BillFloat Inc, a San Francisco, California based bill payment company officially launched services as of this week. According to BillFloat, they are the first micro-credit solution offering people more time to pay their bills by extending the time consumer’s need to pay their bills. Their services support thousands of billers (service providers) such as AT&T, Verizon, DIRECTV, Comcast, Dish Network, and other: telecom and cable providers, insurance companies, auto leasing companies and utility companies.
The company is backed by PayPal technology and investment. So if you find yourself in a tight situation and cannot come up with this month’s bill, BillFloat services will help you avoid those late fees, service terminations and high overdraft fees. The service is not meant for those with mortgage payments. On average the payment rage for bill is between $50 to $300 and BillFloat does not deal with recurring payments. The company’s fees ranges from $4.95 to $10 per transaction. Consumers do not pay on late fee and there is no interest incurred.
BillFloat’s services are similar to Bill Me Later which grants consumers credit to make online purchase by delaying payments until later. This type of service is ideal during economic hard times when more people are pinched for cash. BillFloat has received $4.5 Million in investment from PayPal Inc, Venrock, First Round Capital, Baseline Ventures and others.
BillFloat utilizes MasterCard Inc, and a mix of other payment networks and accounting systems to move money around electronically. They continue to add more direct connection to help speed up the process of moving money around. For customers to pay back, the company utilizes the Automated Clearing House Network (ACH) to collect payments via direct debit. A smart marketing idea the company has is to have service providers that are utilizing their services to have them featured on their website to increase awareness of the company’s brand.
And like all things dealing with consumers and online payments, the possibility of fraud is high but it is very minimal when it comes to online bill payments. BillFloat uses ID verification database to authenticate their users by asking for their Social Security Number, their address, name and other information to verify their identity.
Source: BillFloat.com and Digital Transactions