The key to quick and convenient collections
From paper checks to the early days of automated call centers, the simple act of making a payment has come a long way. And while credit cards and debit cards have certainly streamlined the point-of-sale (POS) experience, mobile payment processors have quickly paved the way for a new generation of buyers and collectors – while raising the bar for payment gateway providers.
Today, when it comes to bill collection, especially for small business owners, not-for-profits (NFP), and those working in local governments with limited means for updating systems or increasing their accounts receivable headcount, collecting one-time and/or recurring bills has remained an uphill battle.
Without an efficient payment solution on hand, the current collection process looks something like this:
Initial notification: Traditionally, this requires mailing a physical notice and/or bill to the customer, which involves multiple employees and mail carriers to accomplish. There’s also the risk of losing an item in the mail which can be costly to mitigate and tough to prove, therefore delaying the time-to-collection for days, weeks, and even months at a time. Even then, the act of collecting an outstanding bill can be so time-consuming that it’s not worth pursuing altogether.
Recurring notices: With a host of factors to account for during the collection process, including logistical hiccups to the recipient’s ability to pay in the first place, sending out recurring notices is not only a best practice but a must-have in any organization’s collection plan. For instance, statements are not always received when there’s an address change, inclement weather, an internet outage, and the list goes on – resulting in past-due bills that never reached their intended recipient in the first place.
Receiving and processing: Even after the payment is in hand, it must undergo another series of steps before it can be completed. This includes anything from scanning a paper check to manually updating a digital database to sending the payment to a financial institution where the deposit is made – all before ever finding its way back into a business’s bottom line. Once again, when bypassing the mobile payment experience, human error and unforeseen events must be considered, with each snag extending the payment timeframe.
Payment acknowledgment: After the payment has been processed, a receipt must be issued to the payer. This way, the payer can review the details of the transaction and retain a copy for their personal records. This is often facilitated via a confirmation number, a printable page, or a follow-up email or piece of physical mail depending on the payer’s preferences. And more importantly, receipts for certain transactions must be kept for legal reasons, including business expenses, proof of ownership, charitable tax write-offs, and so forth.
Other considerations: Depending on the state or contractual agreement, legal requirements may dictate that consumers are given ample notice before a bill is due, an explanation and/or proof of responsibility, as well as a means to update their address, payment method, etc. – each one extending the time-to-pay and time-to-collect.
As you can see, the act of collecting payments can be a long and complex process, which is something that many teams don’t always have the means to overcome. This is a hurdle that's exacerbated when managing a recurring subscription model or handling a large payment volume, as is often the case when it comes to online retailers working in eCommerce.
In an effort to make payment processing more convenient for everyone involved, businesses, NFPs, and government teams alike require a contactless payment solution that connects both payer and collector instantly – without the need for complex coding or consumer education. A solution like Pay by Text.
An SMS payment gateway should be as easy as 1-2-3
Not only does making and collecting payments via text message remove the need for a middleman (i.e., extra staffing, 24/7 support, a physical POS system), a payment gateway like Pay by Text can take care of the complete payment process in just 3 easy steps.
Step One – Prompt payment
All bill payment information, including outstanding balances, account status, and due dates can be found on a simplified and centralized dashboard. From here, team members can quickly select ‘Collect payment’ and find the bill in question by entering the invoice number and amount owed.
Step Two – Customer notification
Once payment has been prompted, the customer will receive a rich text that allows them to view the invoice, see relevant information in-text or via additional links, then complete the transaction from the comfort of their mobile phone.
Step Three – Collect and record
In just a few taps, the customer payment is initiated, and a confirmation text is issued. Then, the invoice and receipt are archived and stored digitally for easy retrieval.
And that’s it. Pay by Text makes collecting easier than it’s ever been, whether it’s a local government, a non-profit collecting donations, or a business looking to collect payments outside of the traditional brick-and-mortar retail locations.
Whispir: text message payments made easy
Data shows that businesses using text-to-pay get paid 85% faster than businesses that don’t. And when combined with the fact that 98% of text messages are opened and responded to within 90 seconds, payments typically occur just minutes after texting out an invoice. And that’s just the start.
Learn how Whispir elevates the mobile payment user experience by offering a slew of customization options, including SMS and multichannel communication capabilities to make the whole process easy to implement and cost-efficient for payers and collectors alike. You can also schedule a one-on-one demo to see this custom payment solution in action.
