Target Skill:

Describe the two EBPP models and list the advantages and disadvantages of each  

Consolidation Model 

Billing Consolidation is the model that provides customers with the “one-stop” bill payment that they want. As shown in the following illustration, a bill consolidator takes the billing information from various billers and presents it to customers that need it. 

The consolidator, who may be associated with a Internet portal,  receives payments from customers on behalf of the billing company and processes the financial transactions. Two types of consolidation are typically found: 

  • Thick consolidation
  • Thin consolidation. 
Thick consolidation means that the consolidator is an opaque divider between customer and billing organization. The consolidator provides the only online point of contact between the two. This model satisfies the customer’s need for time savings, but doesn't provide the in-depth information the customer wants.  Also, it doesn't help the biller strengthen their customer relationships. The thin consolidation model, illustrated on the following page, has been developed to overcome these drawbacks. 

 

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