Bank One is scrapping charges for its online bill payment service in a bid to make the service more accessible to its current account customers.
The service, which previously cost $4.95 a month, will be free for all Bank One current account holders except Basic One. About 3.6 million accounts will be eligible, representing roughly 80% of current account households.
The service allows customers to initiate payments to any party as well as arrange for recurring, automatic payments of utilities or other bills directly from bank accounts. Customers can also track and change payments online.
Charles Scharf, CEO of retail, Bank One, says: "Our research shows that online bill pay users are more loyal customers, which means they value this service. We want to make it more accessible."
Bank One introduced free e-mail alerts, a service that notifies customers of certain account transactions, last month. Free chequeing and online cheque images were introduced last autumn.