When you own a business, it’s important to make sure your customers can pay for your goods and services as easily as possible. One way to make sure that happens is to offer them online payment. Many times, this can be done through different online payment systems and apps. Then, your customer can easily pay through their credit or debit card.
Online bill payment is an awesome benefit of technology. But there are pros and cons involved with bill payment systems. Learn more about what the Pros and Cons of Bill Payment Systems may be below.
Pros:
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Time Savings
Bills can be paid in a matter of seconds and takes minimal effort from the customer’s point-of-view. It frees up time for your customers and if they make automated payments, it can help them reduce the risk of late fees for missed payments.
You, as a business owner, also don’t have to wait for a check to clear the bank and you can access the funds more quickly.
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More Sales
Electronic substitutes have become the preferred payment option. Many consumers carry less cash on them on a daily basis. Therefore, online payments enable companies to make sales to customers who wouldn’t otherwise have cash available, thus, increasing sales.
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Convenience
It’s much more convenient to accept different online payment methods, rather than cash or checks. Now, payment can be accepted anytime of the day or night, from anywhere around the world.
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Less Transaction Fees
If you need to pay a bill through cash, going to the place of business generally will cost a customer money for potential gas or travel methods. A customer could also incur postal fees for mailing in a check.
On the other hand, there are usually no fees, or very small fees, to pay bills online through an online payment system.
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Security
Setting up online bill payment systems can help your customers feel more secure sending in their payments for goods and services. Mailing in payments can be difficult for a customer for a variety of reasons. It could get lost in the mail, someone could steal mail from their mailbox to take personal bank account information. Or simply processing the check could cause you more headaches than it’s worth on a business front.
By avoiding paper bills in favor of online payments, you and your customers will have peace of mind. These types of issues will be a thing of the past.
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Reduced Environmental Impact
It may seem small, but by eliminating paper bills and moving more to the online world, you are helping to reduce your impact on the environment. Help eliminate your company’s carbon footprint!
Cons:
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Susceptible to Online Fraud and Hacks
Online payment systems can still be susceptible to fraud, despite strict encryption behind the scenes to keep things safe.
Also, if there are insufficient authentication and verification methods, any person can use an online payment system belonging to someone else and could potentially get away with it.
There is also the risk of being hacked, where personal and account information for multiple customers could be exposed over the Internet. In the absence of proper security, hackers may be able to break into your system and could lead to illegitimate use of clients’ identities and money.
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Increased Business Expenses
Online payment systems need to protect sensitive financial information that is stored in computer systems. Therefore, it only makes sense that a business should bear the additional costs of purchasing, installing, and maintaining advanced payment security techniques.
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Technical Problems
If something goes down due to a technical issue, people may not be able to pay in a timely manner.
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Missed Due Dates
While this can happen with the old-fashioned way of paying with checks and cash, missing a payment due date online, or missing a payment all together is another risk of online payment systems.
A customer could also pay late without even meaning to, depending on if the due date happens to fall on a weekend or takes too long to process through a customer’s financial institution. This could mean you will have customer service issues to deal with down the road, to get that customer back to good standing in your system.
There are different strategies you can put in place, such as sending reminders of payment due dates through electronic email systems to ensure your client has what they need. But it still can be a risk.
Overall, bill payment systems can make things much easier and more streamlined for your business. However, don’t make the mistake of putting everything 100% on auto pilot. You will need to check that things are working properly on your end and for your customers. But with the right system, your business could be poised to make the next big leap of growth! If you would like to discuss any of these options further and dig more into the Pros and Cons of Bill Payment Systems, please reach out. We’re here to help!