The ultimate purpose of any business is to make more money then the organization spends on a yearly basis. This cycle is known as the profit margin. In order to actually gain a profit, payments must be collected in a timely manner. This can be difficult for utility companies, and other businesses that bill for services on a monthly basis. Although customers have a generous thirty days to pay for services, a great deal pay at the last minute. Many make late payments. When customers send paper checks in the mail it slows down the process even further. Not to mention that printing and mailing physical invoices/bills is a costly, and time-consuming process. The good news is that there is a better way of doing business. So without further ado, here are some great reasons why utility companies should accept payments online.
Reason #1: Payments Are Received Sooner
Consumers prefer to pay for goods and services with credit cards in the current economic climate. However, far too many utility companies fail to accept credit card payments online. They rely on old school payment methods instead. When customers have the option to pay by credit card it increases the chances that they will make the payment sooner. It comes down to basic human nature. Consumers equate paying by paper check to paying money out of pocket. In essence, the funds are subtracted from their bank account. Paying by credit card eases that burden. The funds are not subtracted from their bank account. They are simply added to their current debt load. In turn, consumers are more willing to make the payment on time when paying by credit card.
Reason #2: It Is More Affordable
When utility companies accept card payments online, they are required to pay processing fees. However, it is far less expensive then the process of receiving paper checks. For example, when paper checks are received in the mail they must be physically deposited at the bank. That process takes a great deal of time. An employee or manager must commute to the bank, stand in line to deposit the checks, and then commute back to the office. This can occur multiple times per month or even multiple times per week. Needless to say, it adds up to a significant amount of man-hours. In addition, the employee could be working on something more important than shuttling checks to the bank.
Reason #3: Automatic Payments
The capability to accept recurring payments online, otherwise known as automatic payments, automates the payment process. Customers can simply enter their credit card information once, and set it up so that a payment is made at the same time each month. Customers appreciate this value added service because they do not need to spend any time or remember to pay the bill. It absolutely makes their lives easier. Utility companies are paid on time each month without the need to send payment reminders, or worry about late payments. When the business can accept recurring payments online it improves cash flow as well.
Payment Savvy specializes in providing utility companies with the ability to accept payments online. Please contact Payment Savvy today to review all options, obtain answers to your questions, and to apply for the best way to accept payments online. Our company is only successful when your business grows because of our products and services. We look forward to hearing from you and partnering with your company.
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