Category: Education

It’s Time to Overhaul Your Government Payment System, But It’s Not as Taxing as You Think

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Does your local or state government agency offer digital payments? If not, now is the time to follow the federal government’s lead. As of September 30, 2025, all federal disbursements and receipts are slated to be transitioned to digital disbursement, which means the end of paper checks for IRS refunds, Social Security payments and payroll disbursements. It also means where legally permissible, all payments to the federal government must be processed electronically starting October 1.

Why is Uncle Sam modernizing federal payments? According to the order, “The continued use of paper-based payments by the Federal Government … imposes unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies. Mail theft complaints have increased substantially since the COVID-19 pandemic. Historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT).”

Digital payments have become the norm—92% of U.S. consumers used a website, app or digital wallet to make a payment in the past year. Despite the popularity of online payments, government agencies have been slow to adopt them. As of 2024, only 4.9% of local governments had implemented digital payments. When government agencies do accept online payments, they often rely on outdated, clunky payment systems that redirect users to third-party portals.

Modernizing your government payment system promotes operational efficiency, boosts convenience for payers and staff and increases collections. Flexible digital payment options make it easier for constituents to pay on time.

 

Outdated Payment Systems: Silent Saboteur of Timely Payments, Customer Trust and Back-Office Efficiency

Many government agencies still rely on checks, in-person cash payments or outdated systems, creating friction for payers and back-office staff.

The harder it is to pay a bill, the more likely people are to put it off. When the payment process takes too long, is difficult to navigate on a mobile device and/or requires too many resubmissions (due to system glitches), people may postpone paying their utilities, taxes, fees or other government bills. Millennials report they are more likely to prioritize paying bills that are easy to pay before taking care of those that are inconvenient.

Almost half (45%) of Americans have paid a bill late in the past year, according to a 2024 Lending Tree survey. Which bills were late? Utility bills (44%), cable/internet (34%) and rent/mortgage (31%) payments were most often paid late. Why? More than a quarter of the late payers (28%) mixed up the due date, and 28% forgot about the bill. Almost one third (32%) of consumers said that utilities are the most challenging type of bill to remember to pay on time (the most common response).

Clunky third-party payment portals damage customer experience and erode trust. When a portal is slow, glitchy or hard to navigate, payers may doubt the reliability of both the system and the government agency behind it. A jarring transition from your government website to the payment site—like completely different branding or layout—can seem unprofessional and raise concerns about legitimacy of the payment site. If the portal looks outdated, generates pop-ups or lacks clear security cues, users may even suspect phishing or data breaches.

Checks are costlier and labor intensive. “Checks probably have the highest labor cost associated with them,” Nacha reports. The cost of receiving paper checks ($1 – $2 per check) is higher than receiving Automated Clearing House (ACH or eCheck) payments ($.26 – $.50 per transaction). Back-office staff spend hours mailing paper bills and processing paper checks manually. It takes several steps to process paper checks, including:

  • Sort the mail
  • Match checks to accounts/invoices
  • Endorse each check
  • Complete a deposit slip
  • Take the checks to the bank

Enter the payment information into the accounting or billing software

Billing staff must also field phone calls (to explain confusing bills) and chase late payments. All of these labor-intensive tasks claim valuable staff time that could be spent on more meaningful tasks that require a human touch.

 

The Solution: Offer Flexible Payment Options Residents Will Use

Flexible digital payment options are the key to improving payment efficiency, on-time collections and payer trust and satisfaction. Many consumers prefer to pay online. A 2024 Experian survey found that 58% of respondents pay bills online, while just 17% visit a location to pay a bill and a mere 15% mail their payments.

To satisfy diverse payer preferences, government agencies should offer a variety of flexible payment options, including:

Multiple payment methods. Government agencies should allow constituents to pay using their preferred payment method. Some of the most popular include:

  • Credit/debit cards: According to the 2025 Diary of Consumer Payment Choice report, 88% of survey respondents used a credit card within 30 days of completing the survey; 74% had paid with a debit card.
  • ACH: More than two thirds (70%) of survey respondents used this payment method. In addition to being less expensive than checks to process, ACH processing is faster. ACH payments can be settled within a few hours on the same business day, compared to paper checks that can take a week or longer to clear.
  • Digital wallets: While consumers often reach for digital wallets to make online and—to a lesser extent—in-store purchases, they also use these convenient apps for bill payment. Recent PYMNTS research found that 40% of consumers had used a digital wallet to pay bills within the past year. Digital wallet payments are processed electronically (eliminating manual labor associated with paper checks), can be reconciled quickly, and typically clear within one to three days.
  • Automatic payments (aka autopay or recurring payments): Automatic payments refer to automatically deducting payments from a specified bank account or credit/debit card on a scheduled basis. A PYMNTS survey of U.S. consumers found that 41% of consumers use automatic bill payments, with most (63%) using them for discretionary purchases. Fewer people (33%) use autopay for utilities like electricity, delinquencies, and time spent chasing late payments; and improved customer satisfaction.
  • Partial payments: A partial payment option allows constituents to pay less than the full balance for utilities, taxes or other fees. People can make an initial payment and settle the remaining balance later. A payer who’s short on funds pays what they can to demonstrate good faith, stay in good standing and avoid late fees and service disconnection.

 

Modern Government Payment Processing Systems Benefit Payers and Governments

Government agencies need an electronic bill presentment and payment (EBPP) solution like CSG Forte BillPay to increase efficiency, on-time payments and payer satisfaction. EBPP lets you send invoices electronically and securely. Constituents can log in to the platform and pay using a credit/debit card, ACH transfer or digital wallet. To maximize these benefits, agencies should focus on implementing systems and features that streamline the payment process for both payers and staff, such as:

Offer seamless, unified payment experiences. Embedding the government payment processing system into your agency’s website and integrating it with your billing and accounting software can:

  • Reduce friction and confusion
  • Eliminate administrative errors
  • Build payer trust
  • Encourage on-time payments

Increase self-service capabilities. Customers can access and update their account information and make payments at their convenience—and connect with a human agent when they need more support.

Realize efficiency gains and cost savings. Automating the billing and payment processes and providing flexible payment options can:

  • Save staff time: Your back-office staff won’t have to print and mail bills, process as many checks or manually reconcile payments. Clear billing statements and flexible payment options mean fewer billing-related phone calls.
  • Reduce costs: Electronic invoices reduce printing and mailing expenses, and processing payments electronically saves money.

 

Go Digital: Do Less, Collect More with CSG Forte BillPay

Flexible digital payments are no longer a perk—they’re the expectation. Going digital leads to happier citizens, lighter staff workloads, and more on-time payments.

CSG Forte makes it easy to modernize your government payment system without starting from scratch. CSG Forte BillPay is an EBPP solution that lets you accept payments anytime, from any connected device, using flexible payment methods like credit/debit cards, ACH and digital wallets. It supports one-time, scheduled, recurring and partial payments and automatically sends custom reminders and confirmations.

BillPay delivers a transparent, mobile-friendly payment experience through a single-page checkout form that complies with all requirements for web and mobile accessibility. It plugs into your existing accounting software, so there’s no need to overhaul your current systems.

A leading utility service provider saw a 65% drop in failed payments after implementing BillPay’s recurring billing and Account Updater tool, which automatically keeps credit card data current. Intech Apex Court Solutions increased credit card collections by 230% by implementing Forte’s Text to Pay solution.

CSG Forte can help your government agency achieve similar results. See how:

What Is End-to-End Encryption?

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Security is a must for software-as-a-service (SaaS) companies handling sensitive consumer data. However, the rise of cyber attacks makes traditional safety measures obsolete. That’s where end-to-end encryption (E2EE) comes in. Encrypting data from the moment you send it until it reaches its intended recipient prevents bad actors from altering or accessing confidential information. This allows you to comply with regulations and reduces the risk of breaches.

What Is End-to-End Encryption?

E2EE is a method of encrypting data so that only the sender and recipient can read it. The security method locks the information when it leaves the sender’s device until it reaches its destination. Even if someone intercepts the message mid-transit, all they’ll see is an unreadable string of characters. This approach all but eliminates third-party access.

Encryption falls into two cryptographic techniques—symmetric encryption and asymmetric encryption. In symmetric encryption, the same key is used for encryption and decryption. This method is swift and efficient. However, the challenge lies in securely sharing the encryption key between both parties. If a hacker were to access the key during transit, they could decipher the message.

Asymmetric encryption uses a public key and a private key. The public key is shared openly and is used to encrypt data. The private key is kept secret and is used to decrypt messages. If an attacker were to get the public key, they cannot use it to decrypt the message. E2EE systems use both symmetric and asymmetric encryption. The public-private key pair is used to securely exchange a session key—a temporary symmetric key—which then encrypts the actual data.

How Does End-to-End Encryption Work?

E2EE relies on asymmetric cryptography to scramble information before it leaves the communicator’s device and keeps it encoded until it reaches the receiver. The process involves the following steps:

  1. Data encryption: The sender’s device receives the original content and uses an encryption algorithm to convert it into an unreadable format called ciphertext.
  2. Transmission: The data then travels across the internet through various networks. Because it is encrypted, unauthorized parties can’t read or alter it.
  3. Decryption: When the encrypted data reaches its destination, the recipient’s device uses the private key to decrypt it, which converts ciphertext back into readable text.
  4. Authentication: This step verifies that unauthorized users did not tamper with the message during transmission. Digital signatures, hash functions and certificates are commonly used to validate the message’s integrity.

 

Applications of E2E Encryption

E2EE is often associated with messaging apps, but it safeguards various confidential data. Below are its common use cases.

Secure Communication

The most well-known use case of E2EE is securing communication channels, such as messaging apps, emails and voice and video calls. Popular messaging platforms like WhatsApp, Signal and iMessage use the method to protect messages between users. E2EE email services protect emails by encrypting them until they reach the recipient.

With the rise of remote work, businesses rely on video conferencing tools for collaboration. However, if your calls are unprotected, attackers can intercept, record or monitor them. Platforms like Zoom and Microsoft Teams have introduced E2EE options to prevent eavesdropping on private meetings.

Password Management and File Sharing

Without E2EE, passwords stored in a database could be exposed to a breach, which puts users at risk of identity theft and financial fraud. Encrypted password vaults prevent this by protecting users from bad actors.

Cloud-based file-sharing services make it easy to store and collaborate on documents, but they also pose security risks if data is not protected. End-to-end cloud storage platforms provide encryption so that only the user can access their files. Even the service provider cannot read the stored data.

Without E2EE, passwords stored in a database could be exposed to a breach, which puts users at risk of identity theft and financial fraud.

Data Storage

E2EE databases keep data encrypted before it is stored and can only be accessed by authorized users. This is helpful in industries handling sensitive information. If you’re a Saas company providing database solutions, integrating E2EE can set you apart from competitors. Customers dealing with regulatory compliance, intellectual property and personal data protection will find value in encrypted solutions.

Is End-to-End Encryption Good?

E2EE is one of the most effective ways to secure digital communications and sensitive data. But, like any security measure, it comes with advantages and challenges.

Benefits of End-to-End Encryption

Here’s why businesses should integrate E2EE:

  • Protects data: Cybercriminals target sensitive financial and personal data. However, cloud-based platforms are not immune to insider threats or external attacks. Using an end-to-end encrypted database means your client’s information remains secure. For example, payment processing systems that incorporate E2EE can protect credit card details by encrypting the data when a customer enters it.
  • Maintains confidentiality and privacy: End-to-end encryption and your privacy go hand in hand. Governments, corporations and other online entities often seek access to sensitive data, sometimes without the knowledge or consent of the user. Industries that rely on confidentiality can store electronic records and share proprietary information safely.
  • Provides data integrity: With E2EE, encrypted data cannot be altered in transit without detection. This is useful for securing financial transactions, contracts and other important business operations.
  • Builds user trust and compliance: Consumers are aware of modern digital privacy issues. When a SaaS provider implements E2EE, it shows that their security is a priority. Many industries also have strict compliance requirements that demand high standards of data protection. The method helps businesses meet these legal requirements.

 

Limitations of End-to-End Encryption

Here are the challenges organizations need to be aware of when using E2EE:

  • Visible metadata: Even if the content of a message or file is encrypted, metadata—such as who is communicating with whom, when and how often—can still be visible to service providers or attackers. Governments can use metadata to track interactions, even if they can’t see what’s being said.
  • Law enforcement concerns: One of the controversial aspects of E2EE is that it prevents law enforcement agencies from accessing data. Governments have raised concerns that this level of security could be exploited without oversight. Some authorities have even proposed requiring backdoors to allow access under specific circumstances, but hackers can also exploit these points.
  • Man-in-the-middle attacks: E2EE is only effective if encryption keys are exchanged securely. If an attacker steps in and manipulates the key exchange process, they could decrypt messages without either party knowing. This is why extra security measures may be necessary to maintain the integrity of communications.
  • No defined endpoints: For E2EE to work as intended, the endpoints or the devices where encryption and decryption occur must themselves be secure. If a device is compromised by malware or spyware, an attacker could steal the data from the user’s system. This means that strong antivirus software and secure hardware are still important.

 

Partner With CSG for End-to-End Encrypted Solutions

At CSG, we protect your data from unauthorized access. Our Forte platform keeps information secure from the moment it’s created to the moment it reaches its intended recipient. It’s a fast and scalable solution that allows you to customize payments for your customers. Our dedicated team also provides support to keep your system resilient against evolving threats. Plus, it’s built to meet strict regulatory requirements.

Talk to a payments expert to learn more.

From Paper Checks to Autopay: Streamlining Rent Payments for Property Management Success

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Property managers and owners count on getting on-time rent payments to maintain a healthy revenue stream. As economic pressures grow and tenant satisfaction declines, pressure on landlords is mounting to modernize rent payment processes. With inflation and higher living costs, almost 50% of U.S. renters struggle to make monthly payments. Outdated payment systems cause delays and errors, worsening the rent collection problem.

Many renters are dissatisfied with property management systems that don’t offer modern conveniences, such as digital tools for rent payments. They often want to pay rent online; 86% of renters say that online rent payments are important to them when evaluating a new rental before signing a lease. But property managers and owners are often stuck with the old-fashioned paper check method of taking rent payments.

To boost efficiency and meet tenant expectations for convenient, online payment options, property managers must streamline the payment process. Keep reading to learn how flexible, online payment solutions for renters can help companies overcome four common payment challenges:

 

1. Late and missed payments disrupt cash flow.

Late or missed rent payments are a common problem for property managers and owners, leading to cash flow disruptions and higher administrative expenses. Property owners rely on consistent rent payments to cover their own expenses such as mortgage payments, insurance, property tax, maintenance and repairs, and staff salaries.

As of November 2024, 14% percent of renters had incurred a late fee in the past 12 months. Many renters who get a single late fee struggle to recover. In fact, just under 60% of tenants who incur one late fee will end up with two, or more. More than 20% of renters with at least one late fee also have five or more additional charges in the last 12 months. And it’s not chump change: the median outstanding rental balance increased by 60% between September 2021 ($2,000) to November 2024 ($3,200).

 

2. Delinquency management is time consuming and legally complex.

Chasing late payments involves sending reminders, calling and emailing tenants and tracking communication, which consumes valuable staff time. Inefficient communication systems make these tasks harder. Navigating local, state and federal landlord-tenant laws regarding late fees, notices to pay or quit and eviction procedures is complex and time-sensitive. Errors can lead to fines, lawsuits from tenants or costly delays in gaining possession of the unit.

 

3. Some payment methods are inefficient, risky and/or difficult to reconcile.

There are various reasons for this, but the following are common:

  • Paper checks require physical handling, are slow to process and are susceptible to loss, theft and fraud. Reconciliation of paper checks is often manual.
  • Cash is difficult to track and risky due to security and fraud concerns.
  • Bank transfers (ACH/wire) sometimes lack clear identification of the payer or property, making reconciliation difficult without proper systems.

 

4. Communication gaps can lead to disputes.

If policies—rent due dates, grace periods, late fees and accepted payment methods—aren’t clearly communicated upfront (and continually repeated), tenants may challenge them.

What’s the solution? Property management payment solutions (with online payment options for renters) automate rent collection, payment processing and communication with renters.

 

How Two Companies Streamlined Payment Processing with CSG Forte

CSG Forte offers a suite of payment solutions that manage the entire payment lifecycle on a single platform, from payments and security to communications, support and self-service. Forte processes online and mobile payments, including credit/debit, ACH and digital wallet and sends automated payment reminders. Firms using CSG Forte’s property management payment solutions have experienced impressive results.

Gordon James Realty, a commercial and residential property management firm, needed a reliable and efficient system to process payments to vendors, receive payments from clients and manage returned payments. CSG Forte helped the company streamline the payment process by allowing the firm to process payments electronically, reducing manual labor and enhancing the end-user experience. Since implementing Forte payment solutions, Gordon James has experienced a:

  • 90% reduction in returned payments each month
  • 75% decrease in payment-related customer service inquiries
  • 25% reduction in accounts receivable processing costs
  • 15% reduction in time spent manually processing checks

While Gordon James Realty’s adoption of CSG Forte’s payment solutions showcases the significant benefits of streamlined, electronic payment processing—marked by dramatic reductions in manual work and customer issues—these advantages are not unique to one firm. In fact, property management businesses of all types and sizes are turning to digital innovation to solve persistent challenges. For example, Rentec Direct’s experience demonstrates the transformative impact of recurring, automated payment solutions in the property management sector.

Rentec Direct, a provider of online property management solutions to landlords and property managers, reduced late payments by using recurring digital payments powered by Forte. Rentec needed an integrated payment solution that allowed property managers to accept online payments and handle late fees and missed rent. Using Forte enabled Rentec to accept both ACH and credit card payments digitally, via one-time or recurring automatic payments.

Forte’s solutions were especially helpful for property owners utilizing Rentec’s solution during the COVID-19 pandemic. Between April and July 2020, renters failed to pay on time approximately 22% of the time. However, renters who used Rentec’s recurring payment system, powered by CSG Forte, only made late payments 1% of the time. During the height of the pandemic, landlords offering a recurring payment option experienced 20% less churn, resulting in 20% fewer vacancies.

 

Simplify Rent Payment and Reduce Late Payments with Forte

Flexible payment options—such as autopay, installments, and prepay—help minimize late payments, easing administrative workload and improving cash flow. Modern property management payment solutions support online payment options (satisfying tenants) and automate rent collection, increasing efficiency.

Property managers should adopt these tenant payment solutions to streamline operations and deliver a faster, more efficient experience for themselves and their renters.

Contact us to learn how Forte’s property management payment solutions streamline payment processes and reduce late payments, improving cash flow and satisfying renters.

5 Plug-and-Play Solutions to Modernize Government Payment Processing—Faster, Safer, Simpler

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Does your government agency rely on outdated payment methods like mailing a check or paying in person?

If so, it’s time to upgrade to a modern, digital payment solution that provides the convenient, flexible payment experiences that citizens now expect. Citizens want 24/7, mobile-friendly payment options for municipal services, including utilities, property taxes, car registration, parking tickets and permit fees. The three most popular payment methods are debit/credit cards (80% of survey respondents), digital wallets (60%) and cash (57%). Only 23% of respondents prefer to pay by check.

Many public sector finance leaders recognize the importance of payment modernization to boost efficiency and payer satisfaction while also controlling costs. However, outdated technology, limited budgets and technology knowledge gaps often pose significant obstacles to government payment modernization. That’s where plug-and-play payment solutions come in. They can help agencies overcome these challenges—benefitting governments and the people they serve.

 

3 Barriers to Government Payment Modernization

Local and state government agencies face several challenges to modernizing their payment solutions:

 

1. Outdated technology

Almost two thirds (62%) of public sector finance leaders surveyed agree that legacy technology is the number one barrier to payment innovation. Government agencies often use complex, outdated systems that are incompatible with modern payment technologies. Transitioning from these legacy systems can cause disruption and is often seen as too costly or risky.

State and local agencies face mounting challenges related to outdated systems, including:

  • Core system breakdowns: When legacy core systems can’t handle modern payment technology, agencies must resort to expensive emergency fixes that don’t address the root problems.
  • Knowledge gaps: As legacy app developers and architects retire, agencies are left without staff to manage or repair aging systems.

 

2. Budget and resource constraints

With tight budgets and lean teams, many government agencies find it tough to invest in modern payment systems. Smaller municipalities often struggle with the initial cost and resource-intensive nature of upgrading legacy systems.

More than half (54%) of finance leaders cite budget as a top barrier to payment innovation. On top of that, state and local governments face:

  • Increasing uncertainty: State budgets are impacted by ongoing federal funding changes and widespread agency reductions.
  • Diminished funding: Temporary pandemic-era state aid and infrastructure funding have largely ended, forcing state and local governments to stretch limited resources further.
  • Declining revenue: Declining tax revenue, emergency infrastructure repairs and unforeseen expenses cut into funds earmarked for technology improvements.

 

3. Knowledge gaps

More than three quarters (76%) of public sector finance leaders agree that lack of internal knowledge about emerging technology is holding some departments back. Insufficient digital expertise hampers agencies’ ability to serve the public effectively. Limited in-house IT personnel forces agencies to rely on costly external contractors. Clunky or unreliable payment systems weaken public trust and hurt revenue collection.

 

How can government agencies overcome these hurdles to upgrade their payment systems? Think plug-and-play.

A “plug-and-play” payment solution refers to a payment system or gateway that is designed for easy and quick integration into a government agency’s website, application, or point-of-sale (POS) devices, with minimal technical effort or coding. Think of it like a USB device for your computer—you “plug it in,” and it just works, without requiring complex setup or configuration.

Plug-and-play payment solutions allow government agencies to implement new digital payment solutions quickly, with minimal technical expertise. These user-friendly solutions integrate seamlessly with existing accounting systems and provide modern features and functionality without extensive upfront costs.

 

CSG Forte BillPay

To meet citizen expectations for seamless, instant payment experiences, government agencies need to automate routine tasks through electronic bill presentment and payment (EBPP). CSG Forte BillPay is a simple online payment portal that allows citizens to pay bills securely and conveniently. With BillPay, you can accept payments anytime, from any connected device, using flexible payment methods. BillPay is ideal for paying taxes, utilities, fines and fees.

BillPay

  • Generates custom notifications (reminders) and payment confirmations automatically.
  • Offers transaction tools for one-time, scheduled or recurring payments (such as utilities).
  • Integrates with in-person POS devices.
  • Allows citizens to self-serve, saving time.
  • Reduces customer service calls.
  • Decreases billing costs (print and mailing).

 

IVR Payment Processing

IVR payment systems use advanced touch-tone and speech-recognition technology to guide citizens through the payment process over the phone. IVR payment solutions are a convenient way for citizens to pay utility bills, property taxes and fines. CSG’s IVR payment processing system:

  • Is available 24/7 without an internet connection.
  • Is less expensive than payment processing through a contact center agent.
  • Reduces live agent payment-related calls and overhead staffing.

 

POS Devices

Even in this digital age, some people prefer to pay in person. In-person payment processing via a POS device lets people pay in person at local government offices with a card or mobile payment.

CSG Forte offers EMV- and contactless enabled terminals that are user-friendly and secure. Modern, simple POS terminals and readers accept any card or contactless digital wallet to meet your card-present needs.

Our POS devices for government provide:

  • Payment security: PCI, end-to-end encryption (E2EE) and validated point to point encryption (P2PE) keep sensitive card data safe.
  • Fraud protection: CSG Forte Protect encryption delivers an extra layer of protection against fraud.
  • Integration with billing systems: Seamlessly connects payment transactions to government billing and accounting platforms.

 

CSG Forte Dex

CSG Forte Dex is a cloud-based, unified payments platform that helps government agencies increase operational efficiency and simplify payments management, including transaction monitoring, dispute management, reporting, analytics and more.

Dex

  • Manages and monitors all payment operations in one location, saving time and money.
  • Provides complete access to payment operations.
  • Quickly address payer needs.
  • Grants refunds.
  • Cancels charges.
  • Includes automated dispute management tools and funding grids that save time by reducing the burden of manual accounting and reconciliations.
  • Gives you real-time insights into payment trends, including transaction breakdowns and payment trends, via reporting dashboards.

 

CSG Forte Checkout Saves Time and Money

Residents in Kinston, North Carolina, pay their utility bills directly to the city government. Prior to partnering with CSG Forte, Kinston residents could pay via phone or in person at a kiosk—but not online. City officials wanted to integrate payment processing into their billing software’s web interface so residents could easily pay their utility bills online.

The city used CSG Forte’s checkout solution to route payers from the city’s website to a secure third-party webpage to complete their transactions. CSG launched an online and IVR utilities billing solution for Kinston using a convenience fee model. CSG’s billing and payments experts provided comprehensive technical support following implementation.

After integrating more electronic payment processing options, Kinston saw 41% year-over-year growth in the number of transactions processed electronically. As a result, Kinston staff now handle less cash and fewer checks, saving time and reducing bank fees. Kinston residents appreciated the ease of making payments through the new system.

 

Modernize and Simplify Government Payment Processing with CSG Forte

Modernizing payment processing to accept digital payment methods increases security, efficiency, cost savings and citizen satisfaction. Implementing CSG Forte’s plug-and-play payment solutions is an effective, affordable way to adopt digital payment solutions to keep up with consumer preferences.

Forte’s government payments platform streamlines payment processing, meeting the needs of today’s citizens by offering a variety of payment options across channels. Government agencies benefit from dedicated support from CSG’s payment experts and their combined decades of industry experience.

Contact us to learn how CSG can help you modernize your government payment solution and simplify payment processing.

What Are ACH Credits and How Do They Work?

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Do you compensate your employees through direct deposit? Have you paid your bills online? If so, you have sent ACH credit. The Automated Clearing House (ACH) is a critical network in the United States financial industry that manages millions of transactions like these every day.

ACH credit makes electronic money transfers possible, so many systems and apps use this infrastructure for digital payments. You can benefit from fast, simple and secure payments when your business uses ACH payment solutions.

Read on to understand the meaning of an ACH credit and how it can boost your business.

 

What Does ACH Credit Mean?

An ACH credit is an electronic payment that sends money from one account to another. The payer (the person sending the payment) makes the request to push funds from the originating bank account (the payer’s account) to the recipient (the person receiving the payment) by putting the funds in the deposit account (the recipient’s account).

This method requires only a few basic transaction details, including the payer’s and recipient’s:

  • Name
  • Bank account number
  • Bank routing number

In just a few hours or days, the transaction is completed, and the recipient has the funds in their account.

ACH credits occur through ACH, an electronic money network connecting every major financial institution in the country, including credit unions, banks and the Federal Reserve. With this network, people and businesses can facilitate payments between accounts regardless of the banking institution. The National Automated Clearing House Association (Nacha) manages the ACH network and ensures payment is safely and quickly transferred. While this network mainly transfers money within the U.S., it can be used for international transfers.

 

How Does ACH Credit Work?

ACH credits are essentially a digital form of paper checks. With a paper check, the payer would fill out a check for the recipient to take to their bank. With credit ACH, the details are recorded and the funds are transferred electronically.

Here is how ACH electronic credits work:

  1. The payer initiates the payment: The payer provides the originating bank—or the Originating Depository Financial Institution (ODFI)—with the recipient’s account number and routing number, the amount of money to transfer, and a target settlement date (the date to transfer the money).
  2. The ODFI sends the payment details to ACH: The ODFI or their approved processing partner starts the transfer by sending the request to the ACH network. These institutions may batch several transactions to send to ACH in bulk.
  3. ACH sends the details to the recipient’s bank: The ACH network receives incoming transfer details in bulk and breaks them down into individual transactions. They bundle the transactions into batches and send the batch to the depositing bank—or the Receiving Depository Financial Institution (RDFI). ACH completes this process five times per business day.
  4. The RDFI processes the transaction: The RDFI receives the ACH bundles in their system and executes the transaction based on the processing window. Any transactions with incorrect information will trigger an error code, and the RDFI sends error codes back to ACH.
  5. The ODFI and RDFI settle the transaction: If the transaction has the correct details, the ODFI and RDFI settle the payment using their Federal Reserve balances.
  6. The recipient receives the payment: The RDFI releases the ODFI funds to the deposit bank account.

This process typically takes two business days, but it can be completed in one day if the ODFI pays a fee for same-day processing.

 

What Are Examples of ACH Credit?

Many individuals and businesses use ACH credit every day without realizing it. Any payment involving an account number and routing number to transfer money counts as an ACH transfer.

The most common examples of ACH credits include:

  • Online purchases: For merchants that do not accept credit card payments online, consumers can use an ACH transfer to pay the store for their order.
  • Refunded purchases: When merchants need to refund a consumer for a returned product, they can push money from their account to the consumer’s account. This transaction is an ACH credit.
  • Government benefits: The U.S. government uses ACH credit to send money from its accounts to qualified recipients for stimulus payments and similar transactions.
  • Direct deposit: When employers send payroll to employees through direct deposits, these transfers are a type of ACH credit. Funds in the employer’s account are pushed to their employees’ bank accounts.
  • Bill payments: Many companies allow customers to pay their bill online. Customers can provide their account and routing numbers to transfer funds from their account to the business to settle the bill.
  • Peer-to-peer payments: Payment apps like Venmo and PayPal allow people to send money to another person. This transaction is an ACH credit payment. While an ACH credit transaction is free, fees may be incurred depending on the bank used. If the ODFI or RDFI uses a processing partner, the partner may charge additional fees. The bank itself may charge a fee per transaction. The fee for an ACH credit transaction can range from tens of cents to a couple dollars.

Factors that impact ACH credit fees include:

  • The number of transactions processed per month
  • The monetary amount of transactions
  • The likelihood the transaction will be returned
  • If the transaction requires same-day processing
  • Which account validation method will be used

Since these fees operate on a scale, businesses will see reduced costs per transaction the more transactions they have.

 

What Benefits Do ACH Credits Offer Your Business?

Compared to traditional payment methods, ACH processing is quicker, easier and more secure. ACH transactions offer many advantages, including:

  • Simple setup: ACH credit requires the payer’s and recipient’s bank account number and routing number. By requiring only a few details, your business can easily set up one-time or recurring payments. Because these numbers change infrequently, if ever, you can count on your payments to go through.
  • Minimal to no transaction fees: Compared to wire transfers and credit cards, ACH credit fees are much lower, if there is a fee at all. This cost-effective fee pricing leads to monetary savings for your company.
  • Fast payments: ACH credit is one of the most efficient payment methods available. You can pay your employees and bills right away without manual processing. Funds move quickly between banks and are available in the deposit account as soon as the transaction is finalized.
  • Enhanced security: Credit ACH transactions have many security measures to ensure the funds are safe between the originating and deposit accounts. For example, bank account verification requires the payer and recipient to prove their bank account numbers, and fraud detection verifies the parties’ identities.
  • Accessible payment records: You can review electronic records of your transactions in your ACH processing platform at any time.

 

Choose CSG Forte for Your ACH Solutions

Your company can process ACH payments from any device, bank or source with validate services from CSG Forte. We offer two solutions—Validate and Validate+—to process and report your payments while reducing manual errors and identifying bad checks before processing. Your business can also validate online transactions for fraud, keeping you compliant with Nacha.

Contact us for more information about Validate and Validate+ or sign up today for your payment processing solution.

Why Now Is the Time to Modernize Government Payments

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“Companies succeed or fail according to whether they can keep up with customer preferences, and payments are no exception.” – USBank.

Want to improve the payment experience at your government agency?

Meet citizen expectations—go digital. People expect their local, county and state governments to offer the same payment convenience and flexibility retailers and other service providers offer. Although an increasing percentage of people prefer digital payments, many government agencies don’t offer them, instead relying on outdated methods like mailing paper checks or paying in person. These traditional approaches are inefficient, prone to errors, vulnerable to check fraud and often frustrate constituents.

To improve efficiency, security and service—and reduce costs—government entities must modernize their payment systems. Keep reading to discover three essential capabilities for government payment processing systems and eight benefits of modernizing your payment system.

 

3 Requirements for Government Payment Processing

Government online payment solutions must be able to:

 

1. Protect constituents from fraud.

Government organizations that collect payments face two major security-related concerns: losing funds and losing public trust. The Association for Financial Professionals reports that 79% of organizations were victims of payments fraud attacks or attempts in 2024. Paper check remains the most fraud-vulnerable payment method, with 63% of organizations reporting check fraud in 2024. Only about one-fifth (22%) of organizations were able to recover 75% or more of the funds lost due to payments fraud in the same year.

Millions of people in the U.S. are affected by data compromises each year—including data breaches, leakage and exposure—resulting in unauthorized threat actors accessing sensitive personal information. One survey found that 58% of consumers believe that brands that get hit with a data breach are not trustworthy, and 70% would stop shopping with a brand that suffered a security incident.

To help constituents feel comfortable paying taxes, penalties or other fees online, you must prioritize cybersecurity and provide secure payment solutions. Government agencies must comply with strict regulations like Payment Card Industry Data Security Standard (PCI DSS), but legacy payment systems often fall short in protecting sensitive payment data and lack up-to-date security measures, exposing payment data to fraud and cyberattacks.

 

2. Accept multiple types of payments.

Your constituents now expect 24/7, mobile-friendly payment options for municipal services, including utilities, property taxes, car registration, parking tickets and permit fees.

Consumer payment preferences shift rapidly. According to a USBank survey, digital wallets—the fourth most popular payment method in 2023—moved up to second place (preferred by 60% of respondents) in 2024, behind debit/credit (80%). Cash (57%) rounded out the top three. More than half (54%) of public sector finance leaders say payment acceptance technologies and consumer preferences change so fast it’s hard to prioritize and keep up with trends.

Your payments platform should allow you to accept multiple types of online payments, including:

 

3. Scale to meet future needs.

The ideal payment processing solution for governments is capable of processing large transactions volumes quickly and smoothly, without delays or disruptions. For example, local governments experience a spike in payments during tax season, and their secure payment solution must be able to accommodate these higher annual demands. Additionally, fast-growing municipalities should be able to meet their new residents’ needs.

Can your legacy payment processing system do all this? If it falls short, it’s time to upgrade to a modern digital solution that delivers what today’s constituents expect.

 

8 Benefits of Modernizing Your Government Payment System

Reliable digital solutions—such as ACH and credit card processing for government agencies—streamline payment operations, keep constituent data secure and scale according to your future needs. Here are eight ways your department could benefit from modernizing payments:

  1. Stronger security and compliance: Modern payment solutions include state-of-the-art encryption and fraud prevention tools and comply with the highest security standards, such as PCI DSS, reducing the risk of data breaches.
  2. Enhanced payer experience, satisfaction and trust: Citizens appreciate the flexibility and convenience of multiple digital payment options, allowing them to choose how and when to pay. People can easily view payment history and receive reminders, supporting financial management. A convenient, secure and frictionless payment experience boosts constituent satisfaction and builds trust in your agency.
  3. Increased efficiency: Streamlined operations allow your personnel to focus on high-value government initiatives instead of spending time processing payments and doing manual accounting and reconciliations.
  4. Reduced errors and administrative burden: Automation eliminates the manual reconciliation processes (associated with outdated accounting systems) that increase errors, fraud risk and operational costs.
  5. Decreased operational costs: Modern payment solutions reduce the need for physical infrastructure, paper billing and manual processing, saving money. Plug-and-play solutions offer a cost-effective, scalable approach that supports sustained cost savings over time.
  6. Expanded revenue streams: Online, interactive voice response (IVR) and kiosk payment systems allow people to pay via credit card, accommodating those who don’t have immediate access to funds. Improved revenue collection and service-fee models help recoup the cost of updating your payment system.
  7. Improved cash flow through: With a faster and simpler payment processing solution, you receive payments quicker.
  8. Increased likelihood of on-time payments: Giving constituents more ways to pay may decrease the likelihood of late payments. Millennials report they are more likely to prioritize paying bills that are easy to pay before taking care of those that are more inconvenient.

Outdated technology and limited budgets often make it challenging for government agencies to modernize their payment systems. Are you ready to find out how modernizing your system can help you, your employees and your constituents.

Contact us to learn how CSG Forte’s government payments platform can help you modernize your government payment solution and simplify payment processing.

Unlocking the Future: How Cloud Payments Can Transform Governments

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Remember the last time your finance team had to chase a missing payment across three different systems? That patchwork of mainframe screens, desktop terminals and bolt-on gateways once felt “good enough,” but it’s now a budget-draining anchor. Siloed accounting, recording and payments tools drive up transaction costs, lengthen close-out cycles and frustrate constituents who expect mobile-first self-service.

A unified, cloud-based platform lets cities migrate on their own schedule and add modern channels like text-to-pay—all while keeping day-to-day operations humming.

But before you can modernize, you have to understand exactly where you stand. Many local governments operate on a tangle of legacy tools that have been patched together over decades—each department managing its own vendor, system and reconciliation process. The result is complexity that costs more than it saves. The first step toward a streamlined, cloud-based solution is a clear-eyed audit of your current workflows, systems and costs. That’s where transformation really begins.

 

Step 1: Audit Your Current Workflows and Fees

Before moving a single byte, catalog every point where money enters, moves or exits your systems:

  1. Revenue streams: taxes, utilities, courts, permits.
  2. Touchpoints: walk-in counter, IVR, web portal, lockbox service.
  3. Reconciliation path: payment gateway to general ledger
  4. Hidden fees: PCI non-compliance, chargebacks, paper checks.

Quick win: use Forte’s Payment-Processing FAQs to translate technical gateway language into finance-team speak, then attach dollar figures to every manual step (e.g., staff minutes per payment, cost per paper bill). These numbers will become ammunition for your business-case presentation.

 

Step 2: Build the Business Case

Upgrading core infrastructure competes with roads, parks and public safety, so your pitch must balance risk reduction, cost savings and constituent experience.

  • Compliance risk: EY flags “policy and regulatory complexity” as a top-10 public-sector risk for 2025; failure to meet new PCI or NACHA rules can trigger fines and erode public trust.
  • Direct savings: a consolidated platform eliminates duplicate licensing, reduces payment card interchange with least-cost routing and cuts paper/postage.
  • Revenue acceleration: self-service portals and automated reminders make your revenue collections more efficient and predictable.

Pair these benefits with the gaps you uncovered in Step 1. Use Forte BillPay screenshots to show executives how a resident would see all obligations—utilities, parking tickets, pet licenses—in one cart. Finish with a three-year ROI table and a “soft costs” line for staff hours returned to strategic work.

 

Step 3: Implement Best Practices

Moving off a mainframe doesn’t require a “big-bang” weekend cutover. Follow a phased approach instead:

  1. Choose a pilot department: Courts or utilities often have clear revenue cycles and motivated stakeholders.
  2. Stand up parallel processing: Keep legacy billing live while routing a subset of payments through Forte’s Online Payments APIs.
  3. Automate reconciliation first: Real-time ledger sync lets finance validate totals daily, building confidence before you add new channels.
  4. Add resident touchpoints: Enable emailed invoices, text-to-pay and mobile wallet options.
  5. Train & Communicate: Publish how-tos, hold staff Q&A sessions and post banners on the city website explaining the new portal.
  6. Deactivate legacy screens—slowly: After two full billing cycles with near-zero variance, sunset the old cashiering module and reassign staff.

Throughout, lean on Forte’s Complete Payments Solution for tokenization, point-to-point encryption and convenience-fee handling—so finance, IT and legal can check their boxes without separate vendors.

 

Step 4: Measure Success and Iterate

Modernization is a journey, not a finish line. Slalom’s 2025 Government Outlook urges agencies to adopt continuous-improvement loops that marry operational data with resident feedback.

Track these KPIs quarterly:

Share of e-payments

  • Pre-Modernization: 42%
  • Target After Phase 1: 65%
  • Target After Phase 2: 85%

Days-to-close books

  • Pre-Modernization: 10
  • Target After Phase 1: 5
  • Target After Phase 2: 2

Chargeback rate

  • Pre-Modernization: 0.35%
  • Target After Phase 1: 0.25%
  • Target After Phase 2: 0.20%

Average call time (billing)

  • Pre-Modernization: 6 min
  • Target After Phase 1: 4 min
  • Target After Phase 2: 2 min

Use Forte dashboards to export metrics directly to your ERP or BI tool. Survey residents on ease-of-use after each phase, then feed insights into the product backlog—perhaps a Spanish-language chatbot or pay-by-QR kiosk at city hall.

 

Book a Modernization Workshop with CSG Forte

Hundreds of local governments appear on the annual GovTech 100 list, proving that digital transformation is now the rule, not the exception.

Ready to join them? Schedule a no-cost payment modernization workshop with our government payments team. We’ll:

  • Map your current payment flow end-to-end
  • Quantify hidden fees and manual costs
  • Draft a phased migration timeline tailored to your staffing levels
  • Deliver an executive-ready ROI deck you can present at the next council meeting

Talk to a Forte payment strategist and start turning that legacy mainframe into a modern, cloud-native engine for resident satisfaction and fiscal resilience.

What Is a Bill Payment Platform, and How Does It Work?

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Remember the last time you paid a streaming bill without even noticing? That friction-free moment is no accident; it’s the result of purpose-built bill payment platforms that move money quietly in the background. Today, more than one-third (34.6%) of United States consumers use automatic payment methods, and Baby Boomers use it 43% of the time when given the option. For merchants—utilities, property managers, healthcare providers, insurers and more—meeting that always-on expectation means ditching patch-work portals and embracing a single, automated platform.

 

Bill Payment Platforms: A Plain-English Definition

A bill payment platform is cloud software that lets businesses present, collect and reconcile customer payments—recurring or one-time—through any channel your customers prefer, including web, mobile, text, IVR and in person. Think of it as the command center that:

  1. Generates or imports invoices.
  2. Displays balances in self-service portals or pushes them via SMS/email.
  3. Accepts cards, ACH and digital wallets.
  4. Routes transactions through a payment gateway/processor.
  5. Reconciles funds, posts to your accounting system and issues receipts.

Digital payment usage in the U.S. hit an all-time high in 2024, with 60% of consumers saying they’ve adopted digital payments. That’s eight percentage points greater than 2019—and much of that growth stems from merchants embedding platforms rather than building from scratch.

 

Under the Hood: How It Works, Step by Step

While the term “bill payment platform” might sound complex, the actual process is designed to simplify every stage of your billing and payment workflow. From the moment a customer receives a bill to the instant funds hit your account, each step is streamlined and automated to reduce manual effort, improve accuracy and ensure a smoother experience for both you and your customers. Below, we break down how a modern bill payment platform works behind the scenes—so you can see exactly where the value comes in.

Bill Payment How it Works Infographic

What Should You Look for in a Payment Platform?

Not all bill payment platforms are created equal. As more businesses embrace digital transformation, it’s critical to choose a platform that doesn’t just accept payments—it helps you operate more efficiently, reduce risk and meet evolving customer expectations. Whether you’re billing tenants, patients, policyholders or utility customers, these are the essential features that distinguish a high-performing solution from a basic processor.

 

Seven key capabilities every platform should offer:

  1. Omnichannel payments: Support for online, mobile, phone and in-person transactions.
  2. Recurring + one-time billing: Handle both predictable schedules and one-off invoices.
  3. Card & ACH acceptance: Expand payment options while reducing processing costs.
  4. Real-time reporting: See payment status, reconciliation progress and failed attempts at a glance.
  5. Integration-ready: Connect seamlessly with your accounting, billing, or practice management systems.
  6. Brand customization: Keep the experience consistent with your business identity.
  7. Secure & compliant: Ensure PCI-DSS compliance and protect cardholder data with tokenization

 

Who Benefits from a Bill Payments Platform?

If you think bill payment platforms are just for big corporations or government agencies, think again. From solo practitioners to multi-location service providers, a wide range of businesses are using this technology to streamline payments, improve cash flow and enhance customer experience.

Here are just a few examples of how direct merchants across different industries are putting bill payment platforms to work:

  • Utilities – Reduce overdue balances with automated reminders and frictionless payments.
  • Property Management – Make rent collection faster, easier and less prone to errors.
  • Healthcare Providers – Let patients pay on their schedule with card-on-file and installment options.
  • Insurance Agencies – Simplify policy renewals and recurring premium payments.
  • Education & Childcare Centers – Automate tuition billing and reduce admin time spent on manual tracking.

 

What Benefits Will Your Business Experience by Adding a Bill Payments Platform?

Beyond customer convenience, adopting a bill payment platform can dramatically improve your operations. Automating your billing and collections process not only reduces administrative tasks—it also protects your bottom line by speeding up payments and minimizing missed invoices.

Here’s how the right solution pays off:

  • Faster cash flow: Payments are processed on time, reducing your days-sales-outstanding (DSO) and boosting liquidity.
  • Lower Overhead: Fewer manual tasks and reduced reconciliation time translate into cost savings.
  • Happier customers: Give customers the payment options and control they expect, improving satisfaction and loyalty.
  • Higher retention: Easier payments mean fewer cancellations and stronger customer relationships.
  • Smarter insights: Real-time dashboards give you full visibility into trends, delinquencies and revenue performance.

 

CSG Forte: Making Bill Payments Easier

At CSG Forte, we know that managing bill payments isn’t just about transactions—it’s about relationships. That’s why our BillPay platform is designed to make the experience easy and secure for both businesses and customers. From branded portals to text and voice payments, we give you the tools to meet customers where they are and get paid faster with less hassle.

Here’s what you get when you partner with Forte:

  • Hosted BillPay portal: A brandable, mobile-friendly interface that’s PCI-compliant and easy to implement.
  • Text-to-Pay & Voice-Pay: Offer frictionless payments directly through automated reminders.
  • Processor-agnostic gateway: Use your existing bank and still leverage our powerful platform.
  • Hands-on support: Get help from real people who understand the needs of direct billers.
  • API-first architecture: Integrate directly with your ERP, EMR or custom billing system.

In a world where speed, convenience and digital access are everything, clunky billing systems are holding businesses back. A bill payment platform doesn’t just modernize your payments—it can transform how you engage customers, improve your cash flow and scale more efficiently.

Whether you’re a healthcare provider, utility company, property manager, or insurer, CSG Forte’s BillPay solution is designed to help you get paid faster—with fewer errors and better customer outcomes.

Ready to simplify your billing? Talk to a Forte expert today and see what smarter bill payments can do for your business.

What is Payment Reconciliation?

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For businesses that process payments daily, keeping financial records accurate and up to date is important. If you want every amount received to match recorded transactions, you should conduct payment reconciliation. This process aligns your records with bank statements so you can track revenue, prevent fraud and maintain financial stability. With the right tools, you can streamline high volumes of transactions.
 

What Is Payment Reconciliation?

Payment reconciliation is a financial process of matching internal records with external financial statements. External financial records can include bank statements, credit card reports or digital payment records. Simply put, it’s the act of double-checking transactions to confirm that the money coming in and going out of a business aligns with what’s recorded in its books.

Every time a company receives a payment from a customer, issues a refund or makes a purchase, that transaction gets logged in its financial system. But just because a transaction is recorded internally doesn’t mean the external records always match. Errors happen, and unauthorized transactions can slip through. Reconciliation of payments catches these discrepancies.
 

Types of Payment Reconciliation

Businesses deal with different payment types, so each may require its own verification method. Here are common techniques you might encounter.

  • Bank reconciliation: Bank reconciliation involves comparing a company’s internal records with bank statements to check if they match.
  • Credit card reconciliation: This accord helps track merchant account deposits and other related fees.
  • Digital wallet reconciliation: With the rise of digital wallets, businesses must reconcile these transactions from credit card payments when the underlying funding instrument of the customer differs from the card being used. Reconciliation tools simplify this process by automating digital wallet transaction tracking so it align with sales records.
  • Cash reconciliation: Since cash transactions don’t have an electronic trail, regular reconciliation accounts for every dollar received to prevent loss or theft.
  • Accounts receivable reconciliation: When customers pay on credit, businesses must harmonize these amounts to keep track of amounts collected and owed.
  • Accounts payable reconciliation: Just as businesses need to track money coming in, they must also reconcile accounts payable to confirm they are paying vendors and suppliers correctly.
  • Payroll reconciliation: Payroll balancing verifies that salaries, bonuses, deductions and tax withholdings are processed accurately.
  • General ledger: The general ledger contains records of every transaction. Balancing it means all entries are accurate and correctly categorized.

 

The Payment Reconciliation Process

Payment matching is a multi-step process, which, when done manually, can be time-consuming and lead to errors. CSG payment software integrates with multiple sources and automatically pulls transaction data from a centralized system. This eliminates the need for manual data retrieval and provides businesses with a real-time view of all payments.

Payment and billing reconciliation varies from one business to the next, but the process typically follows these steps:

1. Gather Data and Retrieve Records

First, you’ll need to collect all relevant financial records. These typically include:

  • Internal transaction logs from the company’s accounting system
  • Bank statements reflecting actual deposits and withdrawals
  • Reports from payment processors, gateways and merchant accounts
  • Invoices, receipts and records of chargebacks, refunds and fees

2. Match Transactions

Once data is gathered, you’ll need to compare internal records with external reports. This involves:

  • Matching payments received with invoices or sales records
  • Verifying refunds, chargebacks and disputed transactions
  • Identifying any fees deducted by banks or payment processors

3. Identifying and Resolving Discrepancies

Businesses should investigate and resolve each discrepancy. Discrepancies can occur because of:

  • Time differences, such as when a payment is recorded in one system but not yet reflected in a bank statement and cut-off times for the financial institutions involved
  • Duplicate transactions due to accidental double billing
  • Unauthorized withdrawals or chargebacks

To simplify this process, businesses can use CSG Forte’s Dex software to respond to open claims and resolve them faster.

4. Record Adjustments and Finalize Balances

Once you’ve resolved disparities, you may need to make adjustments to financial records. This could involve:

  • Correcting errors in accounting entries
  • Updating revenue or expense accounts
  • Processing refunds or chargeback settlements

After adjustments are recorded, businesses can finalize their daily, weekly or monthly balances so all transactions are accurately reflected in their financial statements.

5. Document Process and Review

The final step entails documenting the entire process for internal auditing. Larger organizations may also have an approval process where senior teams review reconciled reports before they are officially recorded. With CSG, businesses can generate detailed reconciliation reports automatically. This makes it easier for companies to comply with industry regulations. Its cloud-based solutions allow finance teams to access reports from anywhere.
 

Importance of Performing Payment Reconciliation

Because the adjustment process can lead to errors, businesses must use an effective system to make the procedure more efficient. Here are the perks of using Forte’s reconciliation process.

Tracking All Payments

With a reconciliation system, businesses can ascertain that no payment goes unaccounted for. CSG’s tools simplify the handling of transactions by:

  • Matching payments with invoices, sales records and bank deposits in real time
  • Detecting discrepancies to reduce the risk of revenue leakage
  • Preventing fraud by flagging unauthorized or duplicate transactions

Real-Time Sales Reporting

Having a clear, real-time view of sales and revenue helps businesses make informed decisions. Businesses will have access to:

  • Instant transaction tracking so they can monitor payments as they are processed
  • Detailed revenue breakdowns to identify which payment channels are performing best
  • Data-driven insights so they can forecast revenue

All Financial Data in One Location

If these records are stored in different systems, businesses can use payment reconciliation software to consolidate all financial data into a single platform. This allows for:

  • A unified view of all incoming and outgoing payments
  • Seamless integrations with monetary systems
  • Automated financial records

Improves Accuracy and Compliance

Businesses that fail to reconcile payments properly may:

  • Report inaccurate revenue figures, which can lead to erroneous tax filings.
  • Face penalties for noncompliance with financial regulations.
  • Struggle with cash flow mismanagement, which can lead to operational issues.

CSG makes it easy for businesses to maintain accurate financial records, helping them stay compliant with industry standards.
 

Merchant Settlement Process

The merchant settlement process might seem similar to payment reconciliation, but the two serve different purposes. Payment reconciliation focuses on matching transactions across different records for accuracy and to detect discrepancies.

Merchant settlement is the process by which funds from customer payments are transferred to a vendor’s bank account after going through various stages of processing. Here’s how it works:

1. Initiation

The process begins when a customer makes a payment online. Payment is sent to the merchant’s fund processor, which routes the transaction through the necessary channels.

2. Authentication and Authorization

Before processors approve a payment, they must verify it. This includes:

  • Customer authentication: To check if the transition is legitimate, the processor may verify the cardholder’s details.
  • Authorization check: The issuing bank checks whether the account has sufficient funds or available credit to cover the transaction.
  • Fraud detection: Payment processors use fraud-prevention tools to flag suspicious transactions.

If approved, an authorization hold is placed on the customer’s funds, which temporarily reserves the money for the settlement.

3. Clearing

Once a transaction is authorized, it enters the clearing phase, where details are sent to the card networks or payment facilitators. Merchants may see transactions as pending while they await final processing.

4. Settlement

The settlement phase is where the merchant receives the funds. During settlement:

  • The issuing bank releases the authorized funds to the merchant’s bank, called the acquiring bank.
  • The acquiring bank subtracts processing fees before depositing the money into the merchant’s account.
  • Depending on the payment processor, funds may be deposited the same day, next day or within a few business days.

 

Contact CSG to Streamline the Process of Reconciliation

CSG has over 40 years of experience in billing, revenue management and payment processing. Our solutions eliminate manual reconciliation errors, accelerate cash flow and support compliance. With CSG Forte, you get a comprehensive platform that integrates with your existing systems. You can track transactions across multiple payment methods, detect discrepancies and automate workflows. CSG Encompass, our cloud-native solution, takes it a step further by centralizing data so you have a clear financial picture in real time.

Talk to a payments expert to get started.

 The Hidden Costs of Accepting Rent Via Paper Checks

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Property owners and their management companies spend hours each month collecting rent, processing checks and dealing with the associated delays, like waiting for physical delivery between banks and the dreaded chargeback—all while still paying fees for the privilege.

But here’s the kicker: collecting rent via paper checks is costing you way more than you think. From missed payments and banking fees to labor hours spent on manual processing, the hidden costs pile up quickly. What if there was a way to streamline your operations, boost cash flow and reduce overhead—all at the same time? The solution is simpler than you think: ditch the paper checks and embrace digital payments. Read on to learn how making the switch can save you big.

 

The Real Cost of Processing Paper Checks

Let’s be real: paper checks might seem like a hassle-free option for tenants, but for property managers, they’re anything but easy and simple. Between the bank fees, the labor costs and the constant juggling of late payments, the costs add up fast, as do the headaches. Here are just a few hidden costs:

  • Bank Fees: Every time a tenant hands over a paper check, you’re paying for the privilege of processing it. While it might feel like a small fee, each check typically costs between $3 and $10 to process when you factor in deposit fees, postage and any intermediary costs. Over the course of a year, those fees can start to feel like a second mortgage for your property management company. (National Apartment Association)
  • Time Is Money: Speaking of that second mortgage—how much time are you and your team spending on check collection? We’re talking manual processing, data entry, tracking down late payments, dealing with errors and reconciling accounts.
  • Late Payments: Nothing kills cash flow like tenants who don’t pay on time. And guess what? Paper checks are one of the top culprits. Delays due to postal issues, weekends or tenant forgetfulness leave you chasing payments rather than moving forward with your business. When rent is delayed, it can also cause late fee headaches that further strain your cash flow.
  • Chargeback Delays: Depending on the bank’s processes, it could look like funds are added to your account’s available balance the same day you make the deposit. It can take up to three weeks for banks to find out a check is no good—and bad checks cost real money.

So, while checks might feel like the easy way to get paid, the reality is they’re an expensive, slow and risky option for your business. By switching to digital payments, such as Automated Clearing House (ACH) payments and eChecks, you can streamline your collection process, avoid unnecessary fees and get your cash flow moving faster.

 

Digital Payment Systems: Save Time, Money and Headaches

Let’s face it—paper checks are a pain. But digital payments? Now, that’s a game changer. Switching to online payments isn’t just about convenience—it’s about cutting costs, improving efficiency and giving your team the freedom to focus on the bigger picture. Here’s why digital payment systems are a no-brainer for property managers:

  • Cost Savings That Add Up: Digital payments save you more than just time—they can put real dollars back into your pocket. From eliminating those pesky check processing fees to cutting down on bank runs and postage, digital systems streamline the entire payment process. That’s money that could be better spent improving your property or enhancing tenant services.
  • Faster Payments, Faster Cash Flow: Time is money, and with digital payments, you get both. No more waiting days or even weeks for checks to clear or for tenants to drop off payments. Digital payments are processed in real time, which means you can collect rent and fees faster, keeping your cash flow healthy. No more scrambling at the end of the month, no more late fees piling up—just steady, predictable income that comes in when it’s supposed to.
  • Say Goodbye to Errors and Discrepancies: Human error is always a risk when you’re manually entering check information, tracking payments or handling accounting. With digital payment systems, that risk virtually disappears. Automated features eliminate the chances of double-counting, misplacing funds or entering incorrect amounts. Everything is tracked and reconciled automatically, which means fewer mistakes, fewer tenant disputes and less stress for your team.
  • Happier Tenants = Happier You: Tenants (especially the younger ones) hate dealing with paper checks. From lost mail to forgetting deadlines, the process can be a hassle for them. But with digital payments, tenants can pay anytime, anywhere and on their own schedule. In fact, they can even pay in installments or prepay if they’d like. Whichever timeline works best, the process becomes fast, secure and convenient. Plus, digital systems often come with built-in reminders and confirmations, making sure your tenants stay on top of their payments without having to chase them down. Happier tenants mean fewer headaches, fewer late payments and better relationships all around.

Switching to digital payments isn’t just a trend—it’s the future of property management. By embracing digital payment solutions, you’re not only improving your bottom line, but you’re also enhancing your overall workflow, boosting tenant satisfaction and setting yourself up for success in a competitive market. Ready to leave the checkbook behind and embrace the future? The benefits speak for themselves.

 

Implementing Digital Payments: A Simple Switch for Big Rewards

Making the switch to digital payments sounds great in theory, but how do you implement it? It can sound daunting, but don’t worry—it’s easier than you think. Transitioning from paper checks to a digital payment system doesn’t have to be a headache. In fact, it’s a straightforward process when you break it down. Here’s how it works:

  1. Choose the Right Platform: The first step in ditching paper checks is picking the right digital payment platform. Look for a solution that integrates smoothly with your property management software and is simple for both your team and your tenants to use. Ideally, you want a platform that supports automatic rent collection, payment tracking and built-in reminders to help tenants stay on top of payments. Solutions like Forte partnered with key software companies in the property management space, offer these features and more, ensuring you have all the tools you need in one place.
  2. Communicate with Tenants: Making the switch to digital payments is an exciting change, but your tenants need to know about it. Start by sending out clear, easy-to-understand communications explaining why you’re making the switch and how it benefits them. Highlight the convenience of paying rent online—whether it’s via mobile phone, computer, or tablet. Don’t forget to provide instructions and offer customer support for those who might be unfamiliar with digital payment methods. The key is to make the transition as seamless as possible. A simple guide on how to set up their digital payments or a video tutorial can go a long way in helping tenants feel comfortable with the new system.
  3. Offer Multiple Payment Options: Not all tenants are the same, so offer multiple payment options to make sure everyone has access to an easy way to pay. Whether it’s ACH payments, credit or debit cards, or even e-checks, the more flexible your system, the better. Some tenants may prefer paying through their mobile phone, while others might want to set up automatic recurring payments to avoid forgetting. The more options you provide, the more likely tenants are to adopt the new system.
  4. Track Adoption and Optimize: Once your digital payment system is up and running, keep an eye on how tenants are using it. Are they adopting it quickly? Are there any roadblocks that need addressing? Gather feedback from your tenants about the system’s ease of use and make adjustments as needed. With digital systems, you can monitor real-time usage and quickly address any issues before they become bigger problems. Also, consider incentivizing tenants to make the switch early by offering a small discount on rent for those who pay digitally, or by implementing small rewards like raffle entries for tenants who set up recurring payments.

 

Effortless Payments, Big Results

Making the switch to digital payments is one of the easiest ways to streamline your property management operations and improve your cash flow. The benefits are clear—reduced administrative work, faster payments and happier tenants. By adopting a digital payment solution, you’re not just keeping up with the times; you’re getting ahead of the competition.

Ready to take your property management game to the next level? Our experts are ready to help. With CSG Forte’s payment platform, you can easily accept rent and fees digitally, all while cutting down on processing costs and boosting tenant satisfaction. Schedule a demo today to see how Forte can simplify your payment collection process and help you stay ahead in a fast-paced industry.