What is e-billing?

Lots of people are talking about the convenience of e-billing but are they all talking about the same thing when they do?

In traditional "off-line" billing or invoicing, a paper invoice is generated either by writing it out in long-hand, typing it into a word processing or spreadsheet package or perhaps generating it via an accounting software system of some kind. The problem with this approach is that it is time-consuming and typically costs a lot more than sending out the same invoice via the web.

Sending out an invoice as an attachment to an email is often called e-billing but is really not much different to sending out a paper invoice in many ways. There are obviously a few advantages to doing this (not least is saving the paper, envelope and the stamp, as well as perhaps speeding up the process of getting the invoice to a customer). However, there are still some problems with this approach. The main ones are that we may not always be sure that our invoice has got to the right person, or to the person who has the ability to pay it. It is also usually just a "static" document that commonly gets printed out and then treated in the same way as a paper invoice. Even at the mechant end, the email may need a PDF attachment which has to be printed to be kept in a physical file and is still needed for later reconciliation (a nightmare if you are sending out a lot of invoices each month). This is therefore not really a full e-billing solution.

A full and proper e-billing approach is often called a "digital" bill or invoice. In this instance, a bill is made available in a fully interative way in website portal so that the recipent can click on the bill (after viewing it in summary or detail form)in order to pay it (and then save it electronically if he or she wishes). Apart from the benefits of potentially avoiding the need for paper and saving the stamp, and being very quick and cost effective to deliver, the added advantage here is that the bill can be readily sent on-line to multiple people (including those particular individuals with the ability to pay it). In addition there is a full audit trail and reconciliation is made easy for both the payee and the merchant who sent the bill or invoice.