Does ‘Going Paperless’ Have Advantages?

Whether or not you conduct your business online or not, you may have noticed the increased offers from your creditors to go paperless. Companies are pushing for customers to ditch the paperless statements and receive their monthly bills and statements online via email or by logging in to their account.

It is beneficial for companies to lose the paper because it cost money for the paper, postage, envelopes, and manpower to prepare and send out thousands of account information each month to every customer. While it does make a lot of sense for customers to declutter their lives by having less paper to deal with, only a small percentage – around 15% – of consumers have switched to online billing statements and payments.

Companies Push Incentives

Since the numbers of customers moving to paperless billing is so low, companies are working to make incentives that are beneficial to the customers. Some examples of the offers put on the table to go paperless include:

For every person who signs up for paperless billing:

• Consumer names are entered into a giveaway for a chance to win thousands in cash or luxury merchandise.
• Consumers are directly paid small transition fees.

Some companies used negative tactics to get customers to switch including:

• Consumers were charged small fees for continuing to receive paper statements.
• Consumers were restricted to certain online features for not subscribing to the paperless billing system.
• Consumers can only view account information online if they decline receiving paper statements.

Many consumers were still hesitant to switch over to electronic accounting. Being forced to go paperless left many people angry and companies had to find better methods for making paperless billing more attractive. Research discovered more people were apt to convert if the message was right.

Consumer Advantage

While many companies still offer incentives to switch to paperless billing, the system itself is still beneficial for consumers.

Less Filing – Typically, you can keep statements for 6-12 months online. By receiving less mail, you have less filing to do. You always have the option to print statements for later filing.

Instant Access – You no longer have to wait for a statement each month. This can help you keep tabs on fraudulent activity and your own spending at any time you wish.

Better Scheduling – With online bill pay, you can make payments in an instant and save money on the stamp, the check, and the trip to the post office. Log in and pay bills as needed or set up your account for automatic bill payments. You never have to be late making payments again.

Online Advantage – You may have access to information and tools through your online account that you don’t get with paper statements.

Environmental Concerns – By not accepting paper statements, there is more energy conservation and less waste in your own household.

Security Concerns – Ultimately, security issues may be the root of consumer’s wariness to convert to paperless. Companies are investing in top-notch security measures to keep your information safe. By going paperless, you also reduce the risk of security breeches with your paper statements should you not dispose of them properly by burning or shredding your statements.