This post is an excerpt from the eBook Your Ticket to On-Time Payments: The 5-step, must-have action plan to cut payment delays published by the team at PaySimple.
In the last two years, three out of ten consumers have changed the way they pay their bills.1 And, right now, over 50 percent of all bill payments are being made electronically. The great news is, with the new technologies available, paying is evolving from the have-to-do-it closing step, to an occasion to have a positive interaction with customers and even a marketing opportunity.
The payment process is an extension of your service; it should be easy, seamless, and even pleasant. Just like you customize your work to what the client wants, the process provided to remit payment should provide options too.
To create that seamless process, just follow the acronym PAY:
Payment Type Accepted – Access to Pay – Your Follow Up
Payment Type Accepted
Debit cards have surpassed checks to be the leading choice for payment preference, according to the 2013 Consumer Payment Choice Study.2
Additionally, respondents in the focus group showed “a clear distaste for check writing.” However, when the bill amount goes to $300+, respondents shifted their preferences from debit to credit cards, citing additional consumer protection and rewards points.
The Short: Find an electronic payment processor that enables to you affordably accept debit and credit card payments, including echecks.
Access to Pay
It’s true, all of this technology has spoiled customers into expecting to be able to pay over the phone, in person, online, on an automatic schedule, and even on a mobile device. While this might sound like an accrual nightmare, there are processes and tools to help you manage.
The Skinny: Provide multiple access points for payment at a minimum: online, over the phone, in person. If your business has recurring bills for the same amount (think gym memberships, monthly service fees, subscriptions), set up auto-pay. Customers not only expect it, but will switch to competitors to get the convenience.
To learn more about the “Y” – Your Follow-up as well as the other tips available, check out”Your Ticket to On-Time Payments: The 5-step, must-have action plan to cut payment delays.
1 -BillTrust, 2013 Billtrust Consumer Payments Survey, 2013
2 -TSYS, 2013 Consumer Payment Choice Study, 2013, pg 5