Sears Selects TSYS Invoice Billing Capability for Its Commercial Cards
Columbus, Ga., March 10, 2003 - Sears, Roebuck and Co. (NYSE: "S") has signed a long-term processing agreement with TSYS® to service the company's commercial cards. Sears is the first client to use TSYS' TS2® platform's Invoice Billing functionality, a commercial transaction processing platform that allows corporate clients to decrease costs and increase efficiency by managing account data such as transaction and payment history at the invoice level versus the traditional balance level. Corporations can remit payment for specific transactions on their bill versus a balance or portion of a balance. Invoice Billing is also a significant benefit to the retailer because it essentially provides them with an invoice-level billing system for their commercial retail customer.
This functionality increases TSYS' penetration into the business-to-business (B2B) bill and invoice market valued at $8.5 trillion — more than three times the consumer-bill-payment market at $2.6 trillion, according to Tower Group.
"Billions of dollars are spent each year on costly, paper-based invoice systems, and this new capability delivers tangible efficiency to corporations," said Stanley Pipes, TSYS group executive. "Corporations want to manage at the invoice level because it is a better way to manage cash flow and allocate payment to specific transactions. This system is the first to leverage the advantages of open-network card systems with the flexible terms and payment allocation of invoice-level billing."
Future invoice billing development scheduled for third quarter 2003 will:
- incorporate invoice-level terms such as net billing in which the company receives a discounted percentage off the transaction's face value if the transaction is paid by an agreed-upon early payment date established by the buyer and seller. The discount amount as well as the number of days until the transaction is due will be established at the transaction level and will be based on relationships between the manufacturer/seller and the corporate buyer.
- include additional pricing options for each invoice such as deferred billing, deferred finance charge, same-as-cash billing and fee assessment based on individual transaction-due dates.
- include an Internet-based solution designed to allow the buying company the opportunity to view details of open and closed invoices real time, including level-three details provided with the transactions, as well as payment history details such as how a payment was applied across multiple invoices.
Companies will also be able to originate payments as well as allocate payments to specific invoices. This functionality will significantly reduce costs associated with payment research for both parties, etc., thus providing even more value to the customers.
Since 1999, TSYS has processed Sears 74 million retail and co-branded MasterCard accounts. TSYS serves more commercial card accounts than any other third-party processor. TSYS is also the largest processor of retail accounts in the United States serving 18 percent of the market. In addition to Sears, TSYS processes for some of the most recognized retail brands including Sears Canada, Nordstrom, Target, Canadian Tire and Circuit City.
About Sears
Sears, Roebuck and Co. is a broadline retailer with significant service and credit businesses. In 2002, the company's annual revenue was $41 billion. The company offers its wide range of apparel, home and automotive products and services to families in the U.S. through Sears stores nationwide, including approximately 870 full-line stores. Sears also offers a variety of merchandise and services through its Web sites, www.sears.com and www.landsend.com, and a variety of specialty catalogs.
About TSYS
TSYS (NYSE: TSS) (www.tsys.com) brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe. Synovus (NYSE: SNV) owns an 81-percent interest in TSYS. For more information, contact news@tsys.com.
Contacts:
Danita Gibson-Lloyd
TSYS Media Relations
706.649-5578
dglloyd@tsys.com
Leo S. Berard
TSYS Investor Relations
706.649.5220
leoberard@tsys.com