Category: Industry

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!

 

What Are Electronic Payments and How Can They Help Your Business?

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Imagine. You want to purchase a doughnut at the local bakery, but instead of handing over your credit card, you reach into your pocket and pull out a few grains you picked on your farm earlier that day. After all, the baker can use the grains to make more dough. Seems crazy, right? However, the barter system was a cornerstone of transactions in our early history. Lucky for us, advances in payment acceptance mean you no longer are tied to your farm (in fact, you don’t even need to have a farm nowadays). But the biggest advance in payment acceptance isn’t particularly tangible. Why? Electronic payments. The invention of electronic payments makes receiving and making payments online, via mobile and at the point of sale a whole lot simpler.

 

What Are Electronic Payment Systems or E-Payments?

You might be asking, what exactly encapsulates the meaning of electronic payments. the Electronic payments are any payment completed through an electronic medium. These methods include credit and debit cards, ACH payments and virtual cards. These electronic methods replace physical checks or cash, and they can occur at the point of sale or online. For example, consumers can use their virtual rewards card to pay for their coffee at the drive-through.

 

The Benefits of E-Payments Process 

With e-payments, users can enjoy:

  • Payment ease: Many forms of e-payment allow users to pay with as little as a tap. With an easier payment process, you improve the user experience for payers and payees.
  • Reduced processing costs: Processing checks involves printing, signing and mailing, requiring manual labor and material expenses. Electronic payments eliminate these processes, saving you money on payment processing.
  • Greater visibility: With electronic payments, you can track transaction status, access financial metrics and follow audit trails for compliance needs. These tracking capabilities are often integrated into e-payment platforms, so following the status of your financials is much easier than when manually processing physical payments.
  • Improved security: Handling cash or checks can easily lead to theft or fraud. With electronic payments, you eliminate passing physical money between hands, and you can enjoy built-in encryption that protects user data during transactions.

 

Types of Electronic Payments Systems and Their Advantages

There are various types of e-payments, and they all offer unique advantages.

ACH Debit Pull

The Automated Clearing House (ACH) processes electronic transactions between bank accounts. In the case of an ACH debit pull, a payee initiates a pull of funds from a payer’s account. One of the most common examples of a debit pull is direct deposit for employees.

These debit pulls are typically low-cost, and sometimes they’re completely free. The most significant advantage of this electronic payment is it eliminates the need to collect and process checks or deposit cash.

ACH Credit Push

An ACH credit push is the opposite of a debit pull. Rather than the payee pulling the funds from the payer’s account, the payer pushes the amount out of their account and to the payee. Credit pushes are common for a range of online payments where the vendor is an established company. ACH payments often come with lower processing fees than credit cards, making them a practical option for some businesses.

Credit Cards and Debit Cards

With a credit card, a user borrows money from their card issuer up to a certain predetermined limit. The cardholder is then responsible for paying this borrowed money back and can be charged interest for outstanding balances. Debit cards on the other hand rely on funds that users have deposited in a bank account.

In the case of e-payments, credit cards are fast and accessible. This secure payment method is easy to use at the point of sale. With the growing use of chip payments with credit cards, every transaction has a unique code that makes it challenging to steal sensitive information. Credit cards offer more protection against fraud as you are borrowing money are in turn not responsible for as much liability. A victim of debit card fraud could be fully liable for fraudulent transactions depending on the time since the transactions and bank policies.

Cryptocurrency

Cryptocurrency is special as it does not rely on third parties like banks or governments to process payments. Crypto has elevated tremendously in popularity over the last five years due to this decentralization factor. Another advantage of cryptocurrency as a digital payment is that there are low payment processing fees.

Mobile Pay, Digital Wallets, and Contactless NFC Payments

Mobile pay relies on a mobile device, such as a smartphone, smartwatch or tablet, to complete a transaction. Many of these devices are compatible with mobile wallets that allow users to upload their card information for use at point-of-sale terminals. These terminals must have near-field communication (NFC) to receive payment information from the mobile device and accept payment.

Mobile payments can also include mobile payment platforms that use ACH payments to complete transactions. This payment type offers convenience since most people carry some kind of mobile device. Additionally, these mobile payment methods typically require authentication before completing a transaction, making them a secure electronic payment option. NFC payments also provide the advantages of being fairly hygienic, quick, and very secure.

 

The History of Electronic Payment Systems

Electronic payments have their roots in the 1870s, when Western Union debuted the electronic fund transfer (EFT) in 1871. Since then, people have been enamored with the idea of sending money to pay for goods and services without necessarily having to be physically present at the point of sale. Technology has been a driving factor in the development of electronic payments. Today, making a purchase is as easy as tapping a button on your smartphone. Work with streamlining payment methods has been hard-won.

From the 1870s until the late 1960s, payments underwent a slow but gradual transformation. In the 1910s, the Federal Reserve of America began using the telegraph to transfer money. In the 1950s, Diner’s Club International established itself as the first independent credit card company, soon followed by American Express. In 1959, American Express introduced the world to the first plastic card for electronic payments.

Entering the 1970s, people became more reliant on computers as part of the buying process. In 1972, the Automated Clearing House was developed to batch process large volumes of transactions. NACHA established operating rules for ACH payments just two years later.

 

The (Wide, Wide) World Wide Web

Then along came the Internet. In the 1960s, ARPANET, a precursor to the modern Web, was built as a military network to improve communication. In the 1990s, online internet banking services were offered to bank customers. Those first online payment systems were anything but user-friendly—users had to have specific encryption knowledge and use data transfer protocols.

Soon, development across the Web, and the eventual invention of Web 2.0, set the stage for online sites to participate in what’s now known as e-commerce. In 1994, Amazon, one of the pioneers of eCommerce, was founded, along with a slew of other websites that we know and love to purchase on.

Payment acceptance and securing payments have been specific challenges for e-merchants and payment processors. In the early days of electronic payment processing, you needed special equipment and software to send a payment for goods. Now, payment acceptance can be integrated into websites, mobile platforms, and at the point of sale for scalability amongst merchants big and small.

 

Keeping Your Private Data Safe

As technology changes at an increasingly rapid pace, however, keeping your data safe has been at the forefront of most merchants’ minds. It’s easy to see why. Data breaches can have long-reaching financial and systematic impacts on businesses and can damage the reputation of long-standing organizations. What’s more, breaches can also spell financial ruin for companies without the financial, legal and logistical bandwidth to weather the storms of a hack.

Regulations by both NACHA and PCI standardize how payment data is received, stored, transmitted and processed for each transaction and help reduce the likelihood of an attack. However, it’s important that payment processors who offer PCI compliance programs stay ahead of those who wish to do harm to hardworking business owners by hacking their systems.

For point-of-sale transactions, EMV-enabled (also known as “chip card”) transactions add another level of encryption to your sales when performing card-present sales. End-to-end encryption, like what CSG Forte offers, provides a level of security to your entire payment processing system from terminal to payment acceptance and beyond. When accepting payments online, SSL webpages and other methods of data encryption help ease the worry of consumers and take some of the burden off merchants to remain PCI-compliant.

 

What’s Next For Electronic Payment Systems?

According to a McKinsey study from 2020, 78% of Americans currently use at least one form of digital payment. Offering consumers more ways to efficiently pay bills and purchase the things they want should be a key objective for all modern business owners.

Hot-button technologies like cryptocurrency and blockchain could be another way payment processing gets another technological push into a new era. After all, some cryptocurrency contenders aim to revolutionize the processing time for electronic payments, and if successful, can completely change the game for the payments industry. But in the interim, new trends like PIN on Glass acceptance to allow customers to use their PIN for mobile point-of-sale transactions, as well as contactless payments, same-day ACH and advancements in payment APIs all are geared towards making payment processing simpler, faster and more efficient.

For the last century and a half, the world of electronic payments has seen several notable technological shifts. As we speed through the industrial advances that the payment industry currently faces, we will only see a payment processing scheme that is safer, faster and operates how consumers and merchants need.

 

The Benefits of E-Payments for Your Business

Your business can benefit from e-payments with the help of:

  • Improved supplier relationships: When your vendors can enjoy the ease of e-payments, they know that you value their time, security and ease of payment processing. These e-payments also include remittance data for ease of reconciliation. Many modern suppliers may come to expect e-payment options and may even turn down relationships without this convenience factor.
  • Increased customer satisfaction: Your customers will enjoy the convenience and security of e-payments as much as your vendors. When paying for products or services is easy, consumers are more likely to follow through with a purchase.
  • Reduced costs: Processing cash and checks can require hours of physical labor and expenses dedicated to stamps and mailing. Enjoy the reduced administrative overhead of e-payments.
  • Enhanced security: With encryption and unique transaction codes, e-payments are far more secure than physical cash or checks. Plus, electronic payments eliminate the risk of losing cash or checks before they get deposited.
  • Greater flexibility: If you offer various types of e-payments, consumers can pay in a way that works for them. For example, a buyer who forgot their wallet can use their mobile wallet to cover costs. This flexibility encourages more sales.

 

How Can CSG Forte Help Optimize Your Electronic Payment Systems

CSG Forte offers a comprehensive electronic payment solution that supports online, in-person and phone payments. Our payments platform supports secure, flexible payments with reliable reporting and a user-friendly interface. With recurring payment capabilities, intuitive bill presentation, point-of-sale support and trusted security practices, CSG Forte supports the success of modern businesses.

See what electronic payments can do for you, and get started with our platform today.

Elevate Your Government Services with Multichannel Payment Processing 

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In an era when digital services are continuously transforming the way we live and work, government agencies are not exempt from consumers’ higher-than-ever expectations for seamless and flexible payment experiences. Not only are consumers becoming more comfortable with making online payments services (nine out of 10 used a form of digital payment in the past year, according to a recent survey), but they’re also expecting more out of their payments platforms—and that includes government agencies.

Constituents have come to expect the same level of convenience and modernity from their public service providers that they receive from the private enterprises they buy from. But it’s been challenging for government entities, with their wide range of services and offerings, to keep pace with those expectations. They face distinct payment obstacles due to legacy systems, outdated processes, limited budgets and changing regulations—and constituents have taken notice.

 

Why Multichannel Payments Processing?

Offering multichannel payment processing can enhance CX while also improving operational efficiency. Government agencies that offer the flexibility of multichannel payment processing, which is the ability to accept payments via several platforms or channels, give constituents multiple convenient options to complete transactions. For example, constituents might have the option to pay via an interactive voice response (IVR) system, through a secure website or even using an in-app payment feature on their smartphones. Agencies can cater to different preferences and needs, fostering a more user-friendly and efficient experience.

Providing a broad selection of ways to pay can also help government agencies, many of which are already contending with budget cuts and increasing costs, to collect on delinquent accounts by allowing payers to use their preferred payment method. That’s why it’s so important that government agencies choose an experienced, knowledgeable software provider that can tailor the program to that department or agency’s unique needs—whether that’s a municipal internet connection, electrical service, garbage pickup or any other essential government-provided service.

 

More Channel Choices, Less Constituent Burden

Think about the last time you paid a bill. Whether it was your utility bill or a parking fine, chances are you wanted the process to be quick, easy and flexible. Your constituents who engage with the government services you offer are no different.

By leveraging multichannel payment processing, agencies can ensure more timely payments while reducing the burden on their administrative staff as well as customers, who report feeling overburdened by the “time tax” associated with interacting with government agencies. It also increases trust in your constituents’ perception of public agencies, which a recent McKinsey & Company survey found is suffering among most constituencies.

 

Personalizing the Government Payment Experience

Consumers want choices, whether they are paying taxes, fines or service fees. They want personalized self-service options. Unfortunately, the current state of government payment systems often lacks the personalization and flexibility that constituents crave.

Government agencies often grapple with outdated, fragmented payment systems that make it difficult to offer consistent and personalized CX and may make for more difficult reconciliation processes. To meet both consumer expectations and strict government regulatory requirements, payments must be secure and compliant across all channels. Having a payments platform with comprehensive reconciliation capabilities ensures efficient and correct reporting and auditing processes—a must for government agencies.

 

Related Article: Navigating the Complexities of Payment Processing in Government Institutions

 

The Multichannel Payment Journey in Government

What does a multichannel payment journey look like for government services? Let’s walk through an example:

  • Initial notification: The consumer receives a notification that their utilities payment is due. Depending on their preferences, they receive an email notification or text message with a payment link, or statement in the mail that includes a QR code linking to a payment gateway.
  • Payment initiation: The consumer clicks the link or scans a QR code to a secure payment page.
  • Payment secured: The consumer enters their payment information, and the transaction is processed securely.
  • Future service options: The consumer opts into the offered automatic payment program (if they aren’t already enrolled) and chooses to receive text notifications so they know when to expect their next bill.

Here you can see how multiple channels integrate to provide a flexible and convenient payment experience for constituents.

 

Related Article: Understanding Multichannel Payments

 

Offering a Payment Channel for Everyone

Today’s consumers have diverse preferences when it comes to making payments. CSG Forte offers a variety of options to ensure everyone can pay in a way that suits them, including:

  • SMS (text) message: Constituents can just click a link within an SMS message that directs them to a personalized invoice for payment. Two-way texting encourages on-the-fly questions and organic interactions that increase trust.
  • Contact center: With CSG Forte, contact center agents can securely process payments over the phone, reducing the average payment call length by over three minutes per call.
  • Interactive voice response: IVR payments are accessible 24/7, they don’t require an internet connection, and they cost less to process than live payments taken by a call center agent.
  • QR codes: Printed statements can include these two-dimensional barcodes, which can link to personalized invoices. Agencies can even enable field-based employees to generate QR codes for quick on-site payments.
  • Email: Email remains a reliable channel for a large portion of constituents, whether they’re getting the initial statement or notice of a failed payment attempt they need to reconcile.
  • In-person payments: Agencies can literally meet people where they’re at with secure point-of-sale devices and card readers, ensuring quick transactions and better CX.

 

CSG Forte: Delivering a Modern Government Payment Experience

CSG Forte offers numerous benefits that pave the way for personalized payments and better outcomes for government agencies:

  • Improved cash flow: By processing payments on constituents’ preferred channels, agencies can encourage prompt payments and improve collections.
  • Fast time-to-value: CSG Forte’s low- to no-code solutions allows agencies to personalize the payment experience quickly, often in days or weeks—not months.
  • Payment security: Whether via SMS text or a call center agent, CSG Forte’s payment platform ensures secure processing on all channels.
  • Effective payment reminders: Sending reminders on constituents’ preferred channels increases the likelihood of on-time payments.
  • Enhanced consumer experience: Offering consumers the ability to pay on their channel of choice and seamlessly switch channels during the payment process provides a personalized and frictionless experience.

Just like paying taxes is inevitable, governments are no longer exempt from offering the multichannel payment experience their constituents have grown accustomed to. CSG Forte helps government agencies to meet these expectations, providing a secure, efficient and consumer-centric payment solution. By embracing multichannel payment processing, agencies can enhance CX, find uncollected revenue and save agency employees time and effort, allowing them to focus on other administrative tasks.

Are you ready to offer your constituents the payment experience they expect on their channel of choice? Contact one of our experts to take the first steps toward implementing CSG Forte’s multichannel payment solutions to transform your payment processing.

How to Verify an eCheck

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If your business accepts payments, staying up to date about check verification is crucial. This is especially important as technology evolves and eChecks and ACH payments are becoming more prevalent. Accepting a bad or fraudulent check that bounces can cost you money.

You can verify eChecks manually or through an automated process. Both methods can help you verify if the check is valid, but you won’t always be guaranteed there’s money in the account when the check clears. Adopting robust options to verify eChecks and ACH payments can assist in authenticating captured data before processing and authorization.

Manual eCheck Verification

You can manually check for verification by examining some crucial details of the sender. Ensuring they have valid proof of identity can be the first step, after which you can look for any suspicious signs around the eCheck itself. Verify that the amount you’re due is accurate, as well as the security features that accompany the eCheck. Things to look out for can include a unique security code, eCheck verification number or a watermark accompanying the eCheck.

With ACH payments, checking for the correct transaction details and ensuring that the account holder authorized the payment can help safeguard transactions. You can also call the relevant bank to ensure the payer is legitimate.

If you deposit the check and there’s enough money in the account to cover the transaction, you’ll have to wait a few days before it clears. The account holder can withdraw all their funds during this window. If you deposit a check and there’s no money, you’ll have to pay bank fees and attempt to retrieve the funds you’re owed.

Automated eCheck Verification

You can do an automated check verification through the original payer’s bank. These are only partially helpful, as the bank only flags accounts with a history of writing bad checks. The bank doesn’t divulge whether the account has the available funds.

Factors to Consider When Verifying eChecks

When your business receives an eCheck or ACH payment from a customer, there are various factors to remember before you deposit it. A valid bank account with no funds leaves you with bank fees. You’ll also have to take further steps to retrieve your funds for products or services rendered. Fraud, manual errors and bad checks can cost your business money and delay payments received.

Consider the following elements when accepting eChecks and ACH payments from customers:

  • It’s important to verify whether the account exists to mitigate fraud and financial loss.
  • You could be working with a bad routing number or a blacklisted TRN, which can be expensive and delay payments.
  • Invalid checksums or check-digit algorithm failures can cost you money and time and indicate an attempt at fraud.
  • Using sophisticated measures, a fraudster may fabricate an account that seems open and valid but isn’t, leaving your business vulnerable.

These factors can be ascertained with sophisticated databases and services. Additional verification consults the status reported by the customer’s bank. Validating an account in real time is one of the most essential steps you can take in EFT and eCheck verification.

Challenges in eCheck Authentication

As the financial industry develops more sophisticated ways of securing the transfer of funds and amplifying fraud prevention, criminals follow suit. Fraudsters are increasingly finding new ways to commit eCheck and ACH fraud, including using legitimate bank account numbers and routing numbers to impersonate people, emptying accounts right before an eCheck clears and other sophisticated methods.

Common approaches to fraud include:

  • Account takeovers: Fraudsters gain access to someone’s bank account, creating fake eChecks or conducting unauthorized ACH transactions.
  • Fake eChecks: Criminals steal bank account information and use it to create counterfeit eChecks, which they then use to pay for goods.
  • Identity theft: Scammers steal personal information to create new bank accounts or gain access to existing ones. Using this information, they transact with fraudulent eChecks or conduct unauthorized ACH transactions.
  • Phishing scams: Fraudsters send messages that appear to be legitimate, trick individuals into revealing their account information, and initiate fraudulent eCheck and ACH transactions.

How CSG Forte Can Help

CSG Forte reduces the complexity of payment processing and authentication. Our eCheck payment processing provides a seamless, safer way to accept eChecks and ACH payments.

You can accept electronic debit payments, credit cards and eChecks safely with our seamless, unified payment platform. Do business confidently with built-in eCheck fraud prevention. Sensitive data is kept safe with encryption, while tokenization replaces your client’s information with a meaningless code. You can process all electronic payments including eChecks on one simple, secured platform.

CSG Forte’s eCheck Authentication Solutions

CSG Forte has adopted several security mechanisms to bring you a comprehensive solution and ensure you get your funds with each transaction. You can integrate our secured platform seamlessly with your existing software.

Here’s a look at our check authentication process:

  • eCheck authorization: Your client provides their bank information through the online authorization form.
  • Robust electronic processing: The clients’ details are validated, and the amount is charged to their account. You request the funds through the ACH and receive your money after two to three business days.
  • Real-time authentication: Validation occurs in real time, reducing the possibility of complications and fraud down the line.

We encrypt the process on both ends, and tokenization ensures all parties’ details are kept secure.

Key Features of CSG Forte’s eCheck Verification

We’ve added several features to our check verification process for extra security:

  • MICR analysis: We’ve included secure MICR line analysis on all our eChecks to help you compete with legacy methods while verifying sensitive data.
  • Account confirmation: With our Validate program, you can confirm bank account ownership by seamlessly authenticating the payer’s identity with rapid and actionable responses.
  • Robust authentication: You can check for an account holder’s full name or business name and ensure valid payments are processed, reducing returned eChecks or reversed ACH payments.
  • Validate and Validate+: Get account ownership and bank account status in real time during EFT transactions. Validate+ offers additional verification to mitigate fraudulent transactions.

Integrating CSG Forte for eCheck Verification

CSG Forte understands you need easy, simplified payment solutions that can integrate with your existing software. You can easily set up eCheck with our built-in security solutions alongside your existing platform or use it as a stand-alone solution.

Our simplified solution makes implementation seamless and scalable. It’s language- and software-independent, so you won’t need to alter your system or spend hours integrating the platform.

Partnering with CSG Forte gives you ongoing support, including:

  • Resources: You’ll have access to onboarding resources during implementation, allowing you to make the transition easily.
  • Training: We’ll train you on how to use your new software so you can manage it optimally.
  • Client care: Our dedicated team of customer service specialists will tend to any questions or concerns you may have.

Choose CSG Forte for Reliable eCheck Verification

Check verification can save you from paying expensive bank fees and help prevent profit loss. Advanced, robust authentication methods can help keep your business and funds safe.

Our eCheck technology brings you all the convenience of a check in a safer, electronic form. End-to-end encryption and tokenization help protect sensitive data and prevent fraud. Get a unified solution and validate your checks confidently with CSG Forte. You can get started today or complete the form on our contact page to reach out for more information. You can also call us at 866-290-5400, and a payment expert will gladly walk you through the process.

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!

 

Understanding 3 Types of Payment Processing Partners

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“Partners” can mean a lot of things in commerce and software. That’s certainly true of payment processing partners, and for businesses, it can get confusing exactly what a payment partnership is. What’s the difference between an ISO vs. ISV, for example?

Let’s say you want to offer ACH or credit/debit card processing to your customers, but you don’t have a payments solution of your own. You’ll likely need to enter into a partnership with a payment facilitator who does. A payment facilitator, or PayFac, is a vendor that provides the payment processing software and handles other services such as onboarding and underwriting merchants on the payment platform. The type of partnership you have with that provider, however, makes a huge difference in what you control and how it affects your revenue.

We’ll explain three main types of partnerships in payments: integrated partnerships, reseller partnerships and referral programs.

 

What Are Integrated Partnerships?

An integrated partnership is when you plug a payment processing provider’s software directly into the platform you offer merchants. This allows the merchants’ end-users to make payments within the partner’s solution without needing to leave your platform or application. This is the type of partnership we offer independent software vendors (ISVs), with CSG Forte as the embedded payment solution within their platform.

An ISV is a software company that builds a CRM (customer relationship management) platform, usually for a specific industry like property management or medical office management. When the ISV wants to enable their platform to take payments within the application, the ISV often integrates a payments platform. The ISV could select from different types of payment gateways to integrate, or it can hard-code to a payment gateway (like CSG Forte) in an exclusive partner relationship. 

Advantages of Integrated Partnerships

  • Seamless user experience: End-users enjoy a smooth, uninterrupted workflow. How they make payments feels like how they handle other tasks on your platform—they don’t have to shift to a different site, application or channel.
  • Increased revenue: Independent software vendors who offer payments through their platforms have a marked revenue advantage over those that don’t. A PYMNTs.com survey found that 83% of ISVs said they’ll see an increased revenue share from payment acceptance over the next 12 months–a sign that ISVs show a high degree of trust toward the results they can get from partnering with payment providers.
  • Strong merchant retention: When ISVs can offer integrated payments, it bolsters their platform’s value and increases its “stickiness” for vendors.

Not all integrated partnerships are created equal, and ISVs that work with them have clear ideas on what makes them successful. In a survey by the Strawhecker Group (TSG), the three payment processer attributes that ISVs most often cited as important were:

  • Competitive economic split
  • Easy merchant onboarding
  • Quality customer support

 

What Are Reseller Partnerships?

In a reseller partnership, a company (the reseller) buys payment processing services from a payments provider and resells them to its customers. The reseller usually rebrands the services as its own, providing a turnkey solution to its customer base it wouldn’t otherwise offer. The reseller is often referred to as an independent sales organization (ISO).

The ISO model is a common starting point for businesses entering the payments space. These organizations may even begin as a small group of sales reps who join to sell point-of-sale devices for brick-and-mortar stores to use (which may or may not be integrated into a checkout application). 

Advantages of Reseller Partnerships

  • Brand control: The reseller, or ISO, can market the payment services under its own brand, so it maintains direct control over the customer relationship.
  • Revenue generation: ISOs can set their own prices and margins, giving them more control over the potential profits they’d see from offering the payment services.
  • Turnkey solutions: It’s relatively quick to launch these capabilities once the business has selected the provider and then branded the solution.

With reseller partnerships, it’s important to note which aspects your business can control and which it can’t. ISOs are responsible for branding and marketing the payment services, for example. While they benefit from the payment provider’s product support, they have little to no influence over the product itself—its functionality, its user interface and other qualities of the actual payments software.

 

What Are Referral Partnership Programs?

Referral partnership programs involve referring potential customers to a payment processing provider in exchange for a commission or fee. The referring business doesn’t handle the payment processing directly. Instead, it leverages its network to bring new business to the provider.

Advantages of Referral Partnerships

  • Low overhead: Since there’s no need to manage the payment processing infrastructure, the referring partner bypasses the operational costs associated with that.
  • Commissions: Earning referral fees or commissions can be a lucrative revenue stream without the complexities of direct sales.
  • Focus on core business: Referral partners can keep focusing on their primary business while benefiting from additional income.

Entering a referral partnership program with a payments provider can be advantageous when you have a strong network of businesses that need payment solutions, but you don’t want to take on the cost and complexity of offering those solutions yourself.

 

Comparing the Payment Processing Partnerships

Another way to distinguish among partnership models is comparing how they leverage different strengths and fulfill different needs. We can look at three categories: the integration depth of the partner’s software, the revenue potential the partnership provides, and the nature of the relationship the business maintains with the end customer.

Integration Depth

  • Integrated partnerships: High degree of technical integration—embedded within the partner’s software
  • Reseller partnerships: Moderate level of integration—with rebranded services
  • Referral partnerships: Low to no integration—primarily based on lead generation

Revenue Potential

  • Integrated partnerships: High revenue potential through value-added services
  • Reseller partnerships: High revenue potential through markup on resold services
  • Referral partnerships: Moderate revenue potential through referral commissions

Customer Relationship

  • Integrated partnerships: Direct relationship with end-users, maintaining long-term engagement
  • Reseller partnerships: Direct relationship with customers, with control over branding and support
  • Referral partnerships: Indirect relationship, with the primary interaction handled by the payment provider

 

Choosing the Right Payment Processing Partner

Hopefully this clears up the (all too common) ISO vs. ISV confusion of terms. One thing to keep in mind: Businesses often start off with one type of partnership and mature into another one over time. They might begin by referring payment solutions, and then they eventually decide to offer them directly to customers in a white-label reseller model. ISVs might start off by integrating a payment provider’s software, then eventually embark on the journey toward becoming payment facilitators themselves to increase their revenue.

CSG Forte helps organizations of all kinds provide payment solutions in ways that meet their individual goals. Get a trusted vendor in your corner. Become a partner today.

Unlocking the Secrets to a Great Payment Vendor Partnership: A Discussion Featuring Forrester’s Lily Varon and CSG’s Jeff Kump

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To stay ahead of the competition, businesses must constantly seek partnerships that can propel them to new heights. One of the most important partnerships a company forges is with its payment platform provider. Choosing the right payments vendor sets the foundation for innovation, reliability and strategic prowess.

How do businesses know when they’ve gotten the payments partnership right? Jeff Kump, CSG Forte president, and guest speaker Lily Varon, Principal Analyst at Forrester dug into that question in a recent webinar, “What Good Looks Like: Making Payments Your Competitive Advantage.” They delved into the nuances that elevate a good payment vendor to greatness and offer insights into forging a partnership that stands the test of time.

Lily and Jeff discussed how companies can harness the payments process as a competitive advantage, explored various operational and technical aspects of payments systems. They also explained customer expectations and how to improve the customer experience.

 

Good vs. Great

A great payments vendor distinguishes itself by creating solutions that are efficient and intuitive, Lily explained. End users are looking for seamless transactions from service platforms that combine technology with user-centric design, creating a system where every feature resonates with the needs of the business as well as the customer.

When a vendor is good, they understand the strategic value of providing insights into payments and they’re making sure their platform is up to speed, Lily said. “Their payment optimization story is more than just the transactional piece,” she added. “But when we think about greatness, I think it is about becoming a strategic partner to their merchants and positioning themselves in that capacity.”

Payment vendors in today’s market can position themselves as visionaries that anticipate market trends and adapt swiftly. Consumers expect the businesses they’re buying from to do the heavy lifting for them, including mitigating fraud risks, without any friction or barriers to payment.

 

The New Customer Expectation: Forgettable Payments

Jeff gave the example of innovation in the rideshare experience that sets a standard of a “forgettable payment” and a better experience. “I think that does reset the expectation of the consumer of, ‘I don’t need to think about the payment. You have my information, you take care of it, don’t bother me.’”

“I love that ‘forgettable payment,’” Lily responded, “because—it almost feels sacrilegious as a payments nerd to say it—but we call payments the invisible invaluable for that very reason.”

“When a payment goes right, no one cares because it’s just embedded into the experience,” Lily continued. “But when it goes wrong, it’s the end of the world, right? The stakes are high.”

Creating a user-centric payments process can be a strategic advantage for businesses. It highlights the importance of optimizing payment processes to enhance customer experience and drive business growth. Lily explained that customers today expect a “rideshare kind of payment” from every vendor they work with.

“The last best customer experience that your customer has, regardless of where they have it, is the baseline of what their expectations are for their next experience,” Lily said. “So, this seamlessness of a rideshare kind of payment, it is still important for utility companies and insurance companies and public sector companies to recognize that the citizen or the member, the customer that you are serving is experiencing the seamlessness of these transactions elsewhere in their lives, and that is informing their expectations.”

As payment vendors strive to achieve greatness in their solutions, they can leverage emerging technologies such as artificial intelligence (AI) to enhance their offerings. AI can help payment vendors improve the speed, accuracy and security of their transactions, as well as provide valuable insights for their partners. “AI is transforming payments,” Jeff said. “It’s helping us do things better, faster and smarter.”

“Where we see AI, for example, in payments isn’t in the generative AI, customer-generated content. It’s about helping their payment partners be better for their customers,” Lily said. “It’s about navigating insights, navigating the report and using natural language to query data sets to get answers more quickly.”

 

The Quest for Quality Solutions

Quality is the cornerstone of a great payment vendor’s offerings. One sure way to ensure greatness, Lily said, is to make sure your company excels at the basics before adding the latest bell or whistle.

“Sometimes when people ask me about the future of payments, or what’s hot and new and exciting in payments, the answer sometimes is… a little bit less exciting than they might imagine,” she said. It’s still important and strategic to figure out what payment methods customers want to be using, she added, but “at the end of the day, customers want to achieve their goals. They want better shopping experiences, or better experiences, full stop. Not necessarily better payment experiences.”

The relationship between a business and a great payment vendor is a partnership of equals. It is a collaboration built on mutual respect, shared goals and an unwavering commitment to growth. A great vendor invests time in understanding the unique challenges and aspirations of their partners, crafting bespoke solutions that align with their strategic objectives.

Businesses looking for quality solutions should look for partners that can “help them optimize the [customer buying] experience on that front end, validating before the transaction to help them ensure that transaction is good,” Jeff said. “And then, on the back end, being able to help them if a transaction is declined, with retries.”

When embarking on the journey to find a great payments vendor, companies looking to provide a streamlined experience should consider the following:

  • Strategic alignment: Seek a vendor whose vision aligns with your business goals and who can provide strategic guidance to navigate the payments ecosystem.
  • Customer-centric approach: Choose a vendor that prioritizes the customer experience, ensuring that every interaction is a positive reflection of your brand.
  • Compliant and secure: Ensure that the vendor has a strong track record of compliance, security and platform stability, safeguarding your business and your customers’ data.

 

Great payment vendors are more than just service providers; they’re catalysts for transformation. By focusing on innovation, quality, and strategic partnership, businesses can unlock the full potential of their payment solutions and thrive in the dynamic world of finance.

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.