Category: Resources

The Ultimate Digital Payments Guide

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Digital payments have skyrocketed along with e-commerce in recent years. Most U.S. consumers today are familiar with sending and receiving e-payments, whether they understand how they work or not.

With more customers adopting new methods as tech evolves, your business faces the pressure of integrating multiple digital pay solutions. Understanding the changing landscape and future-proofing your business by leveraging the latest technology is vital to your success. By offering digital payment options, you can:

  • Remain competitive
  • Meet consumer expectations
  • Expand your reach
  • Enhance operational efficiency
  • Ensure data security
  • Optimize your customer experience

What Is a Digital Payment Method?

A digital or e-payment is a financial transaction completed without physically exchanging cash. This category includes electronic payments, which are transactions between a payer and payee using a digital device like a credit card, smartphone, PC or prepaid card. The payer and payee both need an account, online transaction method, device and transmission medium—like being signed up to a bank or payment service provider.

The Benefits of Digital Payments

Technology keeps evolving, and forward-thinking businesses must embrace its transformation to leverage the benefits that come with it. The benefits of digital payments include:

  • Greater accessibility for more customers, small businesses and merchants
  • Reduced costs through streamlining and efficiency
  • Increased transparency and security in trading
  • More control for your business and customers
  • Faster payments, compared to non-digital payment methods like paper check

The Role of Technology

Technology is critical in facilitating digital transactions. Technology provides:

  • The tools, security and capabilities necessary for seamless transactions
  • The means to empower digital transactions through efficient processing and data protection
  • Versatile payment options for customers, paving the way for e-commerce growth
  • Convenient, safe, customized digital payment options

Types of Digital Payments

Digital payments include transactions between you and your customer that use digital payment technology, including mobile wallets, credit cards, bank transfers, cryptocurrencies, peer-to-peer payments and contactless transactions.

1. Mobile Wallets

Mobile wallets or e-wallets are an online payment method that functions as an electronic version of a wallet. Digital wallets enable your customers to securely store payment information and access credit cards, gift cards, cryptocurrency and coupons. Popular mobile wallet providers include PayPal, Apple Pay and Google Pay.

Your customers can use e-wallets to make purchases online or through contactless payment terminals in-store. Customers can simply scan a payment code or tap their payment-enabled device to purchase items.

Not all merchants offer e-wallet payment methods—and when they do, their payment service provider (PSP) may restrict the types of digital wallets they accept. For a competitive edge, your business should work with a PSP that supports multiple e-wallet options alongside more traditional digital payment methods.

2. Debit and Credit Cards

Card-based payments are another way for customers to make cashless transactions. Debit cards are typically linked to your customers’ savings or checking accounts. When a customer taps, swipes or electronically pays, the purchase amount comes from their account. Credit cards are similar, but the funds come from borrowed money. Customers may also pay interest to the lender depending on the balance and terms of the credit card loan agreement.

Card payments are processed through a series of steps that involve a merchant, payment processor, card issuer and cardholder:

  • The cardholder—or your customer—initiates the transaction.
  • As the merchant, you send an authorization request to your customer’s payment processor.
  • The payment processor routes the request to the appropriate card network and then forwards the request to the card issuer.
  • The card issuer authorizes the transaction and sends information through the relevant channels, enabling funds to be paid.

Credit and debit cards are convenient and widely used, but they still come with a level of risk. Security measures are vital to protect against fraud and prevent unauthorized access to your customers’ data. Critical security measures include:

  • Card verification methods: You can use various verification methods, including pins, to guard against unauthorized transactions.
  • EMV chip technology: Chip technology adds a layer of security by encrypting data and providing unique transaction codes that make card counterfeiting difficult.
  • PCI DSS compliance: The Payment Card Industry Data Security Standard (PCI DSS) sets strict security requirements. Your organization must comply with these standards when dealing with cardholder data. The rules ensure businesses implement access controls and security measures to protect card and customer data.
  • Tokenization: Tokenization is a security measure that protects customer data during transactions. It works by replacing the customer’s primary account information with a token. Even if a hacker accesses the token, they cannot make further fraudulent transactions.
  • Encryptions: Encryption converts sensitive data into codes only decipherable with appropriate encryption keys. Encryption protects customer data during payment transmission and authorization.

Your security measures should include fraud monitoring and detection. A PSP can help by delivering sophisticated systems to assist you in identifying fraudulent transactions—for instance, some new systems leverage AI and machine learning to review historical data and flag fraudulent patterns.

Other card-based payment security concerns include skimming and data breaches. Skimming involves illegally capturing card data from customers’ magnetic strips or chips by tampering with payment terminals. Data breaches happen when hackers access and leak customers’ private information. Robust security measures can help you minimize fraudulent card activity.

3. Online Bank Transfers

Online bank transfers, e-checks, automated clearing house (ACH) transfers and wire transfers are electronic payment systems that function using internet-based platforms and mobile applications. Your customers can use smartphones, PCs and other devices to transfer funds to your business electronically. Financial institutions and banks throughout the U.S. offer online banking platforms.

Online bank transfers offer customers a convenient, transparent and accessible purchase method that’s relatively secure. Still, there are some risks associated with electronic transfers—cybercriminals can leverage phishing, identity theft, malware and hacking to access sensitive data during transactions.

Data breaches, unauthorized transactions, payment input errors and technical glitches are also concerns to consider.

4. Digital Currencies

Digital currencies, also called cryptocurrencies, are a virtual form of money that uses cryptography to secure transactions. What sets digital currencies apart from traditional bank systems is that crypto uses decentralized blockchain networks.

Digital currencies are stored and transferred electronically using digital wallets. Your customers can access e-wallets through mobile apps, online platforms and programs.

Digital currencies work on blockchain technology. A blockchain is like a digital ledger that records all transactions transparently and securely. Each transaction is divided into blocks and added to a chain of previous blocks, essentially forming a transaction history.

When a user makes a digital currency transaction, the network of computers or miners verifies the activity. Once authenticated, the transaction is added to the blockchain. Each user has a unique digital signature to verify their identity and validate the transaction.

If your business accepts cryptocurrency, you will receive payment in entirely digital currencies—the released funds won’t be in U.S. dollars.

The nature of cryptocurrency makes it extremely difficult for anyone to counterfeit or tamper with digital currency transactions. Digital currencies enhance privacy and provide rapid, low-cost transactions. Plus, digital currencies are decentralized networks. That currently means no single entity, bank or government controls them, though cryptocurrencies may be more regulated in the future.

Your customers can use cryptocurrency across borders. Some of the risks associated with digital currencies include price volatility and regulatory uncertainty.

5. Peer-to-Peer

Peer-to-peer (P2P) payments use payment gateway solutions to complete transactions. These gateways directly link the customer with your business bank account, eliminating the involvement of intermediaries. P2P payments are incredibly lucrative for small businesses due to their low setup costs.

For P2P payment to work, both the sender and receiver need compatible payment platforms. A sender uses contact information like an email address or mobile number and types in the payment amount. Once payment confirmation is complete, money transfers from the sender’s account to the receiver’s account.

Popular P2P payment apps include Venmo, Cash App, Zelle, PayPal, Google Pay and Apple Pay.

Peer-to-peer payment platforms are typically safe and easy to use. That said, transactions cannot always be reversed—so users should be mindful of scammers.

Keep these privacy and security considerations top of mind when using P2P payment platforms for business:

  • Use strong passwords and biometric verification to access P2P platforms.
  • Only transact using secure and trusted networks.
  • Ensure your P2P platform uses end-to-end encryption to safeguard sensitive data.
  • Always verify information to ensure the funds you receive or send go to the correct account.
  • Regularly update P2P apps to leverage the latest patches and security updates.
  • Review transaction history often to detect any unauthorized transfers or discrepancies.

6. Contactless Payments

Contactless payments are a broad category. Common methods of contactless payment include using cards, mobile devices or wearables to purchase items without swiping or inserting anything into a payment terminal.

Contactless payments leverage near-field communication (NFC) technology and radio-frequency identification (RFID) cards that enable devices to communicate when in close proximity.

When your customers want to pay using contactless methods, they just need to hold their contactless-enabled device near your payment terminal to complete the transaction quickly and securely. The convenience and ease of use make it a frictionless payment method for everyday purchases.

Contactless payments can come through any credit, debit or prepaid card with touch-free functionality. This method also includes mobile payment apps like Google Pay and compatible wearable devices such as smartwatches or fitness trackers.

Accepting contactless methods means giving your customers a quick way to shop your store or pay for your services. Consider implementing safety features to maximize the benefits and minimize risks:

  • Set transaction limits and enable pins or biometric verification to complete high-value sales.
  • Only use trusted and secure networks to prevent unauthorized access or interception of data.
  • Monitor transactions for suspicious activity to protect against fraudulent purchases.

Choosing the Right Digital Payment Systems

Giving customers the flexibility to choose between different payment methods is a great way to set your business apart and provide exceptional experiences. Selecting the right digital payment methods is vital to your success. Keep these three factors in mind.

Security Features

Your customers depend on you to deliver payment methods that are safe and secure to use. You need an experienced solutions provider who will work with you to provide a robust security payment platform and guide you on the best solutions for customers.

Control

You need a digital solution that provides granular control over how, when and where payments can be made. This level of control enhances security and empowers customers to choose their preferred transaction method.

Consumer Needs

Whether you’re in retail, banking, insurance or any other sector, customers want flexible and tailored payment solutions. Customers value smooth experiences and a business that offers them choices. Providing innovative, frictionless payment experiences is critical in retaining your existing customers and attracting new ones.

How CSG Forte’s Digital Payment Technologies Help

CSG Forte will help you deliver the digital payment services your customers want. We have helped thousands of telecom, insurance, government and other industry merchants revolutionize and systemize their payments. We provide:

  • Secure and reliable solutions: We simplify the security of all your digital payments by leveraging built-in Payment Card Industry (PCI) compliance, encryption and tokenization into our platform.
  • A complete solution set: Our platform supports any digital payment process and method you need, which means you can give your customers the flexibility and customization they want.
  • Superior customer experiences: We help you offer hassle-free digital payment methods, saving customers time and effort when transacting. The result? First-rate customer experiences.

Contact CSG Forte for Frictionless Digital Payment Methods

With over two decades of experience and award-winning solutions, CSG Forte will assist in streamlining your digital transactions and enhancing customer experiences.

Contact us today to optimize your digital payment methods.

Implementing a Transparent Payment and Fee Structure in Property Management

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As a landlord or property manager, you must provide honest insights about your payment and fee structure to maintain positive relationships. Promoting financial education and transparency with your renters can reduce administrative burdens and effectively fulfill tenant expectations.

Explore the importance of providing your renters with financial clarity and learn how a high-quality payment processing solution can benefit your business.

Strategies for Creating Your Payment and Fee Structure

Landlords and property managers can use a few techniques to streamline payment processes and provide renters with insight into their expected payments.

1. Clearly Outline Property Management Fee Structure

The first step in providing clarity is sharing a comprehensive, detailed outline of all charges your renters must pay and their due dates. The following are some common examples of rental fees to include in this breakdown:

  • Monthly rent
  • Security deposit
  • Application fee
  • Pet fee
  • Late payment fee
  • Utility fees
  • Maintenance fees
  • Parking fees
  • Move-in or move-out fees
  • Homeowners association fees

Be sure to share all payment-related information in each lease agreement. Your tenants deserve straightforward communication regarding how much you expect them to pay monthly. These insights help them budget to pay you what they owe in full and on time, fostering a mutually beneficial relationship.

Avoid charging hidden fees — these can create distrust, financial stress and legal issues. In October 2023, the United States Federal Trade Commission proposed a new rule to ban hidden and bogus fees, so it is best to forgo charging unexpected costs that could complicate compliance in the future.

Consider sitting down with your tenants to review all this information in person before they sign their agreement. Taking the time to educate them on the entire payment process and how your management business determines these fees can help renters understand their financial responsibilities.

If you offer multiple payment options, such as direct deposit, credit or checks, share the expectations for each method and any considerations for ensuring their payments are on time.

2. Prioritize Ongoing Communication With Tenants

In addition to sharing a full breakdown of rental expenses with each tenant, continue communicating about financial changes with your renters throughout their stay at your rental properties.

Keeping them abreast of new rates, fees or payment processes is crucial for nurturing mutual respect. Encourage them to ask questions and foster an open dialogue, and promptly resolve any issues regarding payment-related inquiries. Responding quickly and honestly to your renters’ concerns will make them feel like a valued part of your community and can also increase tenant retention rates.

By maintaining an ongoing conversation with your tenants about your payment and fee structure, you can avoid surprises and help them proactively prepare to make their payments on time.

3. Use a Robust Property Management Payment Processing Solution

CSG Forte’s payment processing platform is one of the best ways for landlords and property managers to establish a straightforward payment and fee structure.

These solutions can simplify payment history tracking and monitoring upcoming payments through a secure tenant portal. Keeping detailed records of each transaction, receipt and statement offers convenience and clarity for managers and renters.

CSG Forte enables you to offer your tenants different payment methods, including credit, debit, e-checks, digital wallets and automated clearinghouse payments, improving their experience and satisfaction with your property.

The Importance of Payment Transparency With Your Tenants

Why is payment transparency essential for a successful property management operation?

Improving Tenant Trust and Satisfaction

Renters want to understand how you calculate and justify your rates so they know where their hard-earned money is going. When your tenants are well-versed in their monthly financial obligations, lease renewal expectations and how your management team handles transactions, it instills trust in your business.

Delivering transparent insights into your payment expectations and a breakdown of what each tenant owes can also increase their satisfaction with their living arrangements. Trust and satisfaction in your property management style can lead to higher tenant retention rates, benefiting your bottom line.

Avoiding Disputes

Circumventing unnecessary misunderstandings is another reason property managers and landlords should prioritize transparency with their tenants. Many people’s rent and living expenses are their most significant monthly expenditures, and knowing how much they owe ensures they can cover these costs. Ambiguity or confusion regarding financial matters can lead to frustration, strain and conflict. Avoid these issues by providing accurate insights and communication about their monthly bills.

Encouraging Timely Payments

Your tenants can manage their spending more effectively when they know how much rent costs, what additional fees will apply and when those payments are due. Communication regarding expectations prepares your renters to make timely payments. It also inspires more accountability, respect and professionalism between property managers and tenants, which can motivate renters to uphold their end of the lease agreement.

Timely payments positively impact your business’ cash flow and save your team from wasting valuable time and chasing overdue charges.

Building a Positive Reputation

Many potential tenants looking for a place to live will read testimonials and reviews about your property management company. It will impact your business’ reputation if your current or former renters believe you are not entirely honest about your fee structure or you charged hidden expenses they hadn’t anticipated paying. Negative attitudes toward your payment model can make filling those empty units more challenging and expensive.

Conversely, transparent communication regarding tenant expenses can foster respect and satisfaction, building your reputation as a respected and ethical choice for new tenants.

Get Started With CSG Forte Today

CSG Forte makes managing tenant payments easy for landlords and property managers. Our platform can help you reduce administrative burdens and deliver a better payment experience to your tenants.

We have extensive experience in the property management industry and understand the importance of delivering convenient payment solutions to your renters. The CSG Forte platform enables you to accept various forms of payment, and your tenants can set up recurring monthly payments to ensure their rent and fees are always on time and in full.

Are you ready to streamline payment management? Get started with CSG Forte today.

What Are NSF Payments? NSF Re-Presentment Basics

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Handling returned non-sufficient funds (NSF) automated clearing house (ACH) payments accurately and efficiently helps businesses protect themselves from financial losses by minimizing the impact of unpaid transactions. Promptly addressing NSF returns through clear communication, compliant follow-up procedures and a timely resolution enables merchants to recover funds and prevent further losses. Streamlined handling can also help businesses maintain strong customer relationships, reducing the likelihood of service disruptions due to unsuccessful payments.

At CSG Forte, our recovery solutions can help equip your business to handle NSF returns effectively. Our re-presentment options enable you to recover the funds for each NSF payment at no charge to you. More importantly, these automated solutions save significant time and resources, allowing you to focus more on the responsibilities that matter most for your business.

What Is an NSF Return?

An NSF return in banking stands for non-sufficient funds, otherwise known as an ACH network payment that was returned due to its inability to be completed. This means the bank has refused to honor the payment because there isn’t enough money in the account to cover it. Having a check returned due to NSF is often referred to as having a “bad” or “bounced” check.

When the merchant processes the payment and the receiving bank returns it due to non-sufficient funds in the account, this situation can result in fees for both the payer and the recipient trying to collect the funds. These fees are known as NSF fees or returned item fees, which are charged to the account that lacks the funds to cover the payment.

How NSF Fees Work

NSF fees can occur as a result of a customer writing a check or making an ACH payment believing they have ample funds available for a transaction. For instance, let’s say a customer has $2,200 in their checking account and makes a purchase of $2,000 for your product or service. However, it turns out that customer had recently withdrawn $300 from an ATM and forgot to account for it.

Because of this oversight, let’s say the customer makes an online ACH payment for $2,000 when their bank balance is only $1,900. Their payment is $100 more than what they currently have available. It’s possible this payment could be returned due to NSF and incur a fee to the customer’s bank account.

FAQs About an NSF Return

A returned NSF payment can be complex to navigate and remedy. Here are some commonly asked questions about what to do when you receive an NSF return and how to avoid them in the future.

1. Are NSF Fees the Same as Overdraft Fees?

Anyone who has tried spending more money than what’s available in their bank account has likely been issued an overdraft charge or an NSF fee. Although many believe the two terms are interchangeable, there are some critical differences between them:

  • Overdraft fee: Banks typically charge overdraft fees when they allow a transaction to process that would have otherwise overdrawn an account. Customers can view an overdraft as a temporary loan from the bank, and they can expect to pay back the amount the bank covered plus an overdraft fee. For example, if you have $200 in your checking account and initiate an electronic check payment for a purchase of $230, the bank may accept the check. However, your account balance will be in the red by $30, incurring an overdraft fee. Overdraft fees have typically been around $35 per transaction for most large banks.
  • NSF fee: Banks commonly charge an NSF fee when an account lacks the funds required to cover a transaction and the bank doesn’t permit the transaction to process, resulting in a bounced check or denied electronic bill payment.

2. What Happens When an NSF Payment Is Returned?

When an NSF return occurs, a number of consequences may follow. The payor’s bank makes one of two choices:

Allow the Payment

The bank may decide to let the ACH payment or check post. This, however, would put the account holder into an overdrawn status. For some banks, this means the bank will charge a fee for overdrawing the account. The bank may continue to charge for each day or it can charge a specific flat fee to cover the amount that the account is overdrawn. These charges can end up burning quite a hole in the wallet.

Refuse the Payment

The bank may refuse to honor the payment. The bank will not allow the funds to be processed, and the account holder will likely be charged a fee just for issuing the payment without having funds available.

If a check is returned due to NSF, it could potentially sink the depositor’s account into overdrawn status, also initiating an overdraft fee.

3. What Do I Do When I Get a Check Returned Due to NSF?

Consumers who get charged an NSF fee will have to pay the fee as outlined in their bank’s policy. The merchant will likely try to contact the customer about the returned payment. This is an important step because an NSF payment isn’t always intentional.

The merchant can send a new bill for the original item the customer purchased, the NSF returned check fees and any fees received for trying to deposit an NSF payment. If possible, the merchant can try to deposit the payment again manually. However, this step should be taken with caution as there’s always a chance the check could bounce again and incur another fee. This is also can be a manual process for a merchant to manage.

Businesses that still do not receive payment may send a demand letter, hand the payment over to a collection agency or initiate legal actions in a small claims court.

Working with a trusted payments partner like CSG Forte can help merchants navigate arduous NSF payments and automate the process to make recovery simple.

5. How do You Protect Your Business From NSF Payments?

NSF payments can be very frustrating and costly to businesses that need to process the transactions. Some businesses decide not to accept ACH payments or checks at all as a last resort. For example, debit card payments are authorized in real time, enabling you to confirm that the customer has enough funds for the purchase. However, this choice limits payment options for your customers.

For many businesses, accepting paper and eChecks is a wise decision. This practice gives customers the flexibility of selecting a payment option that works for them—and many people want to simply have a payment come right out of their bank account.

But how can businesses handle NSF payments? It’s wise to have a plan in place so that when NSF payments appear, they aren’t a complete disaster. NSF re-presentment is your best option, as it allows you to recover the funds for each unsuccessful ACH transaction.

Some other tips for protecting your business against NSF checks include:

  • Create a check acceptance policy and ensure employees follow it.
  • Train staff on red flags to look for, such as missing the preprinted name and address or having a fake routing number.
  • Require ID verification when accepting a check in person.
  • Use a verification service like CSG Forte Validate+ before accepting payment.

6. Can I Redeposit an NSF Check?

Yes. It’s possible to recover the funds by attempting to re-deposit the payment once it is returned, also known as NSF re-presentment.

7. What Is NSF Re-Presentment?

When an NSF payment occurs, re-presentment will strategically re-present the payment at a later date. This way, the payment has another chance to clear. CSG Forte’s NSF re-presentment option lets you select the date you wish to re-present payments that are returned, enabling you to choose a time when you think there is a stronger likelihood that the funds are available with your customer base.

You may know, for instance, when your customer gets their paycheck. Scheduling NSF re-presentment on or directly after this date increases your chances of accessing the funds and clearing the payment.

The Benefits of Using CSG Forte’s Recovery Solutions

Whatever the causes, NSF payments cost your business valuable time and money. At CSG Forte, it’s our goal to help streamline payment processing and protect your business from potentially nefarious actors. Our recovery solutions allow businesses to automate the process of recovering NSF payments. We will attempt to re-collect NSF payments up to two times on your behalf for ACH payments, saving you significant time and hassle. Benefits you’ll enjoy with this service include:

  • Improved payment recovery: Our smart re-presentment functionality allows companies to re-present payment when they will most likely receive a recovered payment.
  • Boosted revenue: Besides receiving the complete value of recovered payment, your business will receive part of the collected NSF fee and experience a revenue share.
  • Nacha compliance: Recover NSF payments with peace of mind. Our recovery solutions meet Nacha regulations.
  • Reduce service disruptions: Enhance customer satisfaction by reducing service disruptions due to incomplete or returned payments.

How It Works

At CSG Forte, we make collecting NSF payments simple. When you’re hit with an NSF payment, our solutions will automatically attempt to recollect the ACH or eCheck payment up to two times. Here’s how it works:

  • Returned NSF payment: Our recovery solution automatically queues the payment for strategic re-presentment.
  • Automated re-presentment: Using our advanced re-presentment technology, we strategically reattempt payment.
  • Successful collection: If the collection is successful, your business will receive 100% of the face value of payment.
  • Unsuccessful returns: If we cannot successfully recover the payment for you, we’ll return the check to you so you can move into collections and get your funds back. With a 60% average recovery rate, we’re confident we can help your business collect payments and avoid returned payments in the future.

Get in Touch With Us Today

When a customer’s payment is returned, it results in frustrating service disruptions and cash flow issues. At CSG Forte, we’ve developed a solution to automate the process of reattempting and collecting payments lost to NSF checks at no cost to you. With our recovery solutions, you can minimize the risk of time-consuming recovery processes and focus on driving business growth. Contact us today to learn how one large enterprise organization recovered $78 million through CSG Forte’s recovery solutions.

 

Deferred Payments vs. Installment Plans

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Purchasing a good or service from your business may be more manageable if the customer can break up their payment or settle their balance at a later date. The revenue will still come your business’s way in the future, while the flexibility can convert some undecided leads into paying customers. Deferred payments and installment payments are two options that make purchases easier for the customer.

At CSG Forte, we help businesses drive revenue by providing tailored payment solutions that are compatible with flexible structures.

What Is a Deferred Payment?

Deferring a payment means the customer can access the product or service now and pay in full at the end of a three-phase process.

The first phase is the purchase agreement. You provide what the customer needs with little to no upfront expenses. The customer agrees to submit a deferred payment, meaning they will settle up in full later. You and the customer enter a purchase agreement that includes a deferral due date.

The second phase—the deferment period—is the time between the agreement and the payment due date. You can send due date reminders to your customers during this time, either independently or through the payment service provider.

The third phase is the payment period, which begins on the payment due date. Your customer is responsible for paying the full balance at that time. Some deferral agreements allow the customer to begin a payment schedule starting on the due date.

Common Reasons to Defer Payment

Deferred payment is an option when the customer needs a product or service immediately but has immediate financial constraints. Common deferred payment use cases include:

  • Business-to-business (B2B) transactions: Businesses can receive essential products and services quickly and agree to a deferred payment date.
  • Retail purchases: Consumers can take home expensive goods to use that day with payment deferred, meaning they can repay the merchant later.
  • School tuition: Universities and student tuition financers set due dates after the student receives some or all of their education.
  • Healthcare: Practitioners often provide the care patients need when they need it, then allow patients to pay the bill later.

What Is an Installment Payment?

An installment payment is one a customer submits as part of a payment plan. Within this structure, you provide access to the good or service that your customer needs. The customer agrees to repay their balance over time in regular installments.

Many installment plans require monthly payments with a minimum amount. Customers can submit payments manually on or before their due date or schedule automatic withdrawals from their bank account through Automated Clearing House (ACH) processing. Many agreements allow customers to pay more than their minimum amount for faster reconciliation and lower interest.

Your business can offer installment options independently or with support from a third-party payment service. A payment service provider will grant access to merchant- and customer-facing resources curated and managed by a business that specializes in payment collection.

Common Use Cases for Installment Payments

The installment payment model is a common solution for large B2B and business-to-customer (B2C) transactions. Some examples include:

  • Consumer purchases: Consumers can enter an installment agreement when purchasing expensive items such as appliances, furniture, electronics or music equipment.
  • Inventory and equipment: Businesses might enter installment plans to finance the purchase of equipment, materials or products essential to their revenue.
  • Real estate and car financing: Financing options for major purchases require monthly minimum installments with interest.
  • Credit card payments: Credit cards grant consumers and businesses purchasing power with a purchase limit and installment requirements.

Common Benefits From Deferral and Installment Agreements

Deferring or dividing large payments can benefit the merchant and consumer alike:

For merchants, the advantages include:

  • Customer satisfaction: Meeting customers with flexible payment options builds brand loyalty.
  • Increased sales: Offering a lower upfront cost boosts conversion rates and creates room to upsell.
  • Tax deferral: Deferring earnings allows businesses to disperse the earnings of one sale across numerous statements.

Customer benefits include:

  • Immediate access: Deferral grants immediate access to valuable goods and services.
  • Financial planning: Consumers can form a savings plan and budget with a set date in mind.
  • Buying power: Customers have funds available to complete other pressing transactions that impact their cash flow.

The Key Difference Between Deferral and Installment

While deferral and installment agreements share some common principles and benefits, installments offer advantages over deferral:

  1. Cash flow: An installment agreement establishes a payment schedule and disperses the entire balance across those dates, creating consistent revenue from one sale.
  2. Recovery: Installments allow customers to pay smaller amounts that are easier to include in their budget than a lump-sum payment.
  3. Bookkeeping: Revenue from installments enters the books as you receive it, meaning you report the revenue you have received and not what your customer still owes. Deferred revenue requires revenue recognition as a debit or amount owed.

The Challenges of Deferred Payments and Installment Plans

Deferred payment means deferred revenue, just as fractional installment payments mean fractional revenue. You can still factor the money from a deferred or dispersed payment into your budget, but be careful—a default could leave you with less than you need to fulfill your own obligations. Customer defaults could also impact your credit score.

CSG Forte’s Tailored Solutions for Payment Plans

At CSG Forte, we support merchants’ installment agreements by developing complete payment solutions that help to mitigate customer default. We implement dependable collection strategies and innovative technology to facilitate installment agreements and maximize recovery.

With our platform, your customers will experience a smooth, secure payment process that connects you with the revenue you earned. The automated communication systems will deliver timely messages reminding customers of due dates and account balances. Customers can pay how they prefer by using a credit card, debit card or ACH processing. The software integrates seamlessly with your existing accounting programs.

We set our platform apart by implementing features and capabilities like:

  • Seamless integration with business operations
  • Enhanced data security and fraud prevention measures
  • Ongoing support from our customer service department
  • A user-friendly interface for your business and your customers

Cross-Industry Success With CSG Forte’s Installment Payments

Our payment solutions have made a difference for merchants and service providers across multiple sectors. We have experience tailoring our solutions to the needs of healthcare providers, insurance companies, retail stores, software vendors and more.

We encourage you to contact us online to learn how we can tailor a payment solution to your needs.

SEC Code Glossary: A Quick Guide to Entry Class Codes

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In the world of electronic payments, the National Automated Clearing House Association (NACHA) governs and dictates the regulations for processing electronic transactions through the Federal Reserve. The regulations are serious, utilized in legal proceedings regarding transactions and relied upon by banks, payment processors, and both federal and state governments. NACHA keeps the order for the industry, and it’s important to abide by every one of its regulations.

Whenever a transaction is submitted, NACHA needs an SEC code along with it.

What Is an SEC Code?

SEC stands for “Standard Entry Class” and is a code that denotes the way a customer authorizes a payment. When you apply for payment processing, sometimes you will find that certain types of payment methods are associated with lower costs. An SEC code tells you or the entity involved in the transaction what type of transaction you’re dealing with. Using the right code helps everyone stay regulation-compliant and accurate. Incorrect codes can lead to errors, delaying or even rejecting payments. Mastering SEC codes ensures payments move smoothly and securely around the world.

Common SEC Code Meanings

There are dozens of SEC codes out there, each with its own meaning. Let’s take a look at some of the most common codes to help you navigate this world.

POS/POP

Point-of-Sale (POS) and Point-of-Purchase (POP) entries refer to single debit payments made in-person via credit/debit card (POS) or converted check (POP). Both the card and the check are used to record the account information in association with the payment, and the original payment method is then returned to the customer.

PPD

Prearranged Payment and Deposit (PPD) refers to Direct Deposit entries and any Preauthorized Bill Payment applications. In this way, these payments can be both debits or credits (meaning funds can be removed or deposited into an account) and either single or recurring (occurring as a one-time payment or scheduled multiple payments).

WEB

A Internet Initiated Entry (WEB) is simply any debit via the Internet. These entries may be single or recurring.

The receiver must authorize these debits via the Internet. In other words, if the authorization was actually received in person, via U.S. Mail or by phone, for example, even to suffice for a payment from the Internet—it’s not really a WEB entry.  However the authorization was received is how the transaction must be classified via the SEC code.

Also, bear in mind that you may only initiate a credit here as a reversal of a WEB debit. You can’t submit a credit using the WEB entry code.

TEL

Telephone Initiated Entry (TEL) entries are single debit entries authorized via the telephone. In this oral authorization entry there must be a pre-existing relationship between the receiver (person authorizing the payment) and originator (person/entity receiving the payment). If there is no relationship already in place, then the receiver has to make the phone call.

Additionally, all TEL transactions have to be recorded and kept on file for a minimum of two years from the date of the transaction. If the transaction is not recorded, then the originator needs to provide the receiver with a written notice that confirms the oral authorization before the payment settles.

CCD

The SEC code Corporate Credit or Debit (CCD) is also known as “Cash Concentration or Disbursement.” A CCD payment is either a credit or debit – and occurs specifically between corporate entities. It can be a single entry or recurring.

All business bank account transactions are listed under this SEC code. Prior to the transaction date, a signed authorization must be obtained either separately or included in the contract between the businesses.

ARC

An Accounts Receivable Entry (ARC) is defined as a check conversion that is originally received via the U.S. Mail. This includes the United States Postal Service (USPS), as well as courier services like FedEx and UPS. According to NACHA, this does not include personally delivered or night drop-box items. Corporate checks are also not included.

CTX

Corporate Trade Exchange (CTX) entries are initiated by originators to pay or collect their obligations. The funds are transferred to other organizations and so mirror the same business entity requirements as the CCD entry code. Both credits and debits are allowed.

RCK

The Represented Check Entry (RCK) entry refers specifically to single debits that occur as a result of check representment. Check representment occurs after an item is returned Non-Sufficient Funds (NSF) or is bounced. The service will simply represent the check at a later, scheduled date after it is returned. Some businesses choose to initiate check representment in order to attempt to recollect their funds. For merchants that use RCK entries, a notice must be displayed visibly at the POS.

BOC

Back Office Conversion Entry (BOC) entries are single debit entries that are initiated by source documents (checks) received at POP or staffed bill payment locations (in-person). These checks are collected first and then converted to ACH transactions during back-office processing.

CIE

A Customer Initiated Entry (CIE) is a credit initiated usually through a bill payment service by an individual. These are meant to pay an obligation.

XCK

The Destroyed Check Entry (XCK) refers to a replacement entry that is initiated when an original check is unreadable, lost or destroyed and cannot be processed.

SHR

A Shared Network Transaction (SHR) is used for transactions at POS terminals in shared networks. Debit card transactions at retail stores are examples of an SHR. The SHR then supports transactions between the customer, bank and merchant.

MTE

Machine Transfer Entry (MTE) codes are used when someone initiates an ACH transition at an Automated Teller Machine (ATM). The MTE code tells the relevant entities that the fund transfer, withdrawal or deposit happened at an ATM.

IAT

International ACH Transaction (IAT) codes appear with financial institutions outside the United States. Any transactions that occur across borders are subject to international payment regulations, and the IAT code ensures compliance with international screening requirements.

ENR

Automated Enrollment Entry (ENR) codes are often used by federal agencies to enroll their customers in direct deposit programs, such as Social Security or veterans’ benefits. They simplify the enrollment process.

COR

Notification of Change or Refused Entry (COR) codes come into play when ACH codes are corrected or changed. Any outdated or incorrect account numbers that need changing are adjusted and sent with the COR code. The COR code tells the original entity there was an ACH transaction error. COR codes keep ACH transactions accurate without extra delays.

DNE

Government agencies use Death Notification Entry (DNE) codes to inform financial institutions of an account holder’s death. These codes are needed to terminate benefit payments sent to the account holder.

ADV

Automated Accounting Advice (ADV) codes are only used by financial institutions. They help them track ACH entries and keep their records accurate.

ACK

The Acknowledgment Entry (ACK) code gives the original company a transaction receipt. When corporations complete transactions, the transaction’s originator can ask for acknowledgment of successful payment. The ACK code lets them know their funds were transferred successfully.

Streamline Your Payments With CSG Forte

Navigating the complexities of SEC codes and payment processing is challenging. How do you keep everything accurate, compliant and secure on your own? CFG Forte is your partner in simplifying the payment process without sacrificing scalability and reliability.

At CSG Forte, we’ve spent over 20 years perfecting our payment approach. Our comprehensive suite includes built-in Payment Card Industry (PCI) compliance, tokenization and encryption, keeping you secure and compliant.

Choosing the right SEC codes is just the first step. As your partner, we’ll give you the tools and support needed to streamline payment processing. With CSG Forte, you can access a secure, cloud-based platform that turns payments into a profit center. Ready to simplify your payment processes? Contact CSG Forte today to see how we can advance your payment strategy!

 

Navigating the Complexities of Payment Processing in Government Institutions

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Constituents demand seamless online experiences, and that extends to payments they make to government agencies. Discover the challenges associated with collecting government payments, and explore government payment solutions that will help streamline your operations.

6 Challenges of Government Payments

When setting up a payment processing solution, government organizations must manage compliance, security, system integration and more—all while making the system easy to use. As a result, they might face the following challenges:

1. Protecting Constituents From Fraud

There are two significant concerns when it comes to security for government organizations collecting payments—losing funds and losing trust.

First, there’s the impact on your financials. The Association for Financial Professionals (AFP) reports that 80% of organizations were targets of fraud in 2023, up 15 percentage points from 2022. Additionally, around 30% of the organizations that lost money due to fraud were unable to recover any of the funds.

Further, there’s the impact on your constituents. In 2023, data breaches impacted more than 353 million people. To ensure your constituents feel comfortable paying taxes, penalties or other fees online, you must prioritize cybersecurity. Here’s how:

  • Require two-factor authentication (2FA) or biometric authentication to better secure constituents’ accounts.
  • Replace sensitive data, such as credit card numbers, with randomly generated tokens.
  • Disguise card data during payment transmission.
  • Set up hosted payment pages to ensure your organization doesn’t hold onto data unnecessarily.

2. Adhering to Compliance Standards

Meeting compliance standards keeps data safe. One of the most significant is the Payment Card Industry Data Security Standards (PCI-DSS), which applies to any organization that collects cardholder data. You can complete your own compliance assessment on the PCI website, validate your compliance through a third-party Qualified Security Processor (QSA), or enroll in a PCI-DSS compliance program.

Federal agencies that collect cardholder information must also comply with Office of Management and Budget (OMB) guidelines on personally identifiable information (PII). Maintaining compliance builds trust with constituents and reduces the risk of data breaches and other security threats.

3. Keeping Track of Data

Given the volume of transactions, tracking payment data can be challenging. With a reliable payment processing solution, your organization can access transaction breakdowns and insights into payment methods. You can analyze general data or dive deeper into the specifics by looking at specific transactions.

4. Accepting Multiple Types of Payments

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

Multiple payment options give constituents more flexibility and allow them to make convenient payments. You can also expand your offerings with multichannel payment processing, including:

  • IVR solutions: Accept payments with a pay-by-phone interactive voice response (IVR) solution. An IVR answering service lets you accept payments 24/7 and is more secure than live agents transcribing card numbers and other payment data over the phone.
  • In-person solutions: Some constituents may prefer making in-person payments or you may need to accept payments at a government office. It’s key that you offer an in-person payment solution that integrates with your digital payment options, making payment on any channel easy.

5. Scaling According to Future Needs

The ideal payment processing solution handles a high number of transactions without disruptions or delays. For example, local governments often see a spike in payments during tax season, and their payment processing solution must be able to scale to meet these inflated annual demands. Additionally, fast-growing municipalities should be able to meet their new residents’ needs.

6. Integrating With Existing Systems

Many government organizations use complex legacy systems or software solutions, which can make integrating payment solutions more difficult. Look for a platform that can integrate with your organization’s current web interface to streamline payments for constituents and simplify operations for you.

Benefits of Digital Government Payments

Reliable digital solutions—such as ACH and credit card processing for government agencies—can streamline your operations, keep constituent data safe and scale according to your future needs. Here are more benefits of implementing digital payment solutions:

  • Expand revenue streams: With online and IVR payment options, your organization can accommodate people who don’t have immediate access to funds by allowing them to pay via credit card.
  • Reduce late payments: Giving constituents more ways to pay may reduce the likelihood of late payments.
  • Receive payments quickly: With a simplified payment processing solution, you can receive payments quickly, which improves cash flow.
  • Receive more data: Gain access to transactional data and identify trends that guide your organization.
  • Devote fewer human resources to processing: With more streamlined operations, your personnel can focus on high-value government initiatives rather than spending excessive time on manual accounting and reconciliations.
  • Simplify tracking: Credit card and ACH processing for government payments provide an easy-to-access payment record that simplifies tracking efforts.
  • Provide an easy payment solution for tourist locations: If your city frequently welcomes international tourists, a digital government payment solution means they will not have to carry local currency and can easily pay for parking or other amenities with a card.
  • Allow constituents to set up automatic payments: Automating government payments gives constituents peace of mind that they will not miss a personal income tax payment, business tax payment or other regular payment.
  • Increase trust with constituents: A convenient, secure and frictionless payment experience increases constituent satisfaction and may increase their confidence in your organization.

How CSG Forte Helps Streamline Government Payments

CSG Forte understands how challenging government payments can be to manage. Our government payment platform enables your organization to manage payments swiftly, whether you’re dealing with local utility payments, state taxes or grant payments.

With our solution, you can accept debit card, credit card, ACH and digital wallet payments. We also allow you to charge constituents a convenience fee to recoup the cost of merchant fees, which you must pay every time an individual pays via a credit or debit card.

You can also explore IVR payment options to provide the utmost convenience for your constituents. Our payment platform is Level 1 PCI-compliant, with features like tokenization and encryption to keep payment data secure and increase trust with your constituents. If you want to integrate your new payment platform with your existing web interface, you can work your way toward successful implementation yourself or receive support from a dedicated integration specialist.

To see how CSG has already helped other government organizations, explore case studies from Lucas County, Ohio, and Kinston, North Carolina.

Contact CSG Forte to Learn More About Forte for Payment Processing

CSG Forte has decades of experience assisting over 81,000 merchants across North America. With our solution, you can reduce administrative burden and rely on a customizable platform that prioritizes security and user-friendliness.

Leave the complexity to us. For more information on implementing CSG Forte at your government organization, talk to a CSG expert today!

 

How Can ACH Payments Simplify Payments for Property Managers?

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As a property manager, dealing with late rent payments, manual processing and human errors each month can be frustrating and time-consuming. Luckily, digital payment options can ease many of these burdens by providing your business and its tenants with streamlined payment collection solutions that offer enhanced security, traceability and convenience.

Automated clearing house (ACH) payments are becoming an increasingly popular option among property managers and landlords—and for good reason. These systems effectively simplify how your business facilitates taking payments, providing better experiences for your renters. Explore the key advantages of leveraging ACH payments below.

Using ACH for Rent Payments

An ACH payment is a type of electronic funds transfer (EFT) that allows users to send and receive money electronically between bank accounts. ACH is especially useful for property managers and landlords to simplify how they facilitate payments associated with their rental properties.

ACH transactions can optimize property management payment processing for various types of transactions, including the following:

  • Rent collection
  • Contractor fees
  • Security deposits
  • Utility bills
  • Homeowners association (HOA) dues

Benefits of ACH Payments for Property Managers

Property managers can deal with a high volume of monthly transactions, and leveraging ACH can help them manage payments more effectively. Explore some of the key advantages of using automated clearing house payments for your business.

Enjoy Cost Savings

As a landlord or property manager, processing paper checks for your tenants can quickly become expensive. ACH payments offer a cost-effective way to collect rent payments and security deposits. Streamlined payment processing means fewer labor costs associated with collecting and correcting renter transactions. Your business also does not have to deal with hidden fees.

Save Time

Another key advantage of using ACH is saving significant time each month. Collecting, processing and depositing rent checks can require hours of manual labor every week. ACH payments automate the fund transfer process, enabling your team to save time and energy you can spend on other essential management tasks.

Boost Cash Flow

By providing renters with convenient recurring payment options, you can enjoy a more predictable income stream and better cash flow management. Automation helps reduce administrative and transaction costs, helping your business improve profits. ACH payments also streamline debt collection efforts, making recovering overdue or returned payments faster and more effective.

Improve Tenant Relationships

Landlords and property managers can improve their relationships and reputation with their tenants by offering ACH payments. These systems provide renters with increased convenience, predictability, flexibility and security, making monthly rent transactions easier than ever. You can support improved satisfaction and a positive rental experience for your tenants.

Simplify Reconciliation

ACH payments also support easier reconciliation processes by providing the following:

  • Detailed transaction information
  • Automated recordkeeping
  • Real-time updates
  • Fewer human errors
  • Audit trails

With more accurate and accessible financial reporting through ACH transactions, you can enjoy streamlined property management processes.

Benefits of ACH Payments for Renters

In addition to benefiting landlords and property managers, ACH payments are advantageous for tenants looking to simplify how they pay their monthly rent. The following are some key perks of leveraging ACH transactions for your renters.

Cost-Effectiveness

ACH payments come with few or no processing fees for renters. These payment solutions are typically more cost-effective than other common money transfer methods, such as paper checks. Most financial banking institutions require customers to pay for physical checks, a cost that adds up over time.

ACH costs are also significantly cheaper than processing paper checks, which can be subject to a range of internal and external fees, from network processing to postage expenses.

Convenience

Making ACH payments is very convenient for your tenants. When using ACH, property managers can make it easy for tenants to set up recurring rent payments. Tracking ACH payments is also a huge benefit. Your renters don’t have to worry about a physical check getting lost in the mail or arriving late. They can view their transactions online and ensure you’ve received their money. Offering convenient, automated ACH payment options can increase the likelihood of renters making on-time payments.

Greater Security

Another advantage for renters using ACH payments is enjoying safer money transfers. The ACH system is a government-established solution and must meet strict federal regulations for online payment security.

Nacha, which is the organization that oversees the ACH network, offers additional risk management services to protect these digital transactions and combat fraud.

Flexibility

Today’s renters want flexibility. Making ACH payments allows them to schedule their payments in advance and leverage automatic recurring charges, giving them greater control over their finances and peace of mind. Your tenants will also appreciate being able to pay via the methods most conducive to them and their preferences.

Fewer Errors

Human error can complicate rent payments. Whether they accidentally enter the wrong account number or payment amount as they complete their monthly rent transactions, a minor mistake can lead to late fees and headaches. An ACH payment solution lets them enter and authorize their banking information once, ensuring accuracy. Then, they can rely on automation to facilitate correct, on-time payments.

How to Set up ACH Payments for Rent

The best way to set up ACH payments for renters is to work with a trusted payments provider, like CSG Forte. We have extensive experience in the property management industry, and our platform makes accepting ACH payments from your tenants simple. We understand the importance of receiving rent payments on time to protect your bottom line.

CSG Forte will improve your payment processing and deliver outstanding data privacy and security, so you can feel good knowing your renters’ information is safe. We’ll help you streamline your administrative processes while reducing late payments and fraud.

Contact CSG Forte to See Our ACH Platform in Action

Property managers and landlords can easily capitalize on ACH payment processing with CSG Forte.

Give your tenants an easy, secure way to pay their rent and receive your payments on time every month. Our platform makes tracking funds and managing transfer confirmations simple. It offers access to over 20 banking institutions and enables same-day payment options for remarkable convenience for you and your renters.

Are you interested in learning more about our one-stop shop for payment processing? Contact CSG Forte to get started today.

What’s a Payment Channel?

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Today’s consumers have tons of options when paying for goods and services. From pulling out cash to quickly tapping a phone or credit card near a terminal, payment methods have expanded to include an array of choices, each with its own perks and drawbacks. Offering these different methods of payment—also known as channels—creates benefits for businesses and customers. Before you set them up, you’ll need to know the difference between channels and how to implement them in your organization.

What Is a Payment Channel?

A payment channel is any way a customer might make a payment or anywhere that you, a merchant, might accept a payment. A payment channel includes a payment method, such as a debit card or a bank account, and the technical infrastructure that allows businesses and financial institutions to verify transactions and send funds. The infrastructure might include steps like securely sending card information entered into a website or checking the transaction for potential fraud.

Retail channels are a similar yet distinct concept. Retail channels cover different ways people can shop, like brick-and-mortar stores, catalogs and online shopping sites. Payment channels are generally related to these retail channels but are more specific to how people make payments. They correlate to retail channels but leave some room for overlap.

For example, at a brick-and-mortar retail channel, you might process payments on a physical point-of-sale (POS) system—a cash register—as well as on smartphones or tablets within the store. Your catalog might accept payments by phone but also integrate into an omnichannel approach. Customers could walk into your brick-and-mortar store to pay at the POS, or they could shop the catalog online and pay via online checkout.

Payment and retail channels closely relate to each other. Since you definitely want to create a cohesive, omnichannel experience, it’s essential to consider what payment channels you might implement. Some of the most popular options include:

Physical POS Systems

Most brick-and-mortar stores have a POS of some kind. These systems allow businesses to take in-person payments such as credit and debit cards, cash and checks. A physical POS can use more traditional technologies as a standalone system, but mobile POS systems are also common. A mobile POS uses devices such as smartphones and tablets to process payments, often with attached card readers. This option works well for businesses looking for easy-to-implement tech or for those on the move, such as field service providers.

Phone and Interactive Voice Response (IVR) Payments

Payments made over the phone can come in one of two varieties. The traditional approach involves talking to an agent to communicate payment details and share card information. An alternative to these contact center payments is to use IVR to walk customers through the process without needing to talk to an agent. The customer can enter specific numbers or say certain words to make the payment. Both methods are popular with service businesses and recurring payments.

Online Checkout Solutions

Online checkouts can come in many forms for everything from e-commerce and subscription services to rent and utility bills. They might integrate features for managing shopping carts, storing the customer’s information for next time or setting up automatic payments. Supported payment methods might include credit and debit cards and Automated Clearing House (ACH) transactions. ACH is the system used to electronically transfer funds between bank accounts and process electronic checks in the United States.

Contactless Payments

Many cards now have integrated chips with near-field communication (NFC) technology. A compatible POS system allows customers to tap their credit or debit card to make payments. Digital wallets like PayPal and Apple Pay can also use NFC technology to facilitate card payments and bank transfers. You’ll find these wallets integrated with online checkouts and supported by physical POS systems, which can collect payment data wirelessly from a user’s smartphone or watch.

The Benefits of Multiple Payment Channels

In a competitive landscape, offering convenience and choice can make a big difference in where your customers shop. Credit cards and debit cards are by far the most popular payment methods at the point of sale, but analysts expect digital wallets to become much more common. However, payment preferences can vary widely by industry, geography, customer demographics and other characteristics.

By offering a range of options, businesses and their customers can reap several benefits, including:

A Better Customer Experience

With more choices, customers can make payments how they want. These methods often come with unique advantages. Cash doesn’t have any processing requirements or fees, while credit cards can offer rewards and fraud protection. Online or over-the-phone payments are convenient and fast.

With multiple options, customers can pick the right one for their situation. From a business perspective, a better customer experience from payment channels can make it more likely someone will make a purchase with you or reduce the liklihood that their payment will be late.

More Sales Opportunities

Different payment channels can create new sales opportunities. Taking online payments can help a local shop reach customers worldwide, while a POS could help a storefront business take payments from customers who don’t typically carry cash.

Flexible payment options can also help customers make payments on time, allowing businesses to maintain steady cash flow.

Additional Features

Some payment channels support useful features. For example, online checkout systems can help customers set up automatic recurring payments, which you can’t do with cash payments. Online checkouts also offer branding opportunities. You could even create email or SMS text message payment channels by including a link to an online payment platform in emails and SMS text notifications.

Payment Channel Security and Compliance Considerations

Protecting customer information and meeting regulations is crucial for any organization collecting payments. Most payment channels use different technological infrastructures, so you’ll need to pay attention to security and compliance requirements. Make sure your solutions follow best practices for technology standards and protocols, like end-to-end encryption, tokenization and fraud prevention methods.

Depending on your industry and the payment channels you use, look for solutions that meet the Payment Card Industry (PCI) Data Security Standard (DSS) and the Health Insurance Portability and Accountability Act (HIPAA). Working with a member of the Nacha Preferred Partner Program can help ensure security with ACH transactions, too.

How to Set up Multiple Payment Channels

Setting up multiple payment channels might sound complex, but a merchant service provider and a unified payment platform simplify the process. Here at CSG Forte, we use the Dex Payments Platform, a comprehensive solution for payment processing. Dex integrates with various online, in-person and phone payment systems for simplified management and various tools to meet customer needs.

Your team can integrate this highly customizable platform with application programming interfaces (APIs), or you can work with our experienced team to implement channels for your business. We can also help with hardware requirements.

CSG Forte offers full payment processing support for the following channels:

  • Physical POS: We can help build a physical POS solution and supply the tech, including card readers and our Virtual Terminal that turns existing computers into instant workstations. Our POS systems are PCI-validated with point-to-point encryption for extensive security.
  • Phone/IVR: Our phone and IVR services come with your own toll-free number and script-building assistance. Touch-tone and speech-recognition technology can help you build a great customer experience. We also have solutions to streamline and secure payments received through your contact center.
  • Online payments: Our robust online checkout solution is smart, speedy and stocked with options. Accept credit and debit cards and ACH payments, and allow customers to pay through your app or other platforms through robust APIs.

You can accept both credit cards and electronic checks on any of these channels, and each channel comes with our cloud-based Virtual Terminal for transaction management and our powerful payment gateway services. All of the reports funnel into the Virtual Terminal, so you don’t have to worry about piecing things together on your own.

These payment channels don’t necessarily have to correlate only to retail, as well. For example, government agencies could implement online payments to accept taxes on the web and leverage a POS system for in-office payment collection.

Payment Channel Solutions for Your Business

Whatever your industry, diverse payment channels can transform your approach. Expand options for your customers and your business with simplified payment processing. And what’s easier than setting up all of your channels with one company? Get started with CSG Forte today. Give us a call at 866-290-5400 to see what we can do for you.

Working with a Payment Gateway

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A payment gateway is a system that merchants use to accept credit and debit payments. The gateway creates a juncture between two important channels where money travels—one end of the gateway is the merchant, while the consumer’s bank awaits on the other side. The various elements that comprise a gateway are there to ensure the transaction’s security.

At CSG Forte, we develop payment processing platforms that operate as a robust gateway. Our custom payment processing solutions protect businesses across multiple industries while facilitating efficient transactions.

Payment Processors vs. Payment Gateways

A payment gateway exists in front of a payment processor, which is a financial institution or system that accepts the payments customers submit to your business. Your business’s payment processor may be a part of its merchant account, or you can outsource payment processing.

Financial information travels through the payment gateway before it reaches the payment processor. The gateway verifies and encrypts the information before it travels to your merchant account. It will deny fraudulent or invalid payment information. Payment gateways are especially important when processing e-commerce transactions because they offer powerful identification and verification capabilities.

Key Components of a Payment Gateway

A payment gateway should include these functionalities:

  • Payment data authentication: The gateway analyzes incoming data to verify its legitimacy.
  • Encryption: The gateway encrypts the customer’s payment information for processing.
  • Payment processor integration: The gateway allows the seamless transfer of encrypted financial data to the payment processor.
  • Financial settlement: The gateway also delivers encrypted data to the business’s bank for settlement.

Developing a payment gateway is a complex process. It must integrate numerous capabilities and security measures, including the following.

Infrastructure Development

The gateway’s infrastructure lays the groundwork for its immediate functionality and its longevity. The infrastructure begins with a server, which must be capable of withstanding your business’s traffic. Choosing a third-party gateway server can help you meet current needs and scale as traffic changes.

Data Security Measures

Your gateway must contain robust security measures, beginning with encryption protocols. Encryption is the process of converting financial data into a unique code that only devices on your server are authorized to decipher.

Tokenization is another form of data security. Under tokenization, the security system replaces each piece of financial data—such as a credit card number—with a discrete, secure token. Your gateway’s security system will be able to convert each token back into its original format.

Payment gateways also include fraud detection measures to protect your customers and reduce the risk of your business losing money to chargebacks. Your gateway will analyze data and user behavior to detect fraudulent purchases.

All gateway data security measures must meet Payment Card Industry Data Security Standards (PCI DSS) standards.

Integration With a Payment Processor

Your gateway must integrate with your current payment processor—or you must choose a processor compatible with your gateway. After selecting a processor, you can integrate it with your gateway by obtaining the processor’s Application Programming Interface (API) key. Your gateway will also need a separate API key that catalyzes the transfer of customer data.

Compliance and Regulatory Considerations

As you integrate payment gateways, it’s important to remain aware of certain regulatory considerations. Follow global, national and regional laws along with PCI DSS standards.

PCI DSS establishes 12 security standards for merchants to follow when collecting credit card or debit card information. Compliance requires diligence and constant effort, as it is ongoing and varies with your business’s size. PCI DSS compliance is key when reducing risks derived from cyber threats that can impact your company’s financials and reputation.

The following steps are part of PCI DSS requirements:

  1. Use and maintain a firewall
  2. Protect stored cardholder data
  3. Update default passwords and security measures
  4. Use and update antivirus software
  5. Encrypt cardholder data when transmitting it
  6. Keep data on a need-to-use basis
  7. Develop and implement security processes and systems
  8. Routinely check security systems
  9. Create and maintain an information security policy
  10. Implement user IDs for everyone with computer access
  11. Monitor and restrict access to cardholder data
  12. Track who accesses cardholder data and networks

References to PCI DSS are included as a general guide. Complying with PCI DSS would require due diligence and analysis about your scope and specific requirements. Find additional information here.

The Benefits of Using a Payment Gateway

A payment gateway can offer numerous advantages for your business, especially when you partner with an experienced developer. Core advantages include:

  • Improved user experience: Payment gateways provide security alongside seamless payments. Consumers will appreciate the ease of using your online store and peace of mind knowing their data is safe.
  • Bolstered security: A payment gateway offers the strong security that comes with fraud detection and data encryption or tokenization. Your customers’ data will remain secure, and your business will mitigate chargebacks.
  • Expedited payment processing: Payment gateways automate processes for peak efficiency. Customers will enjoy faster checkouts while your business receives its revenue sooner.
  • Enhanced scalability: Implementing a payment gateway will back your business with the security infrastructure it needs to expand into new territories domestically and abroad.

CSG Forte’s Payment Gateway Solution

At CSG Forte, we offer a versatile payment system that facilitates the efficient, secure transfer of financial data from your customer to your merchant account. Our system features a payment gateway with the full range of features your business needs to maximize data security. It offers:

  • Robust security protocols
  • Seamless integration with leading payment processors
  • Compliance assurance
  • User-friendly dashboard and reporting

Why Choose CSG Forte Over Building Your Own Payment Gateway?

Our experience and diligence set us apart as a reliable source of payment gateway solutions. We distinguish ourselves through our:

  • Time and resource efficiency
  • Proven track record and expertise
  • Ongoing support and maintenance
  • Competitive pricing models

At CSG Forte, we have a broad range of experience tailoring payment gateways to businesses’ unique needs. We can develop a gateway that integrates with your processes and facilitates a smooth customer experience. Feel free to contact us online for more on our payment gateway solutions.

Understanding Multichannel Payments

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Today, customers use multiple channels to engage, transact, and pay bills. A McKinsey study found that 82% of Americans use digital payments. These digital payments encompass browser-based or in-app payments, in-store checkouts using mobile devices or QR codes, and person-to-person payments (P2Ps).

Customers appreciate the convenience and ability to make payments in multiple ways when transacting. They also expect seamless, personalized experiences from your business. Providing multichannel payment options is one way you can meet their needs.

What Are Multichannel Payments?

Multichannel payment processing refers to the ability to accept customer payments across various channels. It offers your customers the freedom and flexibility to make payments using their preferred methods and platforms, whether that means paying in-store, on a mobile app, over the phone, or online. Multichannel payments provide your customers with a consistent, streamlined experience while making things easy for you to manage with one synergized vendor and solution.

Efficient multichannel payment processing also makes it easy to track customer behavior, preferences, and purchase history across various channels. With that info, you can deliver better customer service, marketing, and overall experiences.

How Do Multichannel Payments Work?

Multichannel payments offer a convenient experience no matter the path your customers choose. A customer may use your services or purchase your products and want to transact in a unique way. With a multichannel payment solution, you can make the switch between channels seamless.

Your customers can pay on their preferred channel—email, text, interactive voice response (IVR) or via a live agent—and switch at any point. You can simplify the payment process for your customers and merchants while keeping interactions personalized.

Multichannel payments link all your touchpoints through an integrated platform, making payments highly personalized and focused on your customer’s preferences.

What Are Multichannel Payment Processing Channels?

Typical multichannel payment processing channels include phone, in-person, email, and text.

1. Phone Payments

Pay-by-phone IVR solutions enable you to accept payments 24/7. Leverage innovative speech-recognition and touch-tone technology to empower customers to make rapid payments using self-service capabilities.

Your customers can connect to your system at any time from any phone, following prompts to complete transactions. IVR payment methods provide frictionless payments and shorten your collection time. The self-service functionality will free your staff to focus on more urgent matters.

2. In-Person Payments

Speed up in-person payment processing with advanced contactless payment technology that makes point-of-sale (POS) purchases a breeze. Digital bill payment methods will continue to grow, but in-person transactions are still the preferred pay point for many consumers.

A contactless system enhances the offline payment experience, helping customers pay bills securely and efficiently while on the go. You can opt to integrate award-winning POS solutions with your current system or use the enterprise-grade POS terminals as standalone devices.

3. Email Payments

Leverage email payment link technology to streamline billing for your customers. To accept payments through this channel, you need a trusted payment services provider (PSP) to set up a secure system that enables you to send customers a safe email link. This email link will take customers to an encrypted hosted page or NanoSite where they can make payments online. The link will also work when sent via text or through social media.

You can accept email payments even if your business doesn’t have a website. Email payment processing is versatile and quick. It removes barriers to sale and reduces late payments by supporting them via multiple methods, including:

  • E-wallets
  • Credit cards
  • Debit cards

4. Text Payments

Pay-by-text capabilities enable customers to make payments via SMS and MMS. When a customer initiates a bill payment, they’ll receive a message with a secure link. This encrypted link will take the customer to a secure gateway or NanoSite to complete the transaction, offering a seamless payment solution.

Text payments are opt-in services that help customers conveniently pay when you message them, reducing your past-due payments.

What Is a Multichannel Payment Platform?

A multichannel payment platform helps you manage multiple types of payments in one place. CSG Forte Engage provides secure, frictionless payment methods, allowing your customers to pay using their preferred channel anytime. This integrated platform offers:

  • Multichannel payments: Give your customers the power to pay at multiple touchpoints and via email, text, IVR, or live agents—with the option to switch throughout the payment process seamlessly. Enable customers to select payment options like autopay for recurring fees or installment payments.
  • Secure payment options: The live agent assist feature allows your contact center staff to create online invoices and send them directly to customers. With cutting-edge NanoSite technology, clients can securely complete transactions without sharing banking details or credit card information across multiple channels. This approach reduces the risk of sensitive information leaking.
  • Customized payment journeys: Rapidly deploy personalized payment journeys for your customers. Branded payment journeys can be activated for one-time, recurring, or future-date payments. You can send invoices with payment prompts, confirmations, or late payment notifications to a customer’s channel of choice.

The Benefits of Our Multichannel Payment Platform

Innovative multichannel payments offer your business several advantages. When you leverage our platform for multichannel payments, you can benefit from:

  • Fast implementation: Advanced solutions enable low-to-no coding, meaning integration takes days, not months.
  • Convenient automation: Multichannel payments reduce repetitive tasks through automation while still providing highly personalized customer experiences.
  • Secure transactions: Custom payment pages or NanoSites allow customers to transact with your business quickly and securely, reducing late payments.
  • High adoption rates: Multichannel payments increase self-service capabilities and encourage the adoption of digital payments, minimizing the costs associated with some offline payments.
  • Seamless testing: Your business can leverage multichannel payment capabilities to split-test elements of the payment journey. See what best works for your customers and use it to enhance their experience.

Partner With CSG Forte for Secure Multichannel Payments

At CSG Forte, we leverage decades of experience to help your business scale payments and grow with smart, unified payment solutions. Our payment platform is designed to meet your ever-changing needs and customer preferences.

Want to learn more about how we can help you simplify and scale your multichannel payment capabilities? Get started by connecting with our team online.