Many smaller waste haulers still do not offer online payment solutions, but they should reconsider.
By Jeff Evans
Starting in 2006, payments made by credit or debit card surpassed those made by check, in terms of both total transactions and the value of those transactions. In the decade since this shift, the payment industry has watched the gap continue to grow, and card payments are expected to remain the new standard for the foreseeable future. Offering a secure online payment portal is the most efficient way to accept these payments. In today’s convenience-driven society, it is also a payment option customers have come to expect from their service providers, without exception.
The popularity of online card payments has increased so much that, over the last year, we have seen the advent of unauthorized third-party sites accepting payments on behalf of service providers. These sites routinely charge extra processing fees, and customers willingly pay them because the promise of convenience and control outweigh the cost, and even risk, of paying through unaffiliated sites. Companies without official payment portals are particularly vulnerable to these unsanctioned sites, which may or may not actually forward the payment to the service provider.
Today, it is unquestioned whether payment portals are a necessary part of any modern business. The discussion has instead shifted to what works best, for both the customer and the service provider. Given the right platform, features and support, service providers can expect to see many internal benefits, including:
- Spending less time negotiating billing and payment issues with customers;
- Reduced time between billing and remittance;
- Lower paper and postage costs; and
Increased efficiencies throughout other aspects of day-to-day operations. AKA: Allowing you to focus on core competencies like building your business.
We have identified three primary factors present in every great online payment portal—ease of customer use, ease of CSR (customer service representative) use and integration.
Ease of Customer Use
A user-friendly interface is the most important factor in determining whether customers will use the site. While demand for portals continues to increase because of their convenience, customers will not participate if they prove too cumbersome. In fact, a bad site may actually increase work for the service provider as customers call to discuss or complain about the site. Here are some questions to consider when exploring payment portal solutions:
- How many steps are required for a customer to make a payment?
- Can the customer pay more than one account using the same profile?
- Are customers able to see an electronic statement which is an exact duplicate of what they would have received in the mail?
However, “easy-to-use” should not be a euphemism for “lack of features.” Customers also want control, which means an effective portal should allow them to set preferences for how and when they receive and pay their bill. Put yourself in the customer’s shoes, and answer the following questions:
- Can customers store payment information for future transactions, or do they have to re-enter their card/account number every time?
- Does the site offer an option for automatic payments?
- Is account history—both statements and payments—available for review?
- Can customers view electronic copies of extra inserts, which would normally be sent with the paper statements?
- Are there options for paperless billing?
- Is it easy to add features requested by customers?
Finally, customers increasingly expect their service providers to host a payment site accessible from their smart phone and other mobile devices. Whether this is through an application they can download or via a mobile-friendly site, customers want the ability to pay their bill whenever (and wherever) is most convenient for them.
Ease of Administrative Use
The right payment portal can also be a valuable tool for customer service representatives, accounting teams and administrative staff. Whether for helping a new customer, or gathering information for internal purposes, effective payment portals have a few key attributes:
- The service provider can access the same information seen by the customer.
- Authorized administrators can accept payments for specific accounts and custom payments for those not yet enrolled on the site.
- They can also void or refund payments when needed.
- Frequently referenced information is readily at hand or requires few steps to access.
- The service provider can use the site to communicate with customers outside the normal billing cycle, e.g., to remind customers of important dates or alert them to potential issues.
- Proper safeguards exist to minimize mistakes.
A standard feature of any site should be the ability to set different permission levels, either for individual users, profile types or both. Only those with the highest level of permissions should be able to perform certain functions, such as refunding payments, sending notices to the entire customer base or changing payment terms listed on the site.
Reporting is another crucial factor in determining the usefulness of a particular portal. Of course, accurate and timely payment reporting should be a standard feature of any solution. But what about customer use reports? Paperless billing numbers? CSR activity? These can be useful tools in determining what is working for customers and what areas may need improvement. It can also help the service provider establish how much effort, communication and customer education are necessary for meeting a particular set of goals.
Integration
The final factor is integration. A payment portal will be relatively useless unless it integrates with your other billing and customer management systems. This can include your routing software, billing outsource provider and processor.
Whether through an Application Program Interface (API) or as part of the same system, your payment portal should have the ability to update customer accounts in real-time. This includes both when charges are levied and when payments are processed. Your billing outsource provider should be able to submit an exact copy of the regular paper statement for each customer to review at will online. This is especially true for paperless billing customers, or those who wish to retain electronic copies for their records.
Additionally, partnering with a Payment Card Industry (PCI)-Certified payment processor will not only decrease the liability that comes from storing sensitive cardholder information, it should also give your team access to a number of other abilities, features, and reports not available to companies relying on check or cash payments. This can be especially helpful when CSRs need to research why a specific payment was returned by a bank, or when you need to remind customers that their autopay card is about to expire.
The items above are important for every company to consider, whether you are implementing a payment site for the first time, or you’re reviewing the effectiveness and functionality of your current solution. Asking the questions discussed here will set your team on the path to finding the correct online payment portal—one that will increase your customer satisfaction, improve your efficiencies, reduce your time and labor investments, and bring your billing options in line with current marketplace expectations.
Jeff Evans is the Executive Vice President at BMS Technologies (Bend, OR). He functions as the head of client relations and strategic partnerships. Jeff has more than 25 years in customer service and management roles. Having come from the finance world, he understands the importance of efficiency in electronic presentment, payments and billing services. He can be reached at (541) 388-0789 or via e-mail at [email protected].
Case Study: North Lincoln Sanitary
North Lincoln Sanitary is a family owned and operated garbage and recycling company located in Lincoln City, OR. Established in 1966, their service area has expanded to cover Beverly Beach to Rose Lodge, serving approximately 4,000 customers every month.
As the company has grown through the years, the labor associated with billing and processing payments has also increased. North Lincoln outsourced paper statement billing to BMS Technologies in 2006. They then added the BMS payment portal—Online-Billpay—in 2011. Co-Owner Tina French cites time and labor spent on incoming mail, collections processing, and walk-in payments as the first motivation for implementing the system.
Internally, North Lincoln has seen improvements in overall cash flow and efficiencies. “It’s improved bookkeeping and budgeting because we can plan on receiving a set amount [from autopay] on the 15th of every month,” says French. Their impressive autopay enrollment is due, in large part, to an educational campaign they started during the first 18 months with the site. It was a simple initiative—a contest, really—to entice customers to enroll. Since then, enrollment levels have been easy to maintain using a simple “Enrollment or Deposit” policy. French estimates the portal has also reduced non-payment issues by 30 percent.
North Lincoln is now processing about $1 million more in revenue annually since implementing the payment portal, but they have still reduced the personnel and labor hours previously dedicated to processing customer payments. Declares French, “It’s super easy. By turning all of this over to BMS, and with the added comfort of PCI compliance, which was overwhelming before, we are able to focus on the business while they focus on the billing and payments. Our team members can focus on better customer service and interoffice tasks.”
North Lincoln has also seen increased levels of customer satisfaction across the board. “Some customers had to be made ‘cash only’ in the past, but now they can be offered autopay instead. They like that you can still get statements [paper or online] and be on autopay at the same time.” When asked about the feedback they have received from customers on their payment portal, French says, “They love it!”