ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Saturday, April 26, 1997 TAG: 9704280040
SECTION: BUSINESS PAGE: A-9 EDITION: METRO
SOURCE: JEFF STURGEON THE ROANOKE TIMES
In the Roanoke Valley, the new payment centers that are running include nine Kroger stores.
The power company is adding payment locations in some grocery stores as it stops accepting your money at some of its offices and banks gradually cease being payment centers.
American Electric Power Co. said Friday that its move is a response to banks phasing out their handling of utility payments and the arrival of new technology that allows bills to be paid in stores, even on the day they are due. The banks often did not have computers linked to customer accounts, but the new payment centers do.
There is evidence that banks got out of handling bills because it simply didn't pay. When First Union Corp. bought Dominion Bankshares Corp. of Roanoke in 1993, it dropped the bill-handling service for utilities, saying it received too little pay for its efforts, First Union spokesman David Scanzoni said.
AEP said it would prefer that customers pay by mail but wants to keep a number of walk-up payment locations available. Electronic technology has allowed AEP to arrange for about 100 new payment locations in Southwest Virginia, about 75 of which are accepting payments now.
At each, AEP has hired the BuyPay payment service of Travelers Express Co. BuyPay stations accept a variety of utility payments and are staffed by an employee of the business in which they are located. A computer enables the attendant to credit accounts instantly. This service is expected to be popular with people who pay at the last minute. AEP charges a late fee equal to 1.2 percent of the outstanding balance.
In the Roanoke Valley, the new payment locations that are up and running include nine Kroger supermarkets. Some banks also have signed up to serve as BuyPay centers. They include all three locations of Valley Bank and some locations of First National Bank of Rocky Mount.
"These businesses are conveniently located, have adequate parking, operate longer hours and [more] days per week than our AEP offices," the utility said.
For that reason, AEP will stop accepting payments June 13 at eight of its offices in Southwest Virginia, including Rocky Mount, Pearisburg and Wytheville. AEP offices in Roanoke, Christiansburg, Pulaski and Fieldale will continue to accept customer payments.
LENGTH: Medium: 51 linesby CNB