Bank drops Internet bill pay service fee

Northwestern Financial Review, Feb 15-Feb 29, 2004

U.S. Bank, Minneapolis, is no longer charging consumers for the convenience of paying bills through its bank web site. In mid-December the bank announced it would eliminate the $4.95 monthly service fee it had charged consumers to use Internet bill pay.

The bank had conducted an online survey of its customers asking them to name the barrier to adopting bill pay. "The customers said it was the monthly fee," said Richard Meszaros, vice president in the product management division. "We know that our customers like Internet bill pay. It saves them time paying their bills on a monthly basis and it simplifies their financial life," he added.

A month after dropping the fee, Meszaros said the increase in usage has surpassed the bank's expectations. he declined, however, to say how many of the bank's customers who bank online regularly have adopted online bill pay. "Obviously we hope more customers adopt the service and begin to use it." Meszaros said.

The change affects new and existing consumer and sole proprietor checking accounts; business checking customers will continue to be charged $6.95 for the first 20 online bill pay transactions per month.