A lack of standard procedures for dealing with incorrect account numbers entered by consumers was one problem cited in the report, which noted that some processors notify the consumers, while others try to edit the number and others send a paper check.

“Although the percentage of exceptions may appear inconsequential, volume is high, and the impact on billers, processors, financial institutions, small businesses, and even consumers is significant,” said Kathy Romano, director of Payment Processing for Verizon's landline customer business and member of CEBP.

“Exceptions require someone to manually resolve issues, creating additional expense for corporations and processing organizations. More importantly, consumers' payments will be delayed in processing, sometimes resulting in late fees or even service impacts,” Romano said.

“In order to help reduce the number of bill payment exceptions, sharing information, standardizing processes, and educating consumers is critical,” the report said.

The report documents volume, causes and costs of bill payment exceptions across several payment channels and is available online.