Category: Industry

ACH Fraud

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The Automated Clearing House (ACH) is a network that clears funds moving from one bank account to another. When a payer transfers money via debit, credit card or EFT, the funds await authorization. Once clear, the ACH system moves the funds into the payee’s account.

The National Automated Clearinghouse Association (Nacha) oversees this network in the United States. Nacha employs rigorous security measures to guard users’ accounts. Outside its security nexus, bad actors who gain access to pertinent information can commit ACH fraud. This type of fraud is relatively common—a criminal only needs access to a few details to open the door to several opportunities for theft. Preventing access at the start is better than remedying a security breach.

What Is ACH Fraud?

ACH fraud occurs when criminals use account and routing numbers to impersonate victims and manipulate the movement of funds. Criminals can obtain routing numbers at the bottom of their targets’ checks. They might use this information to impersonate someone and steal funds through various methods:

  • Internal fraud: When an employee of a company uses legitimate credentials to make unauthorized ACH withdrawals and payments, the fraud is considered internal.
  • ACH kiting: Kiting occurs when fraudsters move funds from one company account or financial institution to another.
  • Fraudulent authorized push payments (APPs): When a customer attempts to pay you, criminals trick them into making ACH transactions prompted by scams, and the funds never reach your account.
  • Unauthorized access to personal accounts: ACH transactions render you and your clients vulnerable to unauthorized persons having access to sensitive accounts.
  • Unauthorized ACH withdrawals: Merchants and clients risk having funds withdrawn from bank accounts without authorization.

Within the ACH network, there are several steps between a payer sending funds to an account and the payee receiving the funds. This process is not impenetrable to criminals, who are using more sophisticated means of defrauding unsuspecting users. Traditional ACH systems lack proper security mechanisms, leaving you and your end users vulnerable.

ACH Fraud and Concerns

Concern is mounting over the rate at which ACH fraud is increasing, highlighting the need for more vigorous security methods. Criminals only need two data sets to successfully steal money through the ACH network—a bank account number and a bank routing number. Businesses and enterprises accepting payments need to address increasing ACH fraud to protect themselves and end users.

ACH fraud can occur from external means or inside a company. Employees don’t need to know complicated data sets or complex codes to hack a business or another person. Staff are also at risk of social engineering and phishing attacks.

How ACH Fraud Can Affect Your Business

A U.S. District Court recently found a credit union liable for not acting on several suspicious ACH transactions. If you’re a business accepting payments or overseeing financial transactions, it’s critical to be proactive in preventing ACH fraud. Nacha and the Federal Reserve Regulation E have policies that state the consumer is not responsible for ACH fraud unless they fail to report an incident within 60 days.

Financial institutions can be held liable, with the bank returning the funds to the consumer and claiming them back from the original enterprise. Successful fraud protection can keep your end users safe and protect you from the costs of fraudulent ACH activity.

CSG Forte’s Approach to ACH Fraud Prevention

CSG Forte has extensive experience in ACH fraud prevention and detection, and our robust payment platform provides reliable, secure solutions. For your convenience and safety, we adapt to the evolving digital economy to provide a unified payment solution with built-in fraud-prevention protocols using the latest technology.

Furthering your peace of mind that your funds are handled safely, we’ve partnered with Nacha, the body overseeing all ACH transactions. You’ll also benefit from:

  • Advanced security protocols: Your data stays protected with our advanced security solutions, such as Forte.js and compliance with major card brands.
  • Real-time alerts: You can remain in control of your funds by monitoring transactions in real time and receiving alerts for every activity connected to your funds.
  • Comprehensive evaluation: We thoroughly evaluate merchant accounts to prevent delays down the line and help you accept payments seamlessly. Evaluation helps ensure your payment system will have adequate ACH fraud protection, mitigating loss in the long run.

We bring you reliable, safe payment processing solutions. Our approach to fraud prevention is comprehensive, as we’ve partnered with several leading software providers to prevent money laundering and several types of sophisticated financial crimes.

Key Features of Our ACH Fraud Prevention

To secure every payment and keep your data safe, CSG Forte develops every software platform and application tool with security as the cornerstone. The key features of our ACH fraud prevention include:

  • Multifactor authentication: For your safety and privacy, we protect your data with layers of security.
  • Software to detect behavioral anomalies: You can have peace of mind knowing our behavioral analytics software detects discrepancies from your usual activity and alerts you in case of an anomaly.
  • End-to-end encryption: We use end-to-end encryption technology to safeguard all data and prevent your information from leaking to a third party.
  • Tokenization: We limit the exposure of your sensitive information through tokenization, ensuring your data remains hidden in the system throughout the payment process.

We are committed to providing you with rigorous, up-to-date security systems for your enterprise, as evidenced by our compliance with several security programs. You can rest assured your funds are protected during every transaction.

Protect Against ACH Fraud With CSG Forte

ACH is a vital payment method to offer your customers. However, its attainability makes it vulnerable to breaches. Protecting your funds and your customers takes a proactive stance. Take action by integrating an advanced, robust platform from CSG Forte.

To take the next steps with our secure platform, fill out the online form and a payment expert will be in touch. You can also contact our team if you have any questions before you get started.

Layering Login Security: The Power of Multifactor Authentication

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It used to be that passwords were enough to protect your accounts. Those days are gone, and you can blame the ever-growing sophistication of cybercriminals. Organizations now need an extra layer of defense against unauthorized access and fraud. That’s where multifactor authentication comes in.

It’s a good idea to require multifactor authentication in many of the systems your organization uses every day—especially critical systems like payments operations. Read on to learn what it is, how it works and why it matters.

What is multifactor authentication?

Multifactor authentication (MFA) is a security measure that requires users to provide two or more pieces of evidence to verify their identity before they can access their account or perform a transaction. Single-factor authentication methods often rely on the traditional username-plus-password combination. MFA goes further and requires additional factors—often something the user knows (e.g., the answer to a security question), something they have (e.g., a smartphone) or something they are (e.g., biometric data like a fingerprint).

How does MFA work in payment solutions?

Payment solutions can apply MFA in various ways depending on the level of security and convenience they offer users. Common examples of MFA in payment solutions include:

  • One-time password (OTP): The user gets a code via text, email or an automated phone call, and they have to enter it along with their username and password to access their account or perform a transaction. The code expires after a short period of time and can be used only once.
  • Push notification: The user receives a notification on their smartphone or a similar device though a secure app that’s linked to their account. With that device, they have to either approve or decline the transaction or account access.
  • Biometric authentication: The user must have their fingerprint, face or iris scanned. This biometric data is usually stored on the user’s device or on a secure server, and it’s matched with the user’s account.

When might payment solutions require MFA? Those scenarios can include when you or other users in your organization log in to their accounts, add a new payment method or change settings. MFA can also be complemented with other security features such as encryption, tokenization or fraud detection to create a more robust risk management practice.

Why is multifactor authentication critical for payments operations security?

Payment fraud incidents are on the rise, increasing 88% since 2021, according to PYMNTS Intelligence research. It’s making organizations and consumers more wary about how payment accounts data is kept (the same study found that 30% of consumers don’t trust having their personal information stored on a connected platform).

Clearly, bolstering security to the systems that house consumers’ payment account data is a priority for any organization. Here’s how MFA in payments operations supports that:

  1. Better Protection: MFA makes it harder for hackers or fraudsters to access your customers’ data, even if they have your username and password. It adds an extra layer of security that deters or delays attackers, giving your organization more time to detect and respond to the breach.
  2. Fraud Risk Mitigation: MFA can decrease the likelihood of fraudulent transactions when the additional authentication requirements thwart bad actors.
  3. Brand Reputation Preservation: A data breach resulting in compromised payment accounts is a major blow to an organization’s reputation that erodes customer trust. Implementing MFA shows you’re committed to keeping customers’ information secure, and it helps safeguard your organization’s integrity.
  4. Satisfying Security Standards: MFA complies with the latest security standards and regulations, such as the Payment Card Industry Data Security Standard (PCI DSS) or the Payment Services Directive 2 (PSD2). MFA helps you meet the requirements and expectations of your customers, partners and regulators, not to mention help you avoid penalties or fines.

The new standard in payments operations security

MFA is no longer just a security best practice—it’s an expectation. A growing share of SaaS platform users consider MFA a must-have capability of the SaaS platforms they use, regardless of segment or industry. In payments operations, it can make a big difference in safeguarding payment accounts and protecting your organization from the potentially devastating consequences of data breaches and payment fraud.

This is part of what’s known as the Zero Trust strategy for information security programs, based on the principle of ”never trust, always verify.” It’s aligned with the latest industry standards, such as PCI DSS version 4.0. And it’s part of CSG Forte’s commitment to the rigorous safeguarding and protection of all customer data.

Want to learn more about how CSG Forte incorporates MFA into its solutions? Just ask us.

Empowering SMBs With Embedded Financing

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Small- and medium-sized businesses (SMBs) play a crucial role in driving our economy through innovation, job creation and the contributions they make to their local communities. But SMBs can face obstacles when trying to access working capital through traditional financing sources, including high rejection rates, varying annual percentage rates (APRs) and lengthy application processes.

Enter: embedded financing, which has emerged as a powerful alternative for SMBs that may apply for capital through traditional lending methods. Embedded financing offers SMBs a streamlined approach to accessing capital by allowing them to bypass banks and other traditional lenders and instead receive needed funds through their software vendors. This fast and flexible financing option offers SMBs fair pricing on quickly available financing terms that can be seamlessly integrated into their existing business solutions.

Many SMBs are taking advantage of the ease of using embedded financing, as industry growth continues to rise. Current estimates suggest a 125% year-over-year increase, reaching $500 billion in annual originations by 2030.

An AI-Driven Solution Tailored for ISV Partners and Their Merchants

Traditional small business loans can be expensive, carrying APRs as high as 99%. But businesses may find significant savings via the reduced rates embedded finance programs offer. How? Embedded finance programs leverage private datasets and AI automation when assessing risk, facilitating more accurate and faster underwriting. Among other advantages, this innovative underwriting method cuts customer acquisition costs.

By leveraging technology, embedded finance can revolutionize the underwriting process and provide fair, affordable financing options for SMBs. The lower rates not only benefit merchants, but also foster a stronger sense of loyalty within the Independent Software Vendor’s (ISV) merchant base.

The power of artificial intelligence (AI) is at the forefront of most of today’s innovative technology, including embedded financing. AI-driven credit underwriting—which is fueled by rich, embedded datasets—offers a level of sophistication that’s unmatched.

Embedded AI lending leader Lendica and has partnered with CSG Forte to introduce a unique credit solution for SMBs: the iBranch. This innovative embedded financing offering allows merchants to connect to financing offers through their software vendors, opening a new avenue for SMBs to conveniently access credit for necessary capital investments in their business. CSG Forte and Lendica are extending this solution to ISV partners and their end-merchants.

Benefits Beyond Basics

The advantages of embedded financing extend beyond just the SMBs. ISV partners stand to gain significantly from this innovative financing model. By participating in embedded financing programs, ISVs create an additional revenue stream for their business that is often operations-free (meaning they don’t need to handle the customer support or marketing internally and can leverage an embedded financing partner). Moreover, the enhanced merchant loyalty resulting from fair and affordable financing options strengthens the bond between ISVs and their end-users.

Embedded financing also has the flexibility to cater to a diverse range of ISV partners and their merchants, spanning various industries such as field services and property management. For example, property management merchants can leverage this user-friendly solution to access capital for building repairs, procure necessary supplies, or invest in professional services to promote their business. Quick access to capital empowers merchants and fosters an environment that’s conducive to future growth and prosperity.

Game-Changing Potential

Embedded financing is proving to be a game-changing solution for ISVs and their merchants, providing fast, flexible and competitive financing options. This streamlined approach addresses some of the pain points of traditional lending, offering competitive rates and an enhanced end-user experience. The growth trajectory of embedded business financing suggests a transformative future for SMBs, fostering an ecosystem where businesses can thrive and achieve their full potential.

As we move to the future, the era of embedded financing is redefining the landscape of SMB financing, unlocking new possibilities and opportunities for growth.

Thanks to the recently established strategic partnership between CSG Forte and Lendica, an embedded AI-lending company, your software organization can provide merchants with quick access to capital, removing time delays and other barriers SMBs often encounter. Contact our team to start offering your merchants a competitive, embedded financing offering in as little as two weeks.

P2PE vs. E2EE: What’s the Best Payment Security Option for Governments?

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If end-to-end encryption (E2EE) and point-to-point encryption (P2PE) sound like they could be the same thing, you’re not wrong. Technically speaking, P2PE is a specific type of E2EE, and the objective in both uses is to secure cardholder data from the time it’s captured until it reaches its intended destination.

However, only one of these methods offers significant time savings and cost benefits to the government agencies that use them. Read on to understand the differences between E2EE and P2PE and why choosing P2PE could be in your department’s best interest.

 

What Is P2PE?

As the ongoing threat of data breaches continues to menace government agencies of all sizes, securing cardholder data remains a top priority. In recent years, P2PE has become the gold standard for credit card payment security compliance.

Here’s why: Payment card industry (PCI)-validated P2PE is a set of standards defined by the PCI Security Standards Council (SSC) that outlines a comprehensive set of best practices spanning the device supply chain, encryption key loading, configuration, encryption and application security.

The P2PE process creates a secure connection between devices, or components within devices, which prevents possible sensitive data from being exposed at any point while moving across a network. It effectively removes cardholder data from an agency’s environment, providing better protection for the cardholder.

 

How Does P2PE Work?

P2PE encrypts cardholder data immediately upon receiving a card payment. It sends this encrypted code directly from the payment terminal to the payment processing system, where the information gets decrypted using a secure key.

Since the decryption takes place entirely in the payment processor, the government entity never sees any of the cardholder’s information. If hackers manage to intercept the data while it’s in transit, they will not be able to read the data because only the processor possesses the key—there’s no chance someone can steal the key from the government agency or any other transactional party.

 

PCI P2PE Compliance Requirements

P2PE reduces the likelihood of PCI compliance breaches by directly connecting the payment terminal to the processing system—and correspondingly drops the number of self-assessment questionnaire questions from over 300 to around 30. This function means your department can raise the bar on security without also increasing the compliance audit burden.

Some other key compliance requirements include:

  • The data must be encrypted at the payment terminal.
  • The payment terminal may only use P2PE-approved applications.
  • The merchant must conduct annual inventory checks on payment terminals.
  • The merchant must install cameras with a clear view of the terminal.

Ultimately, these requirements are fairly easy for most agencies to manage, leaving more time and scarce resources to spend on the purpose and passion at the forefront of your day-to-day dealings rather than the processes behind each transaction.

 

The Benefits of P2PE With CSG Forte Protect

CSG Forte Protect is a PCI-validated P2PE solution securing the V400C terminal for in-person payments. CSG Forte Protect helps governments:

  • Remove liability issues: Forte Protect merges processes, applications and payment devices to securely encrypt and protect data during transit from the POI terminal/device or POS system
  • Protect cardholder data: Our solution has three parts—validated hardware, validated software and validated solution providers to cover payment terminals, terminal application, deployment, key management and decryption environments.
  • Save time and money: With a minimal per-transaction cost, Forte Protect saves your agency PCI-related costs by reducing PCI scope. This is because the number of questions from the self-assessment questionnaire (SAQ) drops from SAQ D (329 questions) to SAQ P2P3 (33 questions).
  • Fully integrate existing payment channels: Supported card input methods include tap, dip, swipe, keyed, Apple Pay, Samsung Pay and Google Pay. Your constituents’ payment experience will be seamless without you lifting a finger!

We put data security at the core of all our payment solutions, so you can rely on Forte Protect to keep constituent data safe through every payment—every time. In addition to meeting PCI standards, we’re certified for compliance with ISO 27001:2013, SSAE SOC 1 and the Health Insurance Portability and Accountability Act (HIPAA). Whatever your agency needs, we can help you protect constituents from data breaches.

 

What Is E2EE?

Many government transactions rely on E2EE, a process that involves an indirect link between the payment terminal and processing network. During this operation, the processor or a third party is expected to encrypt cardholder data (CHD) during transit.

Unfortunately, the indirect link means card present transactions—where the user swipes, dips or taps their card—are a constant area of concern. Preventing fraud at the terminal isn’t just a matter of checking who is presenting the card. You also must ensure the payment terminals themselves are secure. By intercepting POS devices or using insiders, malware loaded to a device can scrape and transfer cardholder data available in its memory.

That’s why rather than finding new ways to protect cardholder data, businesses are looking for ways to eliminate cardholder data from their environments.

 

E2EE and PCI Compliance

Some agencies using E2EE claim that using doing so makes adhering to PCI guidelines easier because it encrypts data throughout the entire process, but this claim isn’t entirely the case.

While this method is compliant with PCI guidance, E2EE requires intensive documentation and additional ongoing costs associated with PCI compliance. Agencies often hold the encryption keys, so merchants relying on E2EE will typically need to complete an annual PCI DSS SAQ with over 300 questions.

Even though local and regional governments are used to wearing many hats, assuming responsibility for PCI compliance may be more than many can handle. If government agencies choose to have someone else manage PCI compliance on their behalf, like processors or outside consultants, they’ll also incur the added expense of outside help.

 

What’s the Difference Between P2PE and E2EE?

While they are similar in nature, some of the most significant differences between P2PE and E2EE include:

  • Security rules: P2PE and E2EE require different security checks on and around the payment terminal. For example, P2PE requires merchants to perform annual terminal inventory checks to ensure everything works properly.
  • Control: Because the scope for PCI compliance is much smaller with P2PE, merchants have greater control over their ability to adhere to the standard. E2EE, on the other hand, contains more endpoints, making compliance more complicated.
  • Liability: P2PE providers take complete liability for data breaches because they hold the keys. With E2EE, though, the merchant has control over decryption keys and can be held liable for stolen cardholder data.

Ultimately, these differences mean the best choice for most government agencies that are planning to accept credit card payments is P2PE. It makes compliance more manageable and keeps cardholder data safer than E2EE—and it’s entirely possible with a reliable provider like CSG Forte. If you want to improve your payment processing technology, consider using our solutions to secure your card transactions.

 

Choose P2PE Payment Solutions from CSG Forte

The numerous controls and security implemented across this entire value chain make P2PE an extremely secure encryption method—but also a high bar for providers to clear. Only a select few offer PCI-validated P2PE today, and we’re proud to be one of those few.

At CSG Forte, we know securing a stable and safe government solution can relieve the security and compliance pressures from you and your agency employees. For that reason, CSG Forte Protect was created with you in mind to give you peace of mind.

We know you have more pressing issues to worry about than transactions and payments operations. That’s why our team at CSG Forte created safe and secure payment processing solutions. Learn more about CSG Forte’s secure in-person payments processing solutions, or contact us to get started.

Not Ready for Rising Card Fees? Try These 4 Payment Alternatives

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Credit cards emerged from the pandemic stronger than ever. After bearing the brunt of decreased recreational spending in 2020, the industry is riding the wave of ecommerce growth to top an unprecedented $500 billion in online credit card usage. Resurgent travel spending, higher wages and generous rewards programs all bode well for credit card payments.

But as card spending stabilizes among consumers, their issuers must contend with the broader impact of economic downturn.

Credit Card Payments Under Pressure

The country is seeing record numbers of credit card debt and growing delinquency rates. Economists at the Federal Reserve Bank of New York report that credit cards are the most prevalent form of household debt and expect this trend to continue—particularly with student loan payments resuming.

Talk of congressional action to lower swipe fees and rumors swirling around rising interchange fees also loom large for merchants that rely on credit card payments. With so much uncertainty, how can businesses protect their bottom line?

Bolster Your Business Growth With More Ways to Pay

Prepare for volatility in the credit card space by diversifying your payment methods. Consider these alternatives to safeguard your cash flow and generate revenue in any economic conditions.

4 Alternative Payment Methods

1. ACH

Automated clearing house (ACH) payments are a strong solution for businesses seeking reliability. This payment method allows merchants to draw funds directly from the customer’s bank account, limiting risk and excess costs.

ACH processing expenses are generally low compared to other forms of payment. Unlike credit cards, which are subject to fluctuating fees, ACH doesn’t require merchants to make authorization requests to credit card networks or issuing banks. This means that not only does using ACH save businesses money—it also insulates them from rising interchange fees if Visa or Mastercard choose to schedule increases.

ACH is also a more secure payment option. Credit card fraud is on the rise, with global losses projected to surpass $43 billion in the next five years. What does that mean for merchants? More chargebacks, less revenue and greater overall risk.

ACH payments also come equipped with security features that protect businesses from fraud. With end-to-end encryption and tokenization, sensitive payment data is disguised during transmission. It’s one of the safest payment methods available to businesses today.

2. Same-day ACH

Businesses can further optimize their electronic payments by implementing same-day ACH transfers. This method carries the same benefits as standard ACH payments, but with the added promise of receiving funds within a single day.

Payment processors traditionally could expect to see direct transfers reach their accounts in around four business days. But those that partner with a same-day ACH provider are guaranteed usable funds much sooner, provided they initiate the transaction by the designated cutoff time.

By bypassing processing delays, businesses enjoy the following advantages:

  • Faster payments, with lower fees. The speed of same-day ACH processing is comparable to credit cards. But with lower costs involved, the former provides merchants the best elements of both.
  • Streamlined cash flow. Automated transfers and reduced cycling times simplify delivery and allow for better control of cash flow.
  • Optimized customer experience. When you enable customers to pay their bills closer to the due date, both sides benefit. Same-day ACH processing helps last-minute payers avoid penalties, while faster crediting is applied to late payments.
  • Expedited payroll disbursement. Same-day ACH can also be used to pay employees via direct deposit. Faster issuance reduces administrative burdens by providing quick resolution of late payments or emergency distribution.

3. RTP

Real-time payments (RTP) can also quickly provide your business with cash flow. Much like ACH, this method supports quick electronic transfers between banks. But the similarities stop there.

RTP transactions are instantaneous—faster even than same-day ACH. These payments are initiated, cleared and settled with virtually zero perceptible delay. The unrivaled speed of RTP is a contributing factor to its international appeal: one 2020 survey found that consumers across six different markets consider real-time payments at least as important as internet access.

Speed isn’t RTP’s only convenient feature. Year-round availability is another unique benefit. Unlike ACH, real-time payments are also available on weekends, holidays and after business hours. Because it’s processed by The Clearing House rather than banks, RTP isn’t subject to the same limitations and enables 24/7/365 payments.

However, he RTP system isn’t always the answer. Transactions are capped at $1 million, and only credit payments are supported. Its network is also smaller than that of ACH—not every bank covers RTP.

But RTP is gaining popularity, and as it does, these drawbacks are expected to shrink. The U.S. Federal Reserve recently rolled out an instant payments service of its own in FedNow. As banks push for faster fund processing, the government’s network will offer them additional high-speed coverage options, making RTP more broadly available.

By stimulating competition with this move, expect to see increased adoption of real-time payments in the U.S.

4. Alternative Methods of Payment

Non-traditional payments are also available to businesses seeking credit card alternatives. To capitalize on these options, connect your bank account to an e-wallet that is compatible with popular payment methods. These might include:

  • PayPal
  • Physical or digital gift cards
  • Loyalty points
  • Apple Pay
  • Google Pay
  • Direct carrier billing

Offering customers the capability to use their preferred method encourages on-time payments, increased revenue and a seamless CX.

Get A Consult: Find Your Payments Fit

Payment methods should be built for your business—not the other way around. Connect with CSG Forte to get expert advice on which payment processing options will work best for you. Get started.

Tips to Reduce Late Payments by Engaging Payers

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Late payments are on the rise, and they can weigh down your organization’s growth if they go unaddressed.

Auto loan and credit card delinquencies have bounced back to their pre-COVID rates, and late payments on consumer loans aren’t far behind. With these indicators, merchants in other industries might be right to wonder if they’ll see more missed or late payments—assuming they haven’t already.

Organizations are well aware how late payments can disrupt cash flow. As they add up, they can limit the ability to make the investments needed for growth, from purchasing new equipment, to hiring talent, to ordering inventory. Then there’s the cost of collecting late payments: sending out notices, attempting to call customers, engaging collection agencies, and so on.

Consumers often miss payments due to a lack of funds, but a large chunk of late payments are highly preventable. Among consumers who missed a payment in the previous six months, nearly half said either forgetting about the bill or mixing up the due date were factors, according to a recent survey.

So what can organizations do to help customers pay on time? By keeping them engaged with these approaches.

Make the payment experience as easy as possible

Many late payments result from transaction abandonment, which is a usually fixable problem in the customer’s payment journey. Sometimes the abandonment is accidental: think of how easy it is to get distracted in the process of paying a bill online or over the phone if it requires multiple steps. Other transaction abandonment is deliberate: perhaps the customer became frustrated to learn that they can’t make their payment online, and they put off the task for later.

To reduce transaction abandonment—accidental or otherwise—it’s important to make the payment experience as simple as possible.

Accept multiple payment methods.

You want to ensure most of your customers can use the payment method they most prefer, whether that’s credit/debit card, ACH, digital wallets, and yes, paper checks (55% of U.S. consumers wrote checks in 2022).

Offer auto-pay.

Automating regular payments is a win-win for you and your customers. Customers get to put the recurring payment out of mind, and your organization sees fewer late or declined payments. Offering and encouraging auto-pay makes a huge difference. Between April and July 2020, renters failed to make timely rent payments approximately 22% of the time. However, renters who used Rentec’s recurring payment system, powered by CSG Forte, only made late payments 1% of the time.

Allow payments in installments.

Making the payment experience easier can also involve offering a payment plan if your organization can provide that flexibility. Accepting partial or installment payments can be preferable to delinquent payments, and offering installments keeps the customer engaged. The key here is to use a payment solution that enables customers to set up their own alternative payment arrangements easily, without having to call into your call center. The payment terms, installment amounts and due dates also need to be clearly communicated to the customer through the user interface.

Send payment reminders on the customer’s preferred communication channels

The modern consumer has plenty of notifications and due dates competing for their attention. It’s easy for even your most organized customers to forget a payment unless they receive regular reminders. But reminders only matter if customers receive them on communication channels they use. Make sure you can send these automated messages by multiple methods, including email, text and outbound interactive voice response (IVR).

Also consider payment reminders that can integrate with customers’ calendar applications, increasing their visibility as part of your customer’s recurring to-dos. If you can enable seamless payments through your reminder communications, such as offering text to pay, then you’ve not only made it easier for customers to remember their bill, but also pay it in seconds.

CSG Forte Engage, a payer engagement platform, can help simplify your customers’ payment journey in these ways and more, enabling you to minimize late payments and protect your bottom line. Learn more about CSG Forte Engage and start increasing on-time payments today.

CSG Forte Engage Enables Customers to Pay Bills the Way They Want

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FORT WORTH, TX, Sept. 12, CSG Forte, a CSG® (NASDAQ: CSGS) company and a leader in complete and customizable digital payments, today launched CSG Forte Engage. A multi-channel, no-code payment solution, CSG Forte Engage puts the power into the hands of the customer to pay when they want, how they want. With CSG Forte Engage, organizations can leverage NanoSite technology to create customized, secure statements and send them to customers for payment via SMS, email, 2-way interactive voice response (IVR) or the contact center. By making it easy for organizations to send branded and personalized statements, they can securely accept payment in real time, remove their exposure to sensitive data and modernize the customer experience. Recently, CSG Forte Engage helped one company reduce uncollected payments by 85% and another to increase customer engagement by 660% leading to $8M in incremental revenue.

“The payments landscape and payer behavior are quickly changing, and customers want more flexibility in the way they pay,” said Jeff Kump, President, CSG Forte. “CSG Forte Engage offers flexibility in every form to elevate both the simplicity of the payment journey and overall customer experience. By empowering customers to pay how they want, this solution will forge the path for the next generation of secure and simple payments processing.”

With CSG Forte Engage, organizations can:

  • Increase customer satisfaction and successful payment completion by providing simple payment journeys that are configured for each customer. Multiple payment options give every customer the choice on how to be communicated with and how to pay.
  • Meet customers where they are by allowing them to securely switch between channels throughout the journey from text, email, inbound or outbound IVR or live agent.
  • Maximize revenue and see immediate ROI with a no-code, quick integration that modernizes the payer experience while leveraging existing payment processing forms including ACH.
  • Have peace of mind with automated, PCI-compliant payment processes that safeguard customer data and prevent fraud.

“In order to meet consumer expectations and create positive payment experiences, organizations need to be prepared to meet consumers where they are and give them the ability to pay in whatever ways they prefer,” said Daniel Keyes, Senior Analyst at Javelin Strategy & Research. “Organizations that can offer a variety of payment methods across multiple channels, while minimizing friction for consumers no matter how they’re paying, will be able to complete more payments and drive customer satisfaction.”

CSG Forte was recently named Best API Set in The Strawhecker Group’s annual Best of Breed Awards. With the launch of CSG Forte Engage, CSG continues to be a leader in payment technology, empowering organizations to be future-forward and customer-obsessed. For more information about CSG Forte Engage, view this short video or visit our website.

4 Best Practices for a Better Payment Experience

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Providing a smooth experience is key if you want to make on-time payments easy for your customers. But meeting their expectations can be easier said than done.

The payment experience is often reported as a source of friction for customers. According to a survey of 400 billing and collections executives, 91% of customers cited the inconvenience of bill pay as a pain point. And 34% received customer feedback that there isn’t enough choice in payment methods.

Fortunately, there are simple solutions to facilitate a better payment experience. Follow these four best practices to deliver a secure and convenient digital payment experience that cuts down friction and meets customer expectations.

4 best practices to improve the customer payment experience

1. Seek seamless integration of payment methods

Simply making a multitude of payment options available to your customers won’t create a convenient experience. You need to integrate those channels if you want to encourage prompt payment.

When the payment process is comprised of disparate solutions, it creates friction for customers who are forced to leapfrog from one to another. A customer receiving an email payment reminder doesn’t want to get on the phone with a call center agent just to provide their credit card information. Imagine instead the convenience of being directed to an online payment platform directly within the reminder email.

By integrating your payment methods and eliminating cumbersome payment journeys, you’ll encourage prompt and repeatable payments.

2. Prioritize CX to limit late payments

Providing a positive customer experience doesn’t stop at the point of purchase. The payment portal is a brand touchpoint that deserves equal consideration.

For customers, the hassle of navigating a poorly designed platform can deter on-time payments. According to a 2022 survey of more than 1,500 bill payers, 14% of respondents prioritize convenience. Millennials go even further, with 23% citing payment ease as a reason to pay some bills before others.

A business that offers a user-friendly payment experience may encourage customers to first pay their bills before tackling—or even disregarding—those that involve more convoluted processes.

3. Gain trust with a secure payment platform

Many consumers are concerned about security, for good reason. Credit card fraud is widespread, and card-not-present fraud is expected to account for 74% of all credit card fraud losses by 2024. Up to 52% of U.S. bill payers rank security as a top feature in the digital payment process.

Here’s the takeaway: if customers don’t trust your payment system, they won’t use it.

It’s critical to demonstrate that cardholder data is protected on your payment platform. Follow these strategies to keep your customers secure:

  • Use payment IVR systems to securely take payments
    Asking customers to read out their credit card information to a call center agent increases the risk of fraud. Leverage Interactive Voice Response (IVR) technology to add a level of security.

    • Inbound IVR allows customers to call in and manually enter their credit card information via keypad, reducing the risk that someone will overhear the details and jot them down.
    • Outbound IVR lets customers receive a scheduled payment call at their convenience and then enter their credit card details during the call.
  • Keep call center payments secure
    Use a payment platform that makes it simple for call center agents to quickly create custom invoices and send customers a link to securely complete transactions. Customers can pay directly without sharing their account data with anyone, all while removing the organization’s exposure to sensitive payment data.
  • Choose a payment platform that offers Payment Card Industry (PCI)-compliant processing
    PCI regulations change frequently, making it challenging to keep up with complex security requirements. You can spare your business the risk of inadvertent regulatory discrepancies by using a payment platform with built-in PCI compliance. Trusting your payment platform to securely store sensitive customer data lets you stay focused on growing your business.

4. Make it easy for customers to read your reminders

A quick way to increase the odds of late payment is sending a customer reminders on a communication channel they rarely use. Leverage multi-channel communications for reminders to make sure you’re reaching them where they are most likely to respond.

Relying on email won’t always get your message across. Short Message Service (SMS) is gaining popularity. A Statista survey found that U.S. Internet users opened and read 42% of commercial text messages, as opposed to 32% sent by email.

The CSG Forte Payer Engagement Platform allows customers to pay when and how they want

CSG Forte’s Payer Engagement Platform is a revolutionary payments solution that meets your customers where they are. It enables any-time, any-way payment completion on the channel of their choice. Our low-code solution manages invoice creation, payment processing, and payment notifications—all on one secure platform.

Contact us to learn how the CSG Payer Engagement Platform can simplify your customer’s bill payments, improve their experience, reduce fraud exposure and encourage on-time payments.

Invite customers to receive payment reminders, confirmations and late notices on their preferred channels. Then implement a platform with calendar integrations to easily send personalized links to a custom invoice where you know they’ll see it.

CSG Forte Earns Best API Set by The Strawhecker Group in 2023 Best of Breed API Awards

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ALLEN, TX, July 13, 2023 – CSG Forte, a CSG® (NASDAQ: CSGS) company and the leader in complete and customizable digital payments, was recognized by The Strawhecker Group (TSG) as the Best API Set in the 2023 Best of Breed API Awards. The awards are based on TSG’s Global Experience Monitoring (GEM) platform, which ranks the overall API experience of payment gateways across functionality, documentation and integration and development. CSG Forte was highlighted for its user-friendly experience for developers and additionally named a runner-up for Overall API Assessment, API Set: Specifications and Developer Roadmap.

“To attract, retain and forge strong relationships with merchants, gateway and payment technology providers like CSG Forte rely on technology, open-source platforms and the development communities of the future to continuously improve our offerings,” said Jeff Kump, President, CSG Forte. “Our unwavering commitment to adaptability, innovation and investment in our platform allows us to deliver unparalleled payment experiences to our customers. This recognition is a testament to the creative minds and dedication of the entire CSG Forte team, and we are honored to be named a leader by The Strawhecker Group for the third year in a row.”

“We are excited to recognize CSG Forte for its exceptional API Set, which surpassed the average API Set total score by over 13 points,” said Mike Strawhecker, President, TSG. “Our annual awards give payment platforms the data to make impactful adjustments, and the CSG Forte team consistently uses our GEM Suite to improve and set new standards for the industry.”

CSG Forte delivers a single, end-to-end cloud-based payments platform that helps merchants grow their business quickly, scale payments smarter and mitigate fraud risks. With CSG Forte’s award-winning technology, organizations can modernize and simplify how customers pay bills, drive more on-time payments and improve customer satisfaction with a low-code, single unified digital platform. With experience in payment processing across ACH and card payments, acceptance, authorization and management, CSG Forte handles tens of billions of dollars in payments for nearly 100,000 merchants annually.

For more information about CSG Forte, please visit: www.forte.net.

CSG Forte Team

CSG Forte Team

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4 Digital Payments Trends Making Businesses Future Ready in 2023

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This year, we’re looking at a different world in digital payments. Businesses are facing down recession fears and tighter margins. Consumer spending habits are shifting as they contend with inflation.

What hasn’t changed? The payments experience is still key to maintaining healthy cashflow and loyal customers. And innovation will still pay off down the road in cost-reducing efficiency and better customer experience (CX). It’s just that businesses must adjust their priorities to navigate 2023’s economic headwinds.

CSG Forte President Jeff Kump, and Sukanya Madhavan, VP of Product Management, offer a glimpse of where merchants will make strides in the payment experience, from digital wallets to ACH to security.

Here’s what they see organizations doing to prepare not just for 2023, but for the years ahead in digital payments.

1. Digital Payments Will Help Make Businesses Metaverse-Ready

Cash is phasing out as consumers embrace more digital avenues of retail shopping, like buy online, pick up in store (BOPIS). Even as the pandemic waned, U.S. coin shortages persisted because consumers weren’t inclined to use them to buy things (which stalled circulation).

Trending up are digital wallets, which have become more commonly used than even credit cards, according to a global survey. It’s not just because of consumer preferences—businesses are encouraging digital payment options, too. They’re already trying to streamline and digitize more processes, and that includes the payments they accept.

Where is this all headed? Possibly to the ultimate digital marketplace—i.e., the metaverse—which will eschew cash or plastic entirely. Businesses will need to accept digital wallet payments if and when they participate in those immersive experiences. Even if they join in metaverse commerce after 2023, this year they’ll lay the foundation for it on the payments side.

2. Older Generation Consumers Will Ease into Next-Generation Payments

Spoiling the grandkids will look different in a cashless future. Picture Grandma slipping them a couple bucks on the sly using a peer-to-peer payment app instead of dollar bills.

But they’re not there yet. Baby boomers were the least likely generation to have tried a new payment method in the past year (only 29% compared with 79% of Gen Z). While we’re in this transition towards digital payment dominance, businesses need to accommodate consumers who remain reluctant (or unable) to pay online.

To keep serving those customers, businesses won’t shift to fully paperless and online payments just yet. In the meantime, we’ll see them encourage more customers toward digital adoption while continuing to offer traditional payment methods in the name of inclusion and accessibility. As late adopters receive a gentle education on newer payment methods, we’ll see the generation gap of digital payment adoption begin to close.

3. Organizations Will Offer Embedded Payments Everywhere

There’s no denying the connection between payment simplicity and revenue: the easier you make it for customers to buy, the easier it is to make sales. This year, we’ll see businesses speed up buying processes by using integrated payments to remove speed bumps.

In eCommerce, they’ll eliminate friction by embedding pay tools more smoothly in apps and websites. One example is Instagram, which links to your bank so you can purchase an advertised product straight from your feed with a single swipe.

Friction-free, integrated payments will transform in-person shopping, too. Seeing more consumers return to physical locations, retailers are working to streamline the brick-and-mortar buying experience. The Kroger grocery chain is testing shopping carts that track the items shoppers want to buy, allowing them to skip checkout entirely. Amazon Go stores, which already let customers purchase without checking out, continue to expand to more locations.

Whether we’re online or in-person, we’ll continue seeing businesses remove hurdles in the buying process we once thought were essential, simplifying the path to “Sold!”

4. Authentication Tools Will Help Merchants Raise Their Game Against Fraud

ACH payments have increased in volume by over 50% within a decade. The downside of ACH’s growth is that more transactions create more opportunities for fraudsters using the payment method. Businesses have recognized the heightened security risk of their transactions and are poised to combat it. According to “The State of Retail Payments in 2022” from Forrester Research, Inc., September 2022, “improving security (fraud, management encryption) jumped to the top of the list of online initiatives, with a significant 42% of retailers including it on their list of priorities.”

In 2023, more businesses will act on their anti-fraud priorities by using stronger payment security solutions to process ACH transactions. In their efforts to reduce risk, they’ll leverage authentication to verify account status and ownership in a seamless process that keeps payments easy for customers. After all, the payment experiences of the future aren’t just about keeping payments simple, but also safe.

Learn more about how CSG Forte solutions can help your business prepare for the future.

CSG Forte Team

CSG Forte Team

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