Will bioterror fears cause late payments?

The spate of anthrax mail contaminations could mean your bill payments will take longer to reach their destination.

As the postal service struggles to find ways to keep employees and the public safe from bioterrorism, it's likely that procedures will be implemented that could slow mail delivery.

Deputy Postmaster General John Nolan says there are only isolated delays so far, primarily in areas of the country where anthrax has been detected in mail facilities.

But, as the anthrax problem grows, seemingly every day, so may the slowdowns.

Two of the major credit card issuers, Bank One and Bank of America, say they're not seeing any delays in terms of credit card payments.

"We're monitoring it, and if there are any slowdowns from certain ZIPs we'll process them as if we had received them within the normal delivery time," says Bank One spokesman Stan Latta.

American Express spokeswoman Judy Tenzer also says her company hasn't seen any significant delays recently.

While many people will opt to mail their payments a little earlier to avoid possible late fees, some consumers, who may have shied from electronic bill payment before, are giving that a second look.

Mike Rodgers, senior vice president for credit at Saks department store, says they've seen a major spike in the number of customers accessing their account online.

"We used to average 1,300 visitors a day to the account area of our Web site. A few days ago it spiked to 2,300 to 2,400 daily," says Rodgers.

Saks pre-enrolled everyone who has an account with them. All customers have to do to access their account information online is plug in their account number and the last four digits of their Social Security number. They have the option of reviewing their bill and paying it online if they wish.

"I think it's a temporary thing and the mail will be safe again," says Rodgers. "But some customers may not feel this way and we're lucky enough to be able to give them a choice. Customers have thanked us for having it available."

Electronic payments on the rise?
The industry association that's pushing electronic bill payment thinks the anthrax scare may encourage more people to switch from paper checks to electronic payments.

"In 2000, there were 2.2 billion direct payments used to pay bills," according to Michael Herd of the National Automated Clearing House Association. "That's growing by about 17 percent a year. It's a significant number of bill payments. The people who do use it probably use it for multiple bills.

"But we have a long way to go even at 2.2 billion. That's just 12 to 15 percent of all recurring bills."

When customers opt for direct payment, they authorize a company to deduct the amount owed directly from their checking account. This works best with recurring bills -- mortgages, telephone or utility bills, and car payments.

If the amount due is the same every month, such as with a mortgage, the amount is automatically deducted. When the amount varies, as with a utility bill, the company must send a notice, either by mail or e-mail, 10 business days before the debit is to be made, so the customer can review the bill.

Some companies, such as American Express, are also offering customers the ability to pay by phone using either a credit card or by check.

If you're interested in electronic payment, contact the company to see if they offer that option. They may have information regarding online bill payment on their Web sites.

Consumers who prefer to stick with sending payments through the postal service should consider giving the payments a few more days than usual to reach their destination. If you mail the bill on time but it arrives late and you're assessed a late fee, contact the company and explain the situation.

Until the postal service issues a public statement that it expects delivery delays throughout the country, it's unlikely many companies will extend their grace periods on a routine basis.