Why Are Credit Cards Forcing Online Statements?

Significant Cost Savings

• The most important reason that businesses have been switching away from mailed paper statements and toward online statements is the reduced cost. According to Jim Bruene, author of the Online Banking Report, traditional mailed statements cost $.75 to $1.25 -- or more -- and online statements less than 20 cents in most cases.

Environmental Benefits

• Widespread adoption of online statements will also lead to significant environmental benefits in terms of avoiding all of the energy and waste involved in producing and disposing of millions of paper statements. Many businesses have used a "green" theme to promote the transition to electronic statements.

Another Avenue for Marketing

• Another reason businesses are generally enthused about online statements is the potential for additional marketing. Both the email message that the customer receives as notification of a new statement and the statement itself are virtually guaranteed means to introduce the customer to new products or services.

Current Trends and Future Projections

• According to Striata, over 30 percent of U.S. households used at least one electronic statement in 2005. Furthermore, a 2009 First Data report predicts that total online payments will surpass payments by mail in 2012, continuing a strong growth trend. This rapid growth is largely due to businesses realizing the significant advantages of online statements and rapidly persuading their customers to adopt them.