When letters laced with the poisonous substance ricin  were sent to President Obama, Mississippi Senator Roger Wicker and Judge Sadie Holland last month, a screening process quickly intercepted them before they reached the Hill or the White House. The system was set up after the anthrax incident in 2001, and has since screened and tested suspicious envelopes. 

Now, Everett Dutschke, the man suspected of sending the letters, is currently in federal custody and awaiting a decision by a grand jury this month. The letters were traced to his home in Mississippi, and when ricin was found, Dutschke was placed under arrest.  

This incident comes at a time when the U.S. Postal Service is facing numerous financial woes, as it adapts to declining mail volume as email and other communication forms grow. Still, despite these attacks and the USPS's financial instability, the service has remained efficient and safe. For those that rely on the service, such as individuals who send checks or companies that receive high volumes of mail, the decline or end of the USPS could create a much bigger disruption than anticipated. 

The USPS since 2001

After the anthrax attacks killed five people in 2001, an article in Medill Reports explains that the service cracked down with new security mechanisms. Now, of the billions of pieces of mail that are sent each year, the amount that are found with poisonous chemicals is low.

"USPS places a high premium on protecting its employees, customers, facilities and the mail," Chicago USPS spokesman Mark Reynolds said to the news source. "We are proud of our record in this area, and working with the U.S. Postal Inspection Service and our other federal, state and local partners, we are confident that the mail will remain safe throughout the foreseeable future."

Reynolds said that 160 billion pieces of mail were sent through the service last year, and 2 trillion since anthrax was found in 2001. Last year, he explained, there were 3,300 reports of suspicious items in the mail, and 161 were found to have a potentially explosive substance, like a powder or liquid, and there were no injuries or deaths. 

"While customers should use common sense when handling mail, the mail has remained essentially safe since the anthrax attacks," Reynolds said.

Where is the USPS heading? 

Even with the major changes the USPS is undergoing–trying to end Saturday delivery, losing funding due to the increase in email and other digital forms of communication–Number Sleuth points out how much work the service does each year, in an infograph titled "A World Without the Post Office."

The service, which handles 40 percent of the world's mail volume, has 212,530 vehicles, making it "one of the largest civilian fleets in the world." The USPS also processes 438,000,000 pieces of mail per day, has 152 million delivery points and employs 8 million workers. 

Even as the volume of letters and packages declines each year, the USPS still handles a large portion of the mail and it was found last year to be the best in the world in terms of efficiency by Oxford Strategic Consulting, a British consulting firm. The company looked at the postal services within the top 20 global economies. 

For high-volume billers that accept payments by check–and almost all will as long as checks exist–the mail service is vital. And for individuals, an end to this service as we know it would mean an end to paying by checks, forcing some to change their payment methods. Despite the worry that the service may eventually become insolvent, its important to remember the impressive reach of the USPS and the effects that a major shake-up of the service. 

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For residents of tornado alley–the region between the Rocky Mountains and Appalachian Mountains–the spring can be a frightening time. The warm weather often brings dangerous storms and tornadoes to the area through the summer months, as well as other deadly weather. Residents of Granbury, Texas know this especially well. This week, at least 10 tornadoes hit Granbury, about an hour outside of Dallas, and neighboring towns, causing at least six deaths and many more injuries. 

For stores or offices damaged in a storm like this one, being able to quickly recover is often the determining factor in staying in business. To avoid succumbing to weather and other disasters, financial institutions and high volume billers can partner with disaster recovery services before a storm to get back on their feet if something happens. The recovery process for this storm, however, could take years.

Tornadoes wind speeds reach 200 miles per hour

According to the New York Times, the region saw a tornado more than a mile wide, which brought with it hail the size of softballs on Wednesday, May 15. Though at least 10 tornadoes were sighted, it's possible that there were more, as the National Weather Service is still conducting its official count. Heavy rain and some hail began at about 6:30 p.m., and the first tornado touched down before 9 p.m. Those in the area had a little more than 20 minutes once the tornado warning was issued to find shelter, the article said. One of the storms was classified as an "EF-4," meaning winds could have reached 200 mph.

Cleaning after the storm

Crews continued to look for those who could have been buried in the rubble the next day, using bulldozers and search dogs in the process. At least 100 homes were damaged, leaving more than 250 people homeless.

"Bits of sheet metal hung from power lines and wrapped around trees, some of which had been stripped of leaves and branches so that they resembled toothpicks," the Times said. 

Some homes saw their roof completely blown off, while others were flattened in the winds. Granbury resident Elizabeth Tovar told USA Today she and her family were in a bathtub when she looked up to see her roof gone. When many came out of their homes, the saw downed power lines, trees and other destroyed properties. 

Other less-populated areas also saw major effects from the storms, including damage to homes and barns in Millsap, about 40 miles outside of Fort Worth. 

Preparing for future weather disasters 

For business owners, tornado season can mean damaged equipment and lost customers, depending on how quickly it can recover. Specifically, for financial institutions that process payments in- house, storms can often force your equipment and machines to go offline. Instead of shutting down, either temporarily or permanently, business continuity consultants can provide banks with a backup site, so they are able recover quickly and retain all current clients and revenue.

With so much revenue based on payment processing, it's important to have as much protection as possible, especially as extreme weather becomes the norm, as evidenced already this year. By working with disaster recovery services, financial institutions can keep their company running regardless of what storm is headed their way.

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When Amazon.com launched in 1994, the retail world changed forever. An e-commerce option that has continued to remain relevant and powerful to this day had been introduced to consumers.

With this online shopping site, the payment industry evolved alongside it. Different methods of paying online, including PayPal and V.me have helped make the checkout process efficient and secure for online shoppers, and mobile wallets like Google Wallet and Square have changed how consumers pay in stores. 

With so many new developments in the past few years, Market Platform Dynamics, a payment consulting firm, put together a report titled "2012: The Year in Payments," looking at, unsurprisingly, the growth of the payment industry in the past year.

Mobile payments

Market Platform Dynamics CEO Karen Webster explained that in 2012, one of the biggest themes was the increase of mobile payments.

"Payments innovation fueled by the IP-enablement of devices used by consumers and merchants to interact drove payments innovation into high gear," she said. "Players large and small flooded the market with new applications, new business models, and new approaches to transforming the shopping experience. As a result, there was no shortage of news, blogs and commentary related to what was happening in payments and the new ideas being introduced to the consuming public."

Major payment players

The report divided the "newsmakers" of 2012 into five catagories: 

• Incumbents (major banks, credit card companies, payment processors)
• Established innovators (PayPal, Google)
• Mobile operators 
• Startups
• Mashups (such as Mastercard acquiring startups)

In particular, the report said, Square and PayPal made huge jumps last year. Square joined with Starbucks to offer Pay With Square in all stores in August of last year, attracting more mobile wallet users. That same month, PayPal and Discover announced a partnership to allow customers to pay with their PayPal accounts in stores that accept Discover. This will be fully completed this year, making it one of the only payment methods that can be used "across all major channels," the report notes. 

Another major player in the payment industry in 2012 was WalMart. The company teamed up with American Express to create Bluebird, a reloadable debit card targeted to the underbanked and banked populations, and began offering more mobile payment options, including iPhone self-checkout stations in stores. Customers can scan their purchased items on their phone, and quickly check out when leaving the store. 

Using mobile payments to drive sales 

As more customers become comfortable shopping with their phones, retailers are catching on. Many stores are using deals through Facebook and social media sites – known to some as "F-commerce" – to lure shoppers back to brick-and-mortar stores, while others are offering services like free WiFi to compete with increasingly attractive online options. 

At the same time, the report noted, using rewards schemes isn't exactly a new idea, and just because more stores will accept mobile payments doesn't necessarily mean that customers will turn to this method. However, with mobile payments, shoppers have all the necessary items in one place - their phone - instead of carrying around cash, credit cards and a checkbook like they did in the past. 

"Digital wallets, just so that we are all on the same page, are digital 'containers' that aggregate lots of things that are now in the physical wallet – payment cards, loyalty cards, coupons, passes, checks, even identification," according to [I can't recall which source this is]. "That means that, in theory, a digital wallet would aggregate single use mobile payment apps, like the Starbucks app, the Level Up app, the Uber app, etc., along with existing issuer-specific payment cards."

Regardless, for merchants and consumers, 2013 could present as many changes to the payment industry as did 2012, with new developments from Discover and PayPal, WalMart and Square in the works. As payment methods adapt to new technologies and innovations, major businesses can work with payment processing companies to keep up. 

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The United States Postal Service has been through quite a lot in the past few years.

With the rise of the internet and email, the number of letters sent through the mail has been declining for years. During the recession, the number of packages that went through the USPS also decreased, as fewer people purchased goods online. Adding to its woes is that the USPS is also required to add about $5 billion each year to a fund for healthcare benefits for future retirees, but doesn't have access to the money once it's in the account. This has turned out to be one of its costliest problems, as the USPS has been working, unsuccessfully, to gain access to the money.

Collectively, these have all contributed to losses of about $25 million per day, Reuters has said, and more than $16 billion in all of last year. Though it's an independent agency, it does receive some help from the government, forcing it to come under regulations by Congress including how often it delivers mail and where its offices are located. However, with these extreme losses, it has said that if it doesn't receive some sort of help, it will be forced to shut down in October of this year –  a scary thought for businesses that rely on the USPS for mailings and billing. 

To prevent this fate, the USPS has been working to convince the government to agree to some cost-cutting ideas. We reported in February that it would be ending Saturday delivery, which would save $2 billion annually. It also has been working to close offices in rural areas, and shorten the hours of other offices. 

So far, both ideas have been shot down by decision makers. Specifically, the USPS had asked that a provision that requires six-day delivery not be included in a recent bill. However, the bill, with the provision included, made its way through both the House and Senate and was signed by President Obama at the end of March.

"Although disappointed with this Congressional action, the (USPS) will follow the law and…delay implementation of its new delivery schedule until legislation is passed that provides the Postal Service with the authority to implement a financially appropriate and responsible delivery schedule," the agency said about the decision. 

Closing offices was also dismissed. According to an article in Time Magazine, the USPS planned to shut down 4,000 offices to reduce costs, "but after objections from a number of House members from rural districts, the Senate passed legislation forbidding the closure of any post office that's more than 10 miles from another branch."

Now, it's uncertain what the next steps will be. Reuters pointed out that the language used in the provision is somewhat vague, potentially allowing the service to move to five-day delivery without Congressional approval. Other cost-saving methods, including higher postage rates, fewer hours for rural offices, and, potentially a five-day delivery schedule, may soon be on their way to help keep the USPS afloat. 

For businesses that rely on the mail for billings or sending checks, these uncertainties could mean potential challenges – especially if the USPS finds itself without any funds this October. Postage increases may require customers who currently pay by check to find other methods, bringing down the already declining number of check-paying individuals. 

Instead of gambling on the  future of the USPS, businesses can instead outsource to payment processors. Since some customers will continue to pay by check, using a third party to process  payments is often more cost-effective than processing in house. As changes in the USPS alter the way payments are sent, payment processors can help businesses focus on their company instead of the uncertainty of the Postal Service. 

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In the past six months alone, almost all areas of the country have experienced some form of extreme – and unique – weather events. Hurricane Sandy brought down homes, roller coasters and caused more than 100 deaths in the U.S. alone, not including an additional 100 in Haiti and the Caribbean. Winter Storm Nemo arrived in February of this year, bringing additional damage to the Northeast, causing nine fatalities and more damage, some to the same areas still healing from Sandy.

This April, both Colorado and the Midwest experienced spring snowstorms – creating avalanches in Colorado that killed five snowboarders and causing car crashes in states that weren't prepared for winter weather. 

The relatively low number of deaths from the February snowstorm was credited to government officials taking all necessary precautions – a lesson they learned from Sandy. While fortunate, this also means that if this pattern of extreme weather continues – as the New York Times has says it will – more energy and resources will be needed to prepare for disasters. The news source explained that worldwide, climate changes are causing not just extreme temperatures, but extreme weather: bush fires and heat waves in warmer countries like Australia, more rain in Britain, and historic winters in China and Russia this year.

Again, as this is becoming the norm, what it means to prepare has taken on new meaning. However, this is causing problems for both government officials working to clear the roads or put out fires, but for residents trying to stay safe and secure. Residents of New Jersey waited months to receive insurance checks for businesses and homes, and many lost priceless valuables.

Insurance companies prepare for new weather patterns

For the insurance companies that provide fire, flood or other home and disaster-related protection, this increase in extreme weather may be bringing in new customers, but also more claims. Consequently, many insurance users have seen their premiums increase, as well as their policies change. 

An article in the Toledo Blade said that for weather-related changes in Ohio, insurance companies are rethinking how they do business. 

"However, the increasing frequency of catastrophic weather events over the last three years — including some that affected Ohio in general and northwest Ohio in particular — are causing some in the insurance industry to adjust their climate-risk models and consider establishing a new baseline for weather events in the future," the article read. 

Many insurance companies have been increasing their rates, to the point that lawmakers are beginning to be involved. U.S. Rep. Frank LoBiondo introduced legislation that would phase-in an increase in rates over the next eight years by 12.5 percent. This would alter last year's new mandate, the Biggert-Waters Flood Insurance Reform Act, which created a 25 percent increase over four years, according to the Philadelphia Inquirer. 

"My bill appropriately balances the goal of making the NFIP solvent with the real financial concerns of those facing steep premium increases and protecting the taxpayers' interest," he said in a statement. 

For businesses, this news also means a need to invest not just in insurance, but disaster recovery systems. For banks that process checks, insurance can help recover the necessary finances, but replacing or fixing the check and remittance processing equipment can't be overlooked. Because this machinery is vital to a bank's services, partnering with business continuity services can help banks recover quickly and efficiently in the event of a severe weather event or other accident. 

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3 Point Alliance announced this week that it would be opening a new payment processing facility this July outside of Chicago. 

The new facility will be located in Rolling Meadows, Illinois, nearby both O'Hare International Airport and Carol Stream USPS Regional mail processing facility. The company's new location has been created to serve the remittance processing needs of customers in the Midwest with their expanded multi-site wholesale and retail lockbox network. The facility adds to current locations in Philadelphia, Seattle, Saint Paul, and Clifton, New Jersey.

"3 Point Payment Processing will offer our full suite of electronic and paper-based remittance processing services at the new facility," 3 Point Alliance co-founder and president Rich Daidone said in a press release. "The Rolling Meadows facility is a key part of a strategic initiative to expand our wholesale and retail lockbox network and reinforces our commitment to remittance processing."

The Clifton-based business is made up of four different companies: 3 Point Payment Processing, Qwinstar Corporation, Equipment Leasing Organization and Business Continuity Services. Collectively, 3 Point Alliance provides accounts receivable solutions for businesses that receive a high volume of checks. 

For businesses that currently process payments in-house, 3 Point Alliance's remittance processing hardware and proprietary software can be customized for the most accurate and efficient solution. 

Additionally, 3 Point Alliance can also provide the maintenance needed for check processing equipment and disaster recovery in case of weather or other related disasters that may cause payment processing center to go offline. 

"Our prospects and clients have been encouraging us to establish a payments processing center to support the Midwest region. We are very pleased to meet their needs," Norm Grunberg, the company's co-founder and president, said. 

The post 3 Point Alliance opening Chicago payments facility appeared first on 3 Point Alliance.

Strategically located minutes from both O’Hare International Airport and the Carol Stream USPS Regional mail processing facility, the new location will expand the company’s multi-site wholesale and retail lockbox network to serve the remittance processing needs in the Midwest market.

“Our prospects and clients have been encouraging us to establish a payments processing center to support the Midwest region. We are very pleased to meet their needs.” said 3 Point Alliance, co-founder and president, Norm Grunberg about the expansion.
Rich Daidone, 3 Point Alliance’s co-founder and president, added “3 Point Payment Processing will offer our full suite of electronic and paper-based remittance processing services at the new facility.”

He further added, “The Rolling Meadows facility is a key part of a strategic initiative to expand our wholesale and retail lockbox network and reinforces our commitment to remittance processing.”

3 Point Alliance has facilities in Philadelphia, PA, Seattle, WA, Saint Paul, MN, and Clifton, NJ.

About 3 Point Alliance
3 Point Alliance is a pioneer in the development and deployment of vertically integrated remittance processing software and hardware, business continuity services and financing for in-sourced and out-sourced payment applications. Our four companies — 3 Point Payment Processing, Qwinstar Corporation, Equipment Leasing Organization and Business Continuity Services — create innovative, efficient and cost-effective accounts receivable solutions for our customers. Our wholesale and retail remittance service centers provide flexible, scalable solutions across many business categories including finance, utilities and cable companies. To learn more, visit: http://www.3ptalliance.com

Contact:
Gary Smith, National Director of Sales
3 Point Alliance
215-378-7312
http://www.3ptalliance.com
gsmith@3ptalliance.com

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For more information about this conference, visit:
www.paymentconference.com/Exhibitor.html

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It's no secret that the payment industry has been rapidly changing recently. Trends, including falling credit card use and increased reliance on prepaid debit cards, have become the new norm, and different methods of paying, such as with mobile wallets, have become so popular that the FDIC has said it will be taking a closer look into this market in the next year. 

With so many new innovations in the past decade, the phrase "the only constant is change" comes to mind. For some businesses that accept these types of payments, outsourcing to payment processors, instead of adjusting in-house processes to account for the future of payment solutions, is preferable. By turning to payment processing companies, major businesses that accept payments, especially by check or other declining methods, may instead choose to outsource to adapt to the every changing payment industry. 

CEOs explain what's most important in the payment industry 

This year, PYMNTS.com began its "2013 CEO Series," in which the site asked CEOs of companies in the payment industry "how they view innovation, change and growth." Mike Dubyak, the CEO of WEX, a corporate payment company that deals with healthcare and payroll payments, explained that most industry professionals underestimate the pace of change, and can, as a result, fall behind competitors. 

"At WEX, we realize that payments can be delivered in various ways around the globe," he said in an interview. "At a high level, we see physical, virtual and digital cards all having relevancy in various markets and geographies. We also see different types of delivery of the payments solutions, such as smart cards, mobile, chip and pin, magnetic stripe, and digital and virtual methods. There is no guarantee that a particular form of delivery will be adopted worldwide due to barriers in many markets that may not encourage it."

Articulating customers' needs

Dubyak also explained WEX is especially in tune with its customers' needs and expectations, allowing it to better provide payment services and even change their services to meet these needs. He also explained that often times customers may not even know what they want or need, but businesses can nevertheless still articulate what may be expected. The more communication the company has with its customers the better these can be anticipated.

"We apply what we learn from our customers and combine that knowledge with external forces to introduce unarticulated, innovative solutions into the market," Dubyak said.

Businesses can apply this advice in a number of ways. With so many new payment options available to consumers, companies that accept both old and new forms of payments may be better off relying on those that can understand the needs of the changing industry – such as payment processors – and focus on their respective products and solutions. 

Whether outsourcing check processing needs as volume declines or adapting to other types of payment innovations, in an environment with such a rapid pace of change, businesses may be best preparing for future, currently unknown payment options. Further, as check volume declines, such as paper checks, processing these payments becomes costlier. Not only do payment processors know the best technology for the adapting industry, but they can lower costs as well – something that will only grow more important as this trend continues.

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Major legal and demographic changes in the U.S. are forcing some hospitals and healthcare facilities to scramble, either now or in the future. Between an aging population – baby boomers are causing the number of Americans over the age of 65 to double by 2030 – and the Affordable Care Act (ACA) - helping more Americans receive health insurance and be covered under Medicare - hospitals will have their work cut out for them. Consequently, many are outsourcing to payment processors that can more efficiently manage billings.

But the changes don't end here. Other medical requirements, such as the impending ICD-10 coding changes, may encourage those that haven't already begun using payment processing companies to do so. 

Understanding ICD-10 codes

The ICD-10 diagnostic and procedural codes will be replacing the currently used IDC-9 codes, and they are required to be in place by October 2014. 

The Centers for Medicare and Medicaid Services (CMS) has gone to great lengths to inform healthcare providers where they should be in the ICD-10 adoption process. As the calendar turns to April, practices only have 18 months to display effective use of the new coding set, which will be the first overhaul of the system since the 1970s.

There are massive clinical and administrative requirements that must be met before next year, since ICD-10 has ramifications on both arms of a practice's workflow – the clinical and administrative sides. Given these changes, and the previously mentioned expected surge in patient volume as the ACA takes full effect next year, practices need to consider outsourcing some administrative responsibilities to payment processors.

Finding additional billing resources

Further steps also need to be taken though, which is why the CMS has been so upfront with its recommended timelines for adoption. EHR Intelligence recently posted its own analysis of the CMS' deadlines.

"With a strong management team in place, an informed staff, and adequate funding, April is the time to start reaching outside of your organization and make sure that your vendors and payers are adequately preparing for the new technical requirements involved in the conversion process," the news source reported.

Practices seem to understand the importance of adhering to these timelines, as 87 percent of respondents to a recent HIMSS survey said that they expected to meet the October 2014 deadline. The same survey determined that ICD-10 is the most important priority for healthcare organizations, with the related topic of upgrading billing systems the third-most cited concern.

Even with these fears, there's both time to prepare and resources available to ensure that no hospital – or patient – is left behind. As EHR Intelligence explains, "Establish a detailed plan, focus on internal and external communication, and clear your billing backlog before October 1 to prevent the need to process ICD-9 transactions during the rush to perfect your ICD-10 workflow, prepare for Stage 2 meaningful use, and cut costs in your practice."

Additionally, Becker's ASC also put together a list of questions facilities can ask their vendors to determine what needs to be accomplished, including "Is there a phased implementation?" and "Does your company provide any customer support or training?" By working with other service providers, practices can ensure that their legal obligations will be met when October 2014 arrives.

Part of any practice's strategy for coping with an influx of patients needs to include some attention being paid to streamlining administrative processes. Just as facilities need to take a more discerning look at clinical workflows, billing practices must be analyzed and revamped if necessary, and outsourcing to payment processors can help healthcare practices achieve this. 

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