As you build your collections business you will find that accounts receivables (AR) management and collection requires a lot of time and expense. As a result you probably begin to think of methods to improve the processes while improving the revenue flow. Here are three techniques that can make a difference.
1. Set up recurring ACH payments
According to the National Automated Clearing House Association, collection agencies prefer recurring Automated Clearing House (ACH) payments from their accounts. Here are three advantages of recurring ACH payments for businesses.
- Significant cost reductions: ACH transactions usually have the lowest fees of any payment system. A credit card’s fee is typically around 2.5% of the value of the transaction plus a processing fee. ACH transactions usually cost about $0.30 total. As the number of transactions increase the cost savings with ACH transactions can add up quickly.
- No missed payments: With recurring ACH billing, you reduce the risk of missed payments. You no longer have to think about the consumer remembering to mail a check or log into their account to make a payment online. All future payments happen automatically without any human action required.
- Enhanced security: With recurring ACH billing all transactions happen automatically and within the system. This makes it much more difficult for scammers and computer hackers to obtain sensitive financial data. One-time ACH payments are very secure and recurring ACH billing makes them even more so.
2. Add mobile payments.
Mobile payment technology represents the evolution of the payments industry. Consumers can now pay with apps such as Apple Pay and Google Wallet rather than using a credit or debit card. Mobile payments are all online so your agents need not get involved. Payment are made and received electronically and immediately. Mobile payment apps also offer a high level of security. Mobile payment apps use encrypted data to protect customer information. Additionally, apps use two-factor authentication: PINs and fingerprint scans. With twice the amount of security as traditional cards, mobile payment apps provide clients (and you) with extra protection.
3. Integrated billing and payment
Instead of mailing a paper bill, send an electronic bill through which the recipient can make the payment electronically. Within that e-bill can be offered several means of paying including credit card and ACH payments.
The advantage to this is Instant payments without agent interaction. Because e-billing happens digitally, all transactions are instantaneous. You can avoid processing delays and postal deliveries by making your payment infrastructure electronic. In addition, the payments come into your business 24 hours a day, seven days a week. Although your business’s operating hours may be from 9 to 5, bills can still be sent and payments received around the clock.
So if you have not already looked into it, investigate the above methods of collecting payments. You will find that the amount of time and agent-hours they save will be well worth any initial investments that you make.
BillingTree has the latest technology and the best programs in order to help their clients grow their businesses easily, quickly and within full compliance. To learn more about how BillingTree can help you, contact BillingTree or call us at 877-424-5587.