegade Knight September 24, 2009 10:54 AM PDT
For now paperless is crap. They typical encouragment to go paperless is because companies accounce "we are going to start charging you for paper" . However paperless really means they send you an email reminding you to log in to yet another stupid site for which you neen yet another stupid password (which increases your security risk) to get your "paperless statment" which you then need to print out.

What I want is for email to be improved to the point where my "Paperless statement" can be emailed ot me directly. I don't want to log in, I don't want yet another online account, I just want the same convenience I already have.

That's why I don't switch and the problem companies need to solve. Email me my statement directly using a secure method. Then yes, I'm on board.
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by qpzmal1029 September 24, 2009 12:13 PM PDT
I agree that companies should be able to send my bill or statement to my email directly (do they think email is less secure or reliable than snail mail? I don't get it) but I would rather log in than receive all of that paper that I have to organize or dispose of.
by RDO CA September 24, 2009 12:24 PM PDT
I agree they need to do it so it will come in an e-mail and can be saved to be printed when and if neccesary and give a credit to you for accepting the electronic statement.
What do you do with no paper if they make an error on the bill and you call Joe the CSR that looks at your bill and agrees that a mistake was made and he will give you a $50 credit and here is the confirmation # for you to keep. Now you have no paper to make the note on as to the details he just gave you. In 2 months when the credit has not come thru and you are calling again you have no bill wih the notes to look at.
by fidodogbreath September 24, 2009 1:40 PM PDT
Email is not reliable enough for bills, whcih would harm my credit score if I did not receive one or more of them. The spammers have ruined email reliability by forcing providers to use increasingly aggressive spam filters.

Sometimes mail from people in my address book ends up in my spam folder. Twice in the last week, people have asked me about emails they sent me that I never received at all. These failures occur on multiple accounts from different providers.

It goes on. I currently cannot send email to anyone @ hotmail.com or live.com from my Yahoo account, which has NEVER been used to send spam. Boom, rejected due to "spam-like characteristics," no appeal, no way around it other than to send mail from a different domain. Hello, M$ just went into a huge joint venture with Yahoo for search, and they're blocking Yahoo Mail?!?!? ***????

I hate to say it but at this point I trust snail mail more than email.
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by kharris September 25, 2009 8:56 AM PDT
This would be great if they ALL the companies sent their bills to my bank and I paid through my bank site. While I can pay all my bills through the bank, I cannot RECEIVE all the bills through the bank. So to see the statements I either have to receive paper or login to each biller's site individually. It would be great to see the bills from my bank site.
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by xyzmo_SIGNificant November 25, 2009 4:13 AM PST
We are happy to recognize that according to more and more analysts Green IT is a major Strategic Technology for 2010 and digital signatures (going paperless) become an important part of that. For example in a presentation at the Gartner Symposium ITxpo 2009 in Cannes Gartner analyst David Cearley stated clearly that Green IT means more than energy efficient IT. IT can enable many green initiatives and thus greatly enhance an enterprise?s green credentials. According to Mr. Cearley common green initiatives include the use of e-documents to reduce the consumption of paper for operational and regulatory-compliance-related activities. e-Documents can also serve as the beginning step to facilitate collaboration among geographically disparate parts of the organization.

You can read more in the following blog article about how digital signatures contributes to that: http://blog.xyzmo.com/en/blog/2009/08/27/sign-green-with-xyzmo-significant/
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