Category: Industry

Healthcare Finance Leaders’ Guide to Straight Through Processing

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Key Takeaways

  • Straight Through Processing (STP) automates virtual card payments from “approved” to “deposited + reconciled,” typically in about one day instead of 60–90 days.
  • STP is purpose‑built for healthcare, handling both insurer (B2B) and patient (C2B via payer portals) flows while feeding clean remittance data into the platform and your revenue tools.
  • The solution is designed for HIPAA, PCI DSS and HITRUST‑aligned environments, and runs behind the scenes without forcing disruptive changes to your EHR or practice management stack.

Healthcare finance leaders sit at a difficult intersection. You’re responsible for keeping operating margins in the black while also staying true to the organization’s clinical and community mission—and increasingly, those goals are in tension.

Margins are improving in some markets, but they remain thin and uneven. At the same time, more revenue is tied to patient responsibility, where collection rates continue to fall. The bottom line: every dollar that sits in flight instead of in your operating account adds volatility you can’t afford.

This is exactly where Straight Through Processing (STP) can change the equation—by compressing the time from insurer approval to provider deposit of virtual credit card payments from up to 60 days to roughly one day, and by stripping out the manual work and risk that come with mailed virtual cards.

 

The new realities behind your payer mix

On paper, payer mix still looks familiar: Medicare, Medicaid, commercial and self-pay summarized neatly on the income statement. But the cash story behind that mix has shifted.

High-deductible plans and rising out-of-pocket costs mean more of each encounter’s total charge now falls to the patient after insurance, not just to the insurer. Those patient-owed balances are far harder to predict and collect than contracted insurer payments, and many organizations are recovering only a fraction of what’s billed on the patient side. The result:

  • Less predictable cash flow, as a larger share of revenue depends on patient behavior instead of institutional payers.
  • Higher write-offs, with bad debt and charity care climbing as affordability challenges grow.
  • Greater sensitivity to delays on the “reliable” side of the mix—your insurer reimbursements must do more work to stabilize cash.

Against that backdrop, it’s no longer enough to optimize only patient collections. To protect margin and mission, healthcare finance, IT and operations leaders need to accelerate every predictable dollar.

Where should you start? The lowest-hanging fruit is payer reimbursements.

 

How virtual credit card payment automation accelerates cash flow

For many organizations, insurer reimbursements still arrive the hard way: Payers issue virtual cards for approved claims and send those card details through the mail, leaving providers to finish the last mile manually.

That “status quo” workflow looks like this:

  • Letters arrive at the practice or lockbox.
  • Staff open and sort mail, retrieve virtual card details and key payments into a terminal or practice management system.
  • Teams reconcile deposits and remittance data days or weeks later, often by hand and often across multiple systems.

On paper, it’s a digital payment. In reality, it’s a paper-era process with familiar consequences: extra administrative work, slower access to cash, more opportunities for fraud or loss and a wider PCI DSS footprint as staff handle card numbers directly.

Those pain points set the stage for a different approach: automating the entire path from virtual card creation to deposit and reconciliation, without changing how payers adjudicate claims.

 

What is Straight Through Processing?

STP is a payment automation process offered that allows healthcare providers to receive payments from insurance companies and from patients (via their payers) in about one day, directly into their bank accounts.

Instead of sending virtual card details through the mail and relying on manual posting, STP:

  • Keeps the virtual card model at the payer level: The insurer continues to generate a virtual card (VCC) for each approved reimbursement or patient balance, just as they do today.
  • Routes those virtual cards electronically to CSG Forte: The insurer sends the VCC details and remittance data to CSG Forte over secure, encrypted channels.
  • Automates virtual credit card payment processing and deposit: CSG Forte processes the virtual card and deposits funds directly into the provider’s bank account—typically the day after the claim is approved, instead of weeks or months later.
  • Delivers complete reconciliation: Payments and remittance information are surfaced in CSG Forte’s platform so your finance and operations teams can track, match and report on every transaction efficiently.

From your team’s perspective, reimbursements simply show up as electronic deposits with clean remittance data, without anyone handling plastic, paper or card numbers.

 

How STP fits into your insurance and patient payment flows

For healthcare administrators, IT and revenue cycle leaders, it helps to see how STP aligns with existing claim and billing processes.

At a high level, two flows benefit: B2B (payer → provider) and C2B (patient → provider via payer).

1. Insurance (B2B) payments

  • A patient receives care; the provider submits a claim.
  • The payer adjudicates and approves a portion—for example, $110 on a $200 visit.
  • The insurer generates a virtual card for the approved amount and routes it electronically to CSG Forte.
  • CSG Forte processes the VCC and deposits the $110 directly into the provider’s bank account, usually within one business day of approval.
  • CSG Forte’s web platform presents the payment and associated remittance data so your team can post, reconcile and report without rekeying or guesswork.

2. Patient (C2B) payments via payer portals

  • After insurance, the patient still owes, say, $50 (copays, deductibles, coinsurance).
  • The patient pays their balance through a payer-linked portal using an HSA/FSA or other card.
  • That payment hits the insurer’s engine, which again creates a virtual card for the $50 balance and sends it to CSG Forte.
  • CSG Forte processes the virtual credit card payment and deposits the $50 into the same provider account, with remittance data aligned to the patient and claim.

By centralizing both flows through STP, you:

  • Reduce manual touch points.
  • Gain a more predictable view of insurer and patient cash.
  • Create a cleaner foundation for downstream patient billing and collections.

 

From mailed cards to automated deposits: the STP advantage

Replacing mailed virtual cards with straight-through electronic deposits unlocks a set of concrete advantages across finance, operations and compliance.

1. Faster access to cash: Moving from up to 60 days of mail-based reimbursement to roughly one day after approval has a direct impact on days in A/R and days cash on hand. That acceleration can:

  • Smooth intramonth liquidity swings.
  • Reduce reliance on short-term borrowing or internal juggling.
  • Support more proactive decisions around staffing, capex and growth.

2. Lower administrative burden: With STP, your teams no longer need to open envelopes, key card numbers into terminals or manually match deposits to remittances. Our platform consolidates payment and remittance data so staff can focus on exception handling instead of transactional data entry. In an environment where revenue cycle and billing roles are hard to staff and retain, simplicity significantly increases efficiency for lean teams.

3. Reduced fraud and loss exposure: Automated virtual card processing significantly reduces the surface area for:

  • Intercepted mail and stolen card details.
  • Card testing fraud on exposed numbers.
  • Misapplied or lost payments that never make it to your deposit account.

By keeping sensitive card data within encrypted, controlled systems and eliminating physical mail, STP helps lower your fraud and loss risk while improving traceability.

4. Stronger security and compliance posture: CSG Forte’s healthcare payments capabilities, including STP, are designed to support high standards of HIPAA, PCI DSS and HITRUST-aligned security controls. Because your staff are no longer handling card numbers directly, your PCI scope is narrower and easier to manage and your audit trail for payer remittances becomes more robust.

 

Ensuring compliance and security in payment automation

For healthcare administrators and operations leaders, the value of STP isn’t just “faster payments.” It’s a set of strategic improvements in:

Finance and revenue cycles

  • Cash flow acceleration: Shorter reimbursement cycles stabilize liquidity and free working capital for strategic initiatives, not just firefighting.
  • More predictable revenue: With insurer and payer portal payments flowing directly to your accounts, forecasting becomes more reliable.
  • Cleaner close: Automated posting and reconciliation reduce end-of-month surprises and manual journal entries.

IT and data teams

  • Fewer brittle customizations: STP runs behind the scenes handling the virtual card processing; your core EHR and practice management systems don’t need invasive changes.
  • Better data quality: Consistent remittance data that is aligned with deposits and supports more accurate analytics and reporting across payer, specialty and facility.
  • Security by design: Centralizing virtual credit card payment processing with a healthcare-ready payments partner helps you align with existing security and risk frameworks rather than creating new exceptions.

Operations and practice leadership

  • Staff efficiency: Each remittance that posts automatically is one fewer piece of paper to touch or spreadsheet to reconcile.
  • Less burnout from repetitive work: Reducing tedious, error-prone tasks makes it easier to retain experienced revenue cycle and billing staff in a tight labor market.
  • Alignment with long-term automation strategy: Industry research continues to highlight significant savings potential from automating administrative processes across healthcare finance. STP supports your broader automation strategy.

 

Moving from 60 days to 1 day with CSG Forte

Healthcare providers can’t afford to leave cash flow to chance—not when margins are thin, patient affordability is under pressure and labor markets are tight. Optimizing patient collections will always matter, but stabilizing the predictable, contracted side of revenue is just as critical.

CSG Forte’s Straight Through Processing gives healthcare finance, IT and operations leaders a practical lever to:

  • Replace mailed virtual cards with automated deposits.
  • Shorten reimbursement cycles from months to roughly a day.
  • Reduce fraud and compliance risk tied to manual card handling.
  • Free staff from low-value, high-volume tasks.

All while working within the payer and portal ecosystems you already use. STP does not require changes to payer adjudication or your core EHR/practice management systems.

Ready to learn more? Connect with experts from our team to see how STP can fit into your healthcare payment workflows and revenue cycle strategy.

 

Frequently Asked Questions

FAQ 1: What is virtual credit card payment automation in healthcare?

Virtual credit card (VCC) payment automation replaces mailed virtual card letters and manual keying with a fully electronic flow from payer to provider bank account.

In the STP model, payers still generate a virtual card for each approved claim or patient balance, but they send the card credentials and remittance data directly to CSG Forte over secure channels instead of sending paper to your office.

CSG Forte then processes those cards automatically, deposits funds to your account (typically the day after approval) and surfaces the associated remittance data so your team can post and reconcile without touching envelopes or terminals.

FAQ 2: How does CSG Forte’s STP differ from ACH or check‑based payments?

Check-based and many “virtual card by mail” workflows rely on postal delivery and manual keying, which can stretch the window from approval to deposit to 30–90 days and consume significant staff time.

ACH EFT can eliminate paper but often still requires a separate process to match deposits with remittance files and handle exceptions. STP focuses specifically on virtual card reimbursements: it automates the last mile from “virtual card issued” to “funds in your bank with matched remittance,” so you get the speed and card-rail protections of VCCs with far less manual work.

Many groups pursue ACH and STP together—using ACH where they can, and applying STP to the substantial volume of virtual card payments that won’t go away in the near term.

FAQ 3: Is STP available for all payment types and payers?

Today’s STP offering is focused on automating virtual card reimbursements, covering both insurer payments and patient payments made through payer-linked portals (e.g., HSA/FSA spend).

Within that universe, you can choose whether to enroll only insurer (B2B), only patient (C2B) or both flows, and you can route them to the appropriate bank accounts.

STP does not currently turn every payer or every payment method into a straight‑through flow, but it gives you a high‑impact way to automate a large and growing slice of card-based reimbursements without waiting for every payer to move to ACH.

FAQ 4: What compliance and security standards does STP support?

STP is designed to operate within HIPAA, PCI DSS and HITRUST‑aligned security frameworks, reflecting the dual sensitivity of payment data and protected health information (PHI).

Card data and remittance information move through encrypted, access‑controlled systems; staff no longer handle card numbers directly, which helps narrow your PCI scope and strengthens audit trails for payer remittances.

On top of that, our platform provides role‑based access, MFA, IP whitelisting and detailed logging so finance, IT and compliance teams can enforce least‑privilege access and reconstruct who did what, when and why.

FAQ 5: Does STP require changes to my EHR, practice management or RCM systems?

STP is intentionally designed to run “behind the scenes” so you don’t have to rip and replace core systems to benefit from automation.

Virtual card processing and data normalization happen on the CSG Forte side; you can start by centralizing acceptance, settlement and reconciliation and then deepen integrations into your EHR, PM or RCM tools over time.

Many organizations use STP to stabilize cash and clean up remittance data first, then work with their internal teams and vendors to map that cleaner data into existing posting workflows rather than rebuilding those workflows from scratch.

Payment Channels Explained: Offer More Ways to Pay Without Adding Complexity

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Payments aren’t getting simpler—they’re getting more varied. Your customers might want to pay online, over the phone, in person or through a link in an invoice reminder. And while offering more ways to pay can increase completed payments and reduce delays, it can also create new headaches if each option lives in its own silo.

That’s why it helps to think in terms of payment channels, not just payment methods. A channel is the full path a payment takes—from the customer’s experience to the technology that securely authorizes the transaction and moves funds. Before you add new ways to pay, you need to understand which channels fit your business, how they differ and how to implement them in your organization in a way that stays cohesive, secure and manageable.

 

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 automated clearing house (ACH), 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 point-of-sale (POS) payment system 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.

 

How offering multiple payment channels benefits your business

Person paying with a phone on a point-of-sale device. Caption: In a competitive landscape, offering convenience and choice can make a big difference in where your customers shop.

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:

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 likelihood 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.

 

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.

 

CSG Forte’s payment channel solutions for your business

Smiling man on a laptop. Caption: 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.

An Insurance Leader’s Guide to Reducing Payment Declines

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Key Takeaways

  • Insurance payment declines are a customer experience, retention and compliance problem—not just a billing issue—because failed premiums can quickly lead to policy lapses and involuntary churn.
  • The most effective strategies combine prevention (reminders, ACH, account verification, Account Updater) with smart, mostly invisible recovery tactics and empathetic communication when policyholders must get involved.
  • Modern platforms paired with powerful tools help insurers reduce declines, cut manual work and protect premium revenue across the entire policyholder journey.

Payment failures are problematic for all businesses, but the consequences are particularly harmful for insurance companies and policyholders. Insurance payment declines can cause policy cancellations that decrease revenue and leave customers unprotected from catastrophic events.

Even if the policy is later reinstated, policyholders fed up with payment friction may switch insurers, reducing customer lifetime value. To protect and retain clients and revenue, insurers need effective strategies—and a modern online payments platform—to reduce insurance premium payment declines.

 

Why insurance payment declines hurt more than you think

When insurance premium payments fail, they set off a chain reaction of customer frustration, operational headaches and financial losses that erode an insurer’s profitability.

Payment friction damages customer experience: In an industry where “peace of mind” is the core product, online payment friction is particularly damaging because it forces the policyholder to do the heavy lifting during a high-stress moment. When communication regarding payment declines is vague (“payment error”), impersonal and arrives a week later by snail mail, customers must scramble to identify and fix the problem before the grace period ends. Paying bills is often the only contact policyholders have with the insurer, so a stressful payment experience may be the deciding factor about whether to switch providers.

Lapsed coverage leads to churn and revenue loss: If an insurance premium payment is declined and the customer fails to remedy the situation within the grace period, the policy is canceled and insurance coverage terminates. This involuntary churn results in a complete loss of future revenue from that customer, decreasing investment income from float. Even if the customer’s policy is reinstated, the frustration and hassles may send the policyholder shopping for another carrier (i.e., voluntary churn).

Payment failures increase operational expenses: Tending to insurance payment declines requires costly internal processes:

  • Policyholder communications (i.e., dunning management)
  • Payment retries
  • Reinstatement

Compliance risk: In many states, property and casualty insurers have specific regulatory requirements for notifying customers before policy cancellation. Failed payments complicate this process, increasing the risk of compliance errors and potential regulatory penalties.

 

Top causes of premium payment failures

Payment declines may be due to policyholder issues, technical/system failures, or fraud/risk flags:

  • Insufficient funds: The policyholder’s bank account doesn’t have enough money to cover the premium, or the premium exceeds the available credit card limit.
  • Expired or cancelled card: When the card used for recurring payments is no longer valid, the premium payment will fail. The typical life span of a credit card is about three years before it expires or becomes lost or stolen.
  • Invalid payment data (technical error): The payment information (e.g., bank account or routing number, credit card number, CVV or expiration date) was entered incorrectly by the customer or contains a technical error that prevents the payment gateway from processing it.
  • Technical glitches: Issues arise with the payment gateway, processor or card network.
  • Fraud detection/false declines: The issuing bank’s fraud prevention system flags a legitimate transaction as suspicious.

 

Best practices to reduce declines and retain policyholders

The best way to retain clients is to deliver a more convenient online payment experience. Follow these best practices to improve CX and prevent payment declines:

Send automated payment reminders well before the premium due date. If the reminder arrives the day before payment is due, customers may not have enough time to be sure there’s enough money in their account to cover the premium.

Encourage policyholders to pay via automated clearing house (ACH) instead of credit card. Because bank accounts are typically held for 14 years (meaning account numbers don’t change as often as credit card numbers), ACH transactions have lower decline rates.

Offer flexible payment plans and due dates. Make insurance premiums more budget-friendly by allowing policyholders to spread out payments (e.g., monthly, quarterly or biannual payments). Offer paycheck aligned plans that match customers’ pay dates.

Use a card account updater service. An account updater service automatically updates expired, replaced or reissued card credentials with the card network, eliminating the need for customers to manually refresh their payment details.

Implement an account verification solution. Verify the bank account and routing number for ACH transactions to reduce manual errors at the point of capture and reduce bad checks prior to processing.

Take advantage of payment orchestration. Use a system that intelligently routes payment attempts through different processors or networks if an initial attempt fails, sometimes leading to a successful transaction.

 

How to recover failed payments without damaging relationships

Payment declines may still occur, despite your best efforts to prevent them. When they do, you need to tread lightly to resolve the problem without pushing customers away.

Start with “invisible” recovery tactics. The best way to preserve a relationship is to fix the payment issue before the customer even realizes there is a problem.

Use a payment recovery service. When insurance premium payment fails due to insufficient funds, a payment recovery service automates and optimizes the process of reattempting and collecting payment, without the customer’s involvement.

Apply intelligent retry logic. The best recovery systems employ a machine-learning-driven process that determines the optimal moment to re-attempt a declined transaction. For example, debit card retries may be most successful at 12:01 AM, when banks refresh daily balances. Or the system may use payday logic, retrying payments on the 1st or 15th of the month.

  • Remove friction. If you must involve policyholders in recovery efforts, communicate promptly, transparently and empathetically—and make it easy for the customer to fix the payment problem.
  • Issue real-time payment decline alerts. Instantly notify customers via their preferred channel (phone, text or email) when a payment fails, explaining the reason (e.g., “Card declined due to insufficient funds”). Keep the tone friendly and supportive.
  • Include a one-click payment link. Make it simple for policyholders to update their payment method or make a one-time payment, without having to log in to the portal.
  • Allow partial premium payments to prevent policy lapses. Personalized messages and solutions are more effective than generic outreach.

 

CSG Forte: the best policy for insurance payment success

A modern online payment processing platform for insurers simplifies payments and revenue management. CSG Forte is your one-stop solution for accepting payments in person, by phone or online. Payment validation, card updater and NSF Check Recovery Services reduce insurance payment declines, boosting retention and revenue.

CSG Xponent, our customer journey management solution, improves policyholder CX by sending timely, personalized messages—such as payment reminders and claims status updates—via each customer’s preferred channel.

Ready to simplify payments? Let’s chat—reach out to our Forte team today and discover how we can help your business boost retention and revenue.

 

Frequently Asked Questions

1. What are the most common reasons insurance premium payments fail?

The main drivers are:

  • Insufficient funds or credit limit on the policyholder’s account when the premium is due.
  • Expired, replaced or cancelled cards used for recurring payments.
  • Incorrect or incomplete payment details, such as mistyped account or routing numbers, card number, CVV or expiration date.
  • Technical issues at the gateway, processor or network level that temporarily prevent authorization.
  • Fraud/risk rules and false positives, where the issuer flags a legitimate transaction as suspicious and declines it.

2. How does Account Updater reduce card declines for insurers?

Account Updater automatically refreshes stored card details for participating Visa, Mastercard and Discover cards when those cards are reissued, updated or closed. Instead of a recurring premium failing because the old card on file has expired or been replaced, CSG Forte:

  • receives updated card data from the card networks,
  • matches it to tokenized payment methods on file, and
  • updates the token with the new account number or expiration date.

This reduces declines due to outdated card credentials and lets many recurring premiums continue without the policyholder needing to call in or log into a portal to update their card.

3. Can CSG Forte BillPay integrate with my existing policy admin system?

Yes. CSG Forte BillPay is designed to sit alongside your existing policy admin, billing and claims platforms, not replace them. Insurers can:

  • use REST APIs and/or file-based integrations to exchange data,
  • synchronize balances, payment status and settlement details, and
  • feed reconciliation files and reports into downstream finance and policy systems.

The result is a more modern payment experience without a rip-and-replace of your core insurance systems.

4. What payment methods does CSG Forte support for insurance premiums?

CSG Forte supports a broad mix of payment methods insurers typically need, including:

  • credit and debit cards,
  • ACH/eCheck from bank accounts, and
  • leading digital wallets such as Apple Pay, Google Pay, PayPal and Venmo.

These can be offered across channels like web and mobile portals, IVR and call center payments, text-to-pay and in-person or agent-assisted payments, so policyholders can pay in the way that’s most convenient to them.

5. How can insurers track and improve payment recovery rates?

To manage and improve recovery, insurers should:

  • Track decline and failure rates by channel and payment method (card vs. ACH).
  • Measure recovery rate by value (how much failed premium revenue is successfully collected) and write-off percentage (what’s never recovered).
  • Monitor time to recovery (TTR)—the days from first decline to successful collection.
  • Compare automatic vs. manual recovery, aiming to shift more recovery to automated tools (Account Updater, intelligent retries, recovery services) and reduce labor-intensive outreach.

Improvement typically comes from:

  • strengthening prevention (payment reminders, ACH incentives, account verification, Account Updater),
  • implementing smart retry and recovery logic, and
  • using analytics to refine dunning strategies and channel mix over time.

Modernize the Government Payment Experience for Residents by Adding Online Payments

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Key Takeaways

  • Modern government payment experience drives on-time revenue. When agencies integrate web, mobile, IVR and text-to-pay into a single platform, residents can move from reminder to payment in a few clicks—reducing delinquencies and call volume.
  • Secure, user-friendly portals build public trust. A modern online bill pay experience that’s mobile-first, PCI-compliant and easy to navigate makes residents more likely to pay your bill before less convenient ones.
  • Multi-channel reminders boost engagement and collections. Letting residents choose email, text or automated voice reminders—and pairing those with personalized payment links—helps governments reach more people, increase completion rates and lower staff workload.

Providing a smooth payment experience is key if you want residents to pay taxes, utilities, fees and fines on time. But meeting public expectations is easier said than done.

People increasingly expect payments to be digital, fast and easy—70% of U.S. consumers prefer to receive payments digitally, and 73% prefer to shop and pay using digital methods, according to recent research. At the same time, security and convenience are now the top decision factors in how people choose to pay their bills.

In 2023, more than nine in 10 consumers used at least one form of digital payment over the course of the year. And even though U.S. households received about 9.1 billion bills by mail in 2023, 80% of those bills were ultimately paid electronically. What’s more, for the first time, more than half of all household bill payments were made online. The good news: a few practical changes can dramatically improve your residents’ experience and help your agency collect revenue more reliably. Follow these four best practices to deliver a secure, convenient digital payment experience that reduces friction and supports on-time payments.

 

4 best practices to improve the government payment experience

Modernizing the government payment experience doesn’t have to be overwhelming. By focusing on practical, resident-centered improvements, agencies can make paying bills simpler and more secure—encouraging on-time payments and reducing frustration for both residents and staff. Here are four actionable strategies to help your organization deliver a modern digital payment journey.

1. Seamlessly integrate your payment channels

  • Aim for a flow where a resident gets a text or email with a secure link, taps once and lands on a mobile-friendly page where they can pay in just a few clicks.
  • When you integrate web, mobile, IVR, text-to-pay and agent-assisted payments into a single platform, staff see one source of truth, residents move directly from reminder to payment, and your agency fields fewer “how do I pay this?” calls.

The payoff: more completed payments, fewer delinquencies and less time spent chasing balances.

2. Treat the payment portal like a critical service touchpoint

For residents, your payment portal is one of the most visible ways they experience their city, county or state.

  • Security and convenience are two top factors consumers often cite when choosing how to pay their bills.
  • If your portal is slow, cluttered or not optimized for mobile, many residents will delay paying or prioritize “easier” bills first.
  • Accessibility issues—language, readability, mobile responsiveness—can hit lower-income and older residents hardest.

A modern, mobile-friendly portal with clear steps, plain language and saved payment methods makes it more likely your bill moves to the top of the stack instead of the bottom.

3. Earn public trust with a secure payment platform

Agencies handle sensitive resident data every day. If people don’t trust your payment system, they’ll avoid it and fall back on more manual, expensive channels.

  • Card-not-present fraud (online and phone payments) now accounts for roughly 71% of all card fraud losses, or about $10 billion in 2024, and is expected to remain about three-quarters of total card-payment fraud.
  • Security has become the single most important feature for many bill payers.

Look for a platform that:

  • Uses IVR and self-service to protect card data.
    • Inbound IVR: residents enter card or bank details via keypad instead of reading them aloud.
    • Outbound IVR: residents receive an automated balance reminder and can pay securely in the same call.
  • Keeps agent-assisted payments secure by letting staff send one-time, secure payment links via text or email so residents enter card data directly—staff never see or handle it.
  • Leans on built-in PCI compliance and tokenization, so sensitive data is secured by a specialist provider, your compliance scope shrinks and staff can focus on serving residents, not managing security configs.

4. Reach residents on the channels they actually use

If you’re only sending reminders through a channel residents rarely check, you’re increasing the odds of late payments.

  • Text messages have open rates around 90–99%, compared to roughly 20–33% for email.
  • About 79% of consumers are opted in to receive texts from businesses, signaling a strong preference for text-based communication.

For governments, that means:

  • Residents are far more likely to see a text about a tax deadline, court date or utility bill than a single email or mailed notice.
  • Multi-channel outreach—text, email and automated voice—dramatically improves the chances reminders arrive before the due date.
  • Let residents choose their preferred channel and use it consistently for reminders, confirmations and past-due notices.

 

How CSG Forte helps public agencies modernize the payment experience

CSG Forte’s payment platform is designed to meet residents where they are—whether they’re paying property taxes, utility bills, permitting fees or court fines.
With one secure, low-code platform, your agency can:

  • Enable any-time, any-way payments: online, mobile, IVR, text-to-pay and agent-assisted.
  • Manage invoice creation, payment processing and notifications across channels from a single interface.
  • Reduce your exposure to sensitive card data with PCI-compliant processing and tokenization.

Give residents a consistent, user-friendly experience whether they’re on a phone, laptop or at the counter.

You can invite residents to opt in to reminders, confirmations and late notices on their preferred channels, then use calendar-aware workflows to send personalized payment links when you know they’re most likely to see—and act on—them.

If your city, county or state agency is looking to simplify bill payments, improve the resident experience, reduce fraud exposure and encourage on-time payments, CSG Forte can help. Check out our eBook focused on improving government payment services.

Contact us to learn how CSG Forte can support your team and your community.

Defending Payments in an AI Fraud Era

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Key Takeaways:

  • Payment fraud is accelerating and evolving. Losses are projected to reach $91 billion in 2028, and nearly 80% of organizations reported attacks or attempts in 2024. Fraud is no longer occasional; it’s global, complex and relentless.
  • AI is a double-edged sword. Businesses use AI to fight fraud, but bad actors also leverage AI to automate fraud, create synthetic identities and launch sophisticated phishing campaigns that evade traditional detection.
  • Modern fraud protection requires agility and intelligence. Businesses need solutions that deploy quickly, adapt to unique transaction patterns and provide full visibility with customizable controls—backed by expert support to stay ahead of evolving threats.

The payments industry is under siege. Fraud is no longer an occasional nuisance. It’s accelerating at unprecedented speeds, becoming increasingly sophisticated and harder to detect. For businesses that accept online payments, it often feels like playing a relentless game of whack-a-mole. As soon they address one threat, another emerges.

 

The cost of payment fraud is growing

Scams, account takeovers and fake identities drive most payment fraud schemes. Recent industry research underscores the scale of the problem:

  • $362 billion: Projected global losses from online payment fraud between 2023–2028, with $91 billion expected in 2028 alone.
  • 79% of organizations reported being victims of payment fraud attacks or attempts in 2024.
  • $534 billion: Average amount forfeited in 2024 among business leaders surveyed. This is equal to 7.7% of annual revenue.

The bottom line: Fraud is not just costly, it is evolving, complex and global in scope.

 

Even fraudsters are using AI

Businesses are increasingly seeking partners who are leveraging artificial intelligence (AI) in their fraud protection tools.

Unfortunately, bad actors are also tapping AI to steal billions of dollars. Fraudsters employ machine learning algorithms to identify patterns in transaction data, initiate account takeovers and automate fraud schemes. They can also generate synthetic identities that are difficult to detect, even with newer fraud protection tools.

AI tools also enable fraudsters to launch sophisticated phishing campaigns that optimize the timing and volume of fraudulent transactions. These tools even evade traditional rule-based detection systems that cannot effectively respond to novel attack patterns. This means that fraud is no longer just opportunistic; it’s intelligent. That’s why having proper security mechanisms in place is paramount for businesses. Fraudsters are calculated and adaptive, and they are scaling at the same speed as legitimate digital payments.

 

Prominent payment fraud types

The types of payment fraud emerging today are highly diverse, targeting businesses of every size and across all industries. Businesses, merchants and independent software vendors must understand common attack methods fraudsters use. This is a key first step to integrating fraud protection capabilities.

Common threats

  • Excessive payment fraud/refund fraud
    • What it is: Customers deliberately or accidentally submit payments exceeding owed amounts, later requesting refunds.
    • Why it matters: It creates significant financial losses through credit card and Automated Clearing House (ACH) chargebacks. It also damages processors’ and merchant networks’ credibility.
  • Merchant bust‑out fraud
    • What it is: Fraudulent merchants or impersonators rapidly process a high volume of irregular transactions before disappearing.
    • Why it matters: Merchants risk chargebacks, inflated fees and refund abuse. This disrupts cash flow and causes financial distress. It is especially problematic when high-dollar amounts funnel to unauthorized accounts.
  • Merchant credit events/defaults
    • What it is: Intended or unintended payment defaults by a merchant. Causes include disputes, chargebacks, returns, mismanaged cash flow and weak financial positioning.
    • Why it matters: Defaults lead to financial instability, credit events, missed payments and bankruptcies.
  • Customer payment fraud
    • What it is: Fraudulent merchants or impersonators rapidly process a high volume of irregular transactions before disappearing.
    • Why it matters: Merchants risk chargebacks, inflated fees and refund abuse. This disrupts cash flow and causes financial distress. It is especially problematic when high-dollar amounts funnel to unauthorized accounts.

More advanced fraud

  • Account takeover (ATO) fraud
    • What it is: Fraudsters steal credentials or run phishing scams to access merchant or customer accounts.
    • Why it matters: Causes direct financial theft, reputational damage, financial losses, potential bankruptcies and regulatory exposure.
  • Anti-money laundering (AML) violations
    • What it is: Illegally obtained funds move through legitimate payment channels to obscure their origins.
    • Why it matters: Brings serious compliance and regulatory consequences, including mandatory reporting, penalties, closures and reputational damage.
  • Card testing fraud
    • What it is: Fraudsters test stolen or generated card numbers with small transactions to identify valid working accounts.
    • Why it matters: It increases payment declines and makes processing more expensive. It also opens doors to bigger attacks that can lead to serious financial problems.

 

Where today’s solutions fall short

Many businesses rely on established fraud prevention tools. They often fall behind increasingly sophisticated fraud attacks. The biggest gaps in traditional systems include:

  • Slow response times: Older systems cannot keep up with fast-growing payment volumes. Without real-time detection, threats slip through and cause losses.
  • Poor customer experience: Outdated models often flag legitimate transactions as fraud. This leads to delays, declined payments and frustrated customers who expect smooth, secure payments.
  • Generic tools: One-size-fits-all solutions do not match the unique risks of different industries. Without customizable rules and thresholds, businesses either block good payments or miss high-risk ones.
  • Rigid systems and long deployments: Many “customizable” tools take months to implement, cost a lot to maintain and require internal teams for every update. Adapting to new fraud patterns becomes slow and expensive.
  • Costly in-house builds: Some businesses try building their own solution. They quickly discover that it demands constant investment, specialized skills and resources that pull focus from core operations.
  • Fragmented protection: Digital payments span multiple channels and regions, but many tools only cover part of the fraud landscape. Disconnected systems create blind spots, delays and inconsistent results.

 

What businesses need in modern fraud protection solutions

Risk management has transformed from a back-office function to strategic necessity and businesses need better support. Fortunately, new providers are challenging the status quo. They are taking a different technological and process approach to fight payment fraud. Key capabilities to look for in a fraud tech partner include:

  • Ever-learning technology: AI-powered platforms that continuously adapt to emerging risks. These platforms learn from new, diverse data without requiring heavy technical overhauls. This significantly reduces false positives, improving customer experience and driving stronger return on investment for businesses.
  • Implementation efficiency: In fraud prevention, speed is critical. Fraudsters exploit any delay. It is important to set up quickly with little effort required from the client. After implementation, ongoing support and expert guidance help businesses stay ahead of fraud.
  • Nimble customization: Customizable systems that adapt to unique transaction patterns and industry needs give businesses detailed, optimized protection.
  • Comprehensive coverage: Robust protection across fraud vectors, payment types, channels and geographics with processor-agnostic deployment gives businesses maximum flexibility as their priorities evolve.
  • Transparency and control: Clear decision logic, adjustable risk thresholds, detailed reporting and API integration deliver actionable insights for effective payment fraud prevention.

 

Partnering for protection

The payments landscape will only grow more complex. Businesses should look for a partner that offers intelligent technology with these key attributes. They should also look for consultative risk management that improves their tools and processes without the outsized price tag.

CSG Forte is on the forefront of addressing payment fraud schemes. Our payment fraud protection tools can help your business stay ahead of bad actors. Learn how to keep legitimate payments flowing smoothly while stopping fraudulent activity in its tracks. Explore the CSG Forte website and sign up for a demo.

Stronger ACH Fraud Controls: Prepare for Nacha’s New Rules

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Imagine waking up to find that a single fraudulent transaction drained your business account overnight. As digital payment fraud becomes more advanced, Nacha is improving security. They are introducing new rules for Automated Clearing House (ACH) monitoring that require proactive action.

Although they’re safer than paper checks, ACH transactions are vulnerable to fraud.

In 2024, over a third (38%) of organizations faced ACH debit fraud. Additionally, 20% suffered from ACH credit fraud. In comparison, 63% experienced check fraud.

This information comes from the 2025 AFP Payments Fraud and Control Survey Report. ACH fraud includes Account Takeover and Authorized Push Payment (APP) Fraud. In Account Takeover, the fraudster gets unauthorized access to the victim’s account. In APP Fraud, the fraudster tricks the victim into sending money to a fake account.

But, while fraud threats continue to multiply, businesses are also gaining access to increased protections. For example, the countdown has begun to Nacha’s new ACH fraud monitoring rules, which take effect in 2026. This rule change is part of Nacha’s Risk Management package. It aims to stop fraud attempts and help recover lost funds.

This means most businesses need to implement or strengthen their ACH fraud detection capabilities. Payment service providers can give you an ACH guide to help you set up monitoring and prevent ACH fraud. These steps can lower your organization’s fraud risk and help you follow Nacha’s new rules.

 

What ACH fraud controls will Nacha require?

Each party involved in ACH payments must create “risk-based” processes to spot possible fraud. They should review these processes at least once a year. This helps to find gaps and make improvements.

It also allows users to allocate resources based on transaction risk. Nacha states, “A risk-based approach should not mean that no monitoring is needed at all.” At a minimum, organizations should assess risk to identify and distinguish higher-risk transactions from lower-risk ones.

 

What ACH fraud controls will Nacha not require?

You do not need to monitor transactions in real-time before processing entries. However, it offers the best chance to find and stop potential fraud.

When does the ACH fraud monitoring rule take effect?

  • March 20, 2026 (for organizations that originate > 6 million ACH transactions)
  • June 19, 2026 (for everyone else who processes ACH payments)

Who is affected by this rule?

The changes will affect any business that processes electronic payments, from payroll deposits to vendor payments. Specifically, the rule applies to ACH originators and receivers.

What are the anticipated benefits?

  • Fraud monitoring reduces the incidence of successful fraud and improves the quality of transactions in the ACH Network.
  • Expanding fraud detection duties to more parties in the ACH Network creates more chances to find and stop fraud. This is especially true for fraud that uses credit-push payments.

How will these new rules impact originators?

Many originators will need to implement or update their fraud-detection processes and procedures. This will be more of a lift for companies that are not currently monitoring fraud. Organizations that already use a monitoring system for WEB Debits or Micro-Entries will feel fewer effects.

Covered institutions will need risk-based controls that detect deception and false pretenses—not just unauthorized access. Originators should monitor behavioral anomalies, social engineering tactics and misrepresented identities.

With less than six months to prepare for Nacha’s ACH fraud control rules to take effect, now is the time to:

  • Check your current fraud detection systems and processes: Find gaps and have your risk team look at your ACH account validation. They should also review your real-time fraud detection abilities.
  • Implement or upgrade monitoring processes to fill in the gaps: Please refer to the best practices section below.
  • Educate your teams about the new Nacha requirements.
  • Review your contracts: Your legal team should assess vendor and partner agreements’ alignment with the new fraud monitoring requirements.
  • Plan your ongoing compliance strategy: stablish regular processes to review fraud monitoring processes at least annually.

 

3 best practices for proactive fraud monitoring

  1. Validate account information. Account validation is a critical pre-transaction step, especially for first-time use of an account number. Scrutinize all payments to a new account number or a new vendor for a designated period.
  2. Employ real-time fraud detection. The most secure payment systems use behavioral analysis to distinguish legitimate customer activity from fraud. Originators must establish a baseline of normal activity to be able to detect outliers and suspicious patterns.
  3. Look for these red flags:
    • Sudden changes in payment details. Someone pretending to be a vendor or employee asks to change their bank account number. This is concerning if the request comes from a generic email address, not the official company domain.
    • Velocity spikes. Watch for a sudden, big increase in the number or amount of payments being sent. This is important, especially to a new account or one that was not used much before.
    • Unusual dollar amounts. Flag payments that fall outside the typical range for an employee’s salary or a vendor’s invoice amount.
    • Small-dollar test transactions followed by larger withdrawals. These may indicate credential testing.
    • Multiple ACH credits from unrelated sources deposited into a single account, followed by quick withdrawals. This behavior suggests possible mule account activity.

 

Simplify ACH fraud monitoring with CSG Forte

CSG Forte empowers your organization to meet Nacha’s evolving ACH fraud monitoring standards with confidence. Whether you run a small business or a large company, Forte’s solutions help you meet Nacha and industry rules. This gives you peace of mind in a complicated payment world.

CSG Forte Verify uses two strong tools. CSG Validate checks account and routing numbers. CSG Authenticate confirms who owns the account.

Together, these solutions help prevent impersonation and unauthorized ACH transactions. With Forte’s advanced technology, you can lower fraud risk, improve transaction accuracy, and reduce false positives. This ensures a smooth experience for your customers.

Forte’s real-time transaction monitoring analyzes payment activity as it happens, identifies behavioral anomalies and flags suspicious transactions before anyone moves funds. This proactive approach strengthens your defenses and helps safeguard your business from evolving fraud threats.

Preparing for Nacha’s new fraud monitoring requirements doesn’t have to be overwhelming. Talk to CSG’s risk management experts. They can help you with your needs and create a plan to keep your organization safe and compliant.

Press Release: NEC to Acquire CSG, Strengthening Its Position as a Global Leader in Digital Transformation

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TOKYO, Japan and DENVER, Colorado – October 29, 2025 – NEC Corporation (TSE: 6701) (“NEC”) and CSG Systems International, Inc. (NASDAQ: CSGS) (“CSG”) today announced they have entered into a definitive agreement under which NEC will acquire CSG for US$80.70 per share in cash, for a total enterprise value of approximately US$2.9 billion, or JPY438.5 billion, including debt. The transaction price represents a 17.38% premium over CSG’s closing price of US$68.75 on October 28, 2025, and a 23.07% premium to the volume-weighted average price (VWAP) of CSG common stock for the 30 days ending October 28, 2025.

The transaction strengthens NEC’s position as a leader in next-generation digital solutions and accelerates AI and cloud-driven innovation for customers across industries. It will bring together complementary software and services across digital transformation, expanding NEC’s software- as-a-service (SaaS) portfolio, customer footprint, and global reach.

Adding CSG’s proven SaaS product portfolio and strong global customer base to NEC and its subsidiary, Netcracker, delivers meaningful value to customers through a diversified and expanded product portfolio. The transaction will enable NEC to deliver a more competitive offering in next-generation environments, such as global communication service providers, and to leading brands in high-growth sectors such as media, financial services, healthcare, retail and logistics. The transaction builds on the capabilities of NEC’s subsidiary, Netcracker, which provides a complementary global footprint and deep expertise in BSS (Business Support Systems) and OSS (Operational Support Systems), aligning naturally with CSG’s strengths.

The agreement has been unanimously approved by both companies’ Boards. The transaction is expected to close within the 2026 calendar year, subject to the satisfaction of customary closing conditions, including approval by CSG shareholders and receipt of required regulatory approvals.

Advisors

Goldman Sachs is serving as financial advisor, Freshfields is serving as legal advisor, and FGS Global is serving as strategic communications advisor to NEC. Jefferies is serving as financial advisor, Simpson Thacher & Bartlett LLP is serving as legal advisor, and Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to CSG.

About NEC

The NEC Group leverages technology to create social value and promote a more sustainable world where everyone has the chance to reach their full potential.

NEC Corporation was established in 1899. Today, the NEC Group’s approximately 110,000 employees utilize world-leading AI, security, and communications technologies to solve the most pressing needs of customers and society.

About CSG

CSG empowers companies to build unforgettable experiences, making it easier for people and businesses to connect with, use and pay for the services they value most. Our customer experience, billing and payments solution help companies of any size make money and make a difference.

With our SaaS solutions, company leaders can take control of their future and tap into guidance along the way from our fiercely committed and forward-thinking CSGers around the world.

FORWARD-LOOKING STATEMENTS

The foregoing contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include, but are not limited to, statements concerning the Company’s expectations, plans, intentions, strategies or prospects with respect to the proposed transaction. These statements are often identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “hope,” “hopeful,” “likely,” “may,” “optimistic,” “possible,” “potential,” “preliminary,”

“project,” “should,” “will,” “would” or the negative or plural of these words or similar expressions or variations. Forward-looking statements are made based upon management’s current expectations and beliefs and are not guarantees of future performance. Such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. These factors include, among others:

(i) the ability of the parties to complete the proposed transaction on the anticipated terms and timing, or at all; (ii) the satisfaction or waiver of other conditions to the completion of the proposed transaction, including obtaining required shareholder and regulatory approvals; (iii) the risk that the Company’s stock price may fluctuate during the pendency of the proposed transaction and may decline if the proposed transaction is not completed; (iv) potential litigation relating to the proposed transaction that could be instituted against the Company or its directors, managers or officers, including the delay, expense or other effects of any outcomes related thereto; (v) the risk that disruptions from the proposed transaction will harm the Company’s business, including current plans and operations, including during the pendency of the proposed transaction; (vi) the ability of the Company to retain, motivate and hire key personnel; (vii) the diversion of management’s time and attention from ordinary course business operations to completion of the proposed transaction and integration matters; (viii) potential adverse reactions or changes to business relationships resulting from the announcement, pendency or completion of the proposed transaction; (ix) legislative, regulatory and economic developments; (x) potential business uncertainty, including changes to existing business relationships, during the pendency of the proposed transaction that could affect the Company’s financial performance; (xi) certain restrictions during the pendency of the proposed transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; (xii) unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, outbreaks of war or hostilities or global pandemics, as well as management’s response to any of the aforementioned factors; (xiii) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (xiv) unexpected costs, liabilities or delays associated with the transaction; (xv) the response of competitors to the transaction; (xvi) the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction, including in circumstances requiring the Company to pay a termination fee; (xvii) the ability to realize the anticipated benefits of the proposed transaction, including the expected synergies and cost saving; (xviii) the possibility that competing or superior acquisition proposals for the Company will be made; and (xix) other risks set forth under the heading “Risk Factors,” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and in the Company’s subsequent filings with the Securities and Exchange Commission. You should not rely upon forward-looking statements as

predictions of future events. Actual results and outcomes could differ materially from the results described in or implied by such forward-looking statements. Forward-looking statements speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update or revise these forward-looking statements.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed acquisition of CSG Systems International, Inc. by NEC Corporation. In connection with this proposed acquisition, CSG Systems International, Inc. plans to file one or more proxy statements or other documents with the SEC. This communication is not a substitute for any proxy statement or other document that CSG Systems International, Inc. may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF CSG SYSTEMS INTERNATIONAL, INC. ARE URGED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN

IMPORTANT INFORMATION. Any definitive proxy statement(s) (if and when available) will be mailed to stockholders of CSG Systems International, Inc. Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC by CSG Systems International, Inc. through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by CSG Systems International, Inc. will be available free of charge on CSG Systems International, Inc.’s internet website at https://ir.csgi.com/investor-home/default.aspx or upon written request to: CSG Systems International, Inc., Investor Relations, 169 Inverness Dr W, Suite 300, Englewood, CO 80112, or by email at [email protected].

Participants in Solicitation

CSG Systems International, Inc., its directors and certain of its executive officers and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of CSG Systems International, Inc. is set forth in its proxy statement for its 2025 annual meeting of stockholders, which was filed with the SEC on April 1, 2025. To the extent that holdings of CSG Systems International, Inc.’s securities by its directors or executive officers have changed since the amounts set forth in CSG Systems International, Inc.’s proxy statement for its 2025 annual meeting of stockholders, such changes have been or will be reflected on Initial Statements of beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC.

Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement relating to the proposed transaction and other relevant materials to be filed with the SEC when they become available. These documents can be obtained free of charge from the sources indicated above.

CSG Systems International, Inc. Investor Relations

169 Inverness Dr W, Suite 300, Englewood, CO 80112 [email protected]

https://ir.csgi.com/investor-home/default.aspx

CONTACTS

For NEC
Media

Joseph Jasper
[email protected]

Danya Al-Qattan/Ben Spicehandler
FGS Global
(212) 687-8080

Investors

IR office
Email: [email protected]

For CSG
Media

Kristine Ostegaard
[email protected]
+44 (0)79 2047 7204

Tim Lynch/Mahmoud Siddig
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

Investors
John Rea [email protected]
(303) 200-3161

Navigating the Forrester Merchant Payment Providers Landscape: How CSG Forte Addresses What Matters Most

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We’re excited to announce that CSG Forte has been included in the Forrester Merchant Payment Providers Landscape, Q4 2025 report—a recognition that we believe highlights our quality products and service, as well as our commitment to empowering organizations of all sizes with scalable, secure and future-ready payment solutions.

But what truly sets CSG Forte apart in a crowded field of payment providers? We believe the answer lies in our deep partnership approach and the real-world results our clients achieve.

 

How payments are evolving—and why merchants need to keep up

The payments industry continues to evolve rapidly, moving away from cash and checks and toward digital wallets and omnichannel experiences. In fact, cashless transactions are expected to triple from 2020 to 2030—a shift that no organization can afford to ignore. For enterprise organizations, this means integrated payments are no longer a “nice to have”—they’re a strategic necessity for growth, customer satisfaction and competitive differentiation.

Industry experts predict that continued cloud adoption and digital transformation across the software vendor sector will boost industry growth by nearly 24% annually through 2032. To stay ahead, businesses must develop a payment integration strategy that not only meets today’s needs but is also flexible and scalable enough to adapt to tomorrow’s innovations.

 

Why embedded payments matter

Facilitating online payments allows businesses to own the full payment flow, delivering seamless, branded experiences that reduce friction at checkout and boost conversion rates. With CSG Forte, merchants can:

  • Centralize payment data for better support and optimization.
  • Minimize latency and failed transactions.
  • Enable recurring billing and support emerging payment methods.
  • Scale efficiently with modular infrastructure and flexible monetization models.

But the benefits go beyond technology. By partnering with a payment processor like CSG Forte, organizations of any size gain access to infrastructure, compliance expertise and ongoing support—without having to divert resources from their core business.

 

Real-world results: Buildium and Rentec Direct

The impact of CSG Forte’s embedded payments strategy is best illustrated by our clients’ success stories.

Buildium, a leading property management software provider, needed a payment processing solution that could handle high transaction volumes and offer cost-effective ACH payments. By partnering with CSG Forte, Buildium was able to launch a tailored Automated Clearing House (ACH) solution quickly, driving 35% year-over-year growth in transactions and a 39% increase in dollars processed.

The partnership’s stability and personalized support were key: “Having the same person on our account from nearly the beginning of the relationship has made a huge impact,” said Buildium’s cofounder. The results speak for themselves—Buildium scaled rapidly and was ultimately acquired for $580 million.

Rentec Direct, another property management platform, faced inefficiencies with traditional rent payment methods. By integrating CSG Forte’s digital payment solutions, Rentec enabled online and recurring payments, reducing late payments from 22% to just 1% among users of the recurring system.

Over five years, Rentec saw an 112% increase in average payment volume and 98% revenue growth. During the COVID-19 pandemic, landlords using CSG Forte-powered recurring payments experienced 20% less churn and fewer vacancies—a testament to the resilience and value of embedded payments.

 

The CSG Forte partnership difference

So, what makes CSG Forte the partner of choice?

  • Security & compliance: Forte is PCI-compliant, offering end-to-end encryption and tokenization to protect sensitive payment data. Achieving this level of security independently is costly and complex; with CSG Forte, it’s built in.
  • Flexibility & customization: Our APIs and developer-friendly solutions allow companies to quickly adapt to industry changes and evolving customer preferences.
  • Fast, smooth onboarding: CSG Forte’s streamlined onboarding process helps merchants get up and running quickly, making a strong first impression and accelerating time to value.
  • Scalable revenue models: Whether through referral partnerships, payment facilitation-as-a-service or full payment facilitation, CSG Forte offers multiple paths to monetization that grow with your business.

 

The Forrester landscape

Inclusion in the Forrester Merchant Payment Providers Landscape is more than a milestone—For us it’s repeated validation of CSG Forte’s ability to help merchants deliver seamless, secure and scalable payment experiences. Our embedded payments strategy empowers software providers to differentiate their platforms. This change can unlock new revenue streams and future-proof businesses in a rapidly changing industry.

Reports like the Forrester Merchant Payment Providers Landscape are invaluable tools for organizations that are seeking clarity in a rapidly evolving payments landscape. They provide unbiased, objective insights that help organizations cut through complexity, benchmark providers and make well-informed decisions to drive business growth and innovation.

Ready to learn more? Connect with our payment experts to see how CSG Forte can help you embed and monetize payments for long-term success.

Disclaimer: Forrester does not endorse any company, product, brand or service included in its research publications, and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity here.

CIO | 5 steps for transforming a business from the inside out

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CSG Forte President Saurabh Joshi explains the 5 steps for transforming a business from the inside out.

FinTech Magazine | Saurabh Joshi: Why Stablecoins Transform Cross-Border Payments

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CSG Forte President Saurabh Joshi explains how blockchain-based currencies could revolutionize international B2B transactions while reducing costs.