Tag: payments

Understanding Electronic Bill Payments: A Comprehensive Guide for Governments

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Government entities are entrusted with the responsibility of managing taxpayer money wisely, so any investment in new technology must demonstrate a clear value proposition. Electronic bill payments offer a modern solution that can streamline operations, enhance efficiency and save money. By adopting digital payment methods, governments can improve the way they collect revenue, reduce manual handling and paperwork and provide a convenient and accessible way for residents and businesses to pay their bills.

But many government entities and departments remain largely reliant on outdated payment methods, such as mailing and processing paper checks, accepting in-person payments and conducting phone transactions—all of which are inefficient and inconvenient. And while up-front investments in expensive tools, like an online payments platform, must be carefully considered, keeping the status quo could be even more costly: According to recent data, government employees spend 10 to 20 hours per week fielding payment-related calls—that’s valuable employee time that could be spent on more complex, meaningful tasks.

Not only that, but without a robust digital payment infrastructure, governments risk missing out on collecting revenue altogether, or may experience collection delays. So, while the up-front investment in a digital payments platform can seem hefty, adopting electronic bill payments streamlines the way government agencies operate, making the process smoother and more efficient for constituents and employees while also saving money.

 

What Are Electronic Bill Payments?

Electronic bill payments involve transferring funds or exchanging money through digital channels, eliminating the need for physical methods like cash or checks. These transactions are facilitated by electronic systems that require collaboration between banks, financial institutions, payment processors and digital platforms.

Completing an electronic bill payment transaction typically involves several steps. After receiving the bill, the customer initiates the payment by providing the necessary payment information, such as bank account details, credit card number or digital wallet credentials. The payment gateway then verifies these details, checking for available funds and other authorization factors. Once the payment is authorized, the payment processor orchestrates the transfer of funds between the payer’s and payee’s accounts. Finally, both the payer and the payee receive a notification or receipt confirming the successful completion of the transaction.

Electronic bill payments offer numerous advantages over traditional payment methods. They are faster, more secure and cost-effective, making them an attractive option for both consumers and businesses. For government agencies, adopting electronic bill payments can lead to increased efficiency in processing payments, reduced manual handling and paperwork and improved cash flow management, plus ease of reconciliation and auditing, which improves visibility and makes transparency much easier to achieve. Additionally, electronic bill payments provide a convenient and accessible way for residents and businesses to pay their bills, which can help reduce late payments and improve overall satisfaction with government services.

By leveraging digital channels and secure systems, electronic payments streamline collections and offer a convenient alternative to traditional payment methods. As we move forward, it’s essential for government agencies to embrace these technologies to enhance their operations and better serve their constituents, who are largely accustomed to paying online—and want to be able to do more of it, In fact, 93% of consumers believe “all governments, including municipal governments,” should offer a digital payment option for constituents, according to data from PayPal/Logica Research.

 

Why Electronic Bill Payments Are Essential for Governments

  • Increased efficiency in processing payments: Electronic bill payments streamline the payment process, reducing the need for manual handling and paperwork. This leads to faster processing times and fewer errors, allowing government agencies to allocate resources more effectively and focus on other critical tasks.
  • Convenience for residents and businesses: Electronic bill payments provide a convenient and accessible way for residents and businesses to pay their bills. They can make payments anytime and anywhere, using various digital channels such as online portals, mobile-friendly pages and automated phone systems. This flexibility helps reduce late payments and improves overall satisfaction with government services.
  • Improved cash flow management for government authorities: By adopting electronic bill payments, government authorities can benefit from faster payment processing and more predictable cash flow. This enables better financial planning and management, ensuring that funds are available when needed for essential services and projects.

 

Introducing CSG Forte BillPay

With decades of experience in the industry, CSG Forte knows payments. Our comprehensive BillPay platform is designed to streamline and enhance the payment process, focusing on efficiency, security and user experience.

CSG Forte BillPay offers a range of features that can be configured to cater to each customer’s unique needs and is scalable as your company grows. Here are some of the standout features that make CSG Forte BillPay a game-changer for government payment systems.

  • Flexible payment options: CSG Forte BillPay supports a variety of payment methods, including online, in-person, over the phone, text-to-pay and via digital wallets. This flexibility ensures that constituents can choose the payment method that best suits their needs, leading to higher satisfaction and on-time payments.
  • Recurring payments: Our platform allows for easy scheduling and maintenance of recurring payments. This feature is particularly beneficial for offices that handle regular payments, such as taxes, utility bills and licensing fees. By automating these payments, agencies can reduce administrative burdens and improve cash flow.
  • Bill presentment: CSG Forte BillPay offers digital invoice access and a guest checkout option, making it easy for constituents to view and pay their bills online. The platform supports custom file formats and easy user interface (UI) customization, ensuring that the bill presentment process aligns with the agency’s branding and operational needs.
  • Fast and flexible integration: The platform is designed for quick and seamless integration with existing systems. With support for custom file formats and easy UI customization, government agencies can implement CSG Forte BillPay without significant disruptions to their current operations.
  • Enhanced security and compliance: BillPay prioritizes security and compliance, offering features such as account ownership verification, fraud prevention tools and secure point-of-sale (POS) devices. These measures help protect sensitive information and ensure that government agencies remain compliant with industry standards and regulations.
  • Centralized payments hub: The platform provides a centralized hub for managing all payment operations, including reconciliation, reporting and chargeback management. This centralization simplifies administrative tasks and reduces the risk of errors, allowing government agencies to focus on their core responsibilities.

CSG Forte’s comprehensive payment solutions extend beyond just streamlining bill payments. Our decades of experience in processing millions of transactions and managing billions of dollars in payments allows our team to offer reliable and scalable solutions for government agencies, ensuring adaptability to changing needs while maintaining cost efficiency. Here are some of Forte’s key features:

  • Seamless integration with government platforms: Easily manage payments collected through CSG Forte’s flagship programs. The integration capabilities reduce manual processes and errors, providing a seamless experience for both the agency and the residents.
  • Comprehensive payment solutions: Accept Automatic Clearing Housing (ACH) payments, debit and credit cards, digital wallet payments and in-person cards through our point-of-sale (POS) devices. This flexibility allows government agencies to offer constituents multiple convenient payment options, enhancing overall efficiency and satisfaction.
  • Proven reliability and scalability: We process more than 214 million transactions annually and manage $98 billion-plus in payments for more than 130,000 merchants across various industries, including government. This experience and capacity allow CSG Forte to scale alongside government agencies, adapting to their changing needs while reducing complexity and cutting costs.

 

How Forte Delivers for the City of Kinston

CSG Forte’s partnership with the city of Kinston, North Carolina, has produced amazing results for the municipality. City leadership wanted to offer residents electronic payment options for utility bills, civil service fees, recreational activities and other city services. After integrating electronic payment processing options, Kinston saw 41% year-over-year growth in the number of transactions processed. The city also received positive feedback from residents who appreciated the ease of making payments through the online portal.

How did Forte produce such dramatic results? Our development team created programming to bridge the gap between Kinston’s enterprise resource planning system and its payment interface. CSG Forte’s Secure Web Pay (SWP) Checkout tool now redirects payers from the city’s website to a secure third-party webpage to complete their transactions, allowing the city to begin accepting online card and eCheck payments without spending money or committing technical resources to developing their own webpage to process payments.

CSG Forte also launched an online and interactive voice response (IVR) utilities billing solution for Kinston using a convenience fee model and provided comprehensive technical support following implementation. By processing more payments electronically, Kinston staff now handle less cash and fewer checks, reducing bank fees and saving time.

As you can see, adopting electronic bill payments is a game-changer for government agencies. By streamlining the payment process, governments can boost efficiency, cut down on manual handling and paperwork and improve cash flow management. This not only saves valuable employee time but also makes life easier for constituents who expect to be able to pay their bills conveniently and securely through their preferred digital channels. And while the upfront investment in a digital payments platform might seem significant, the long-term savings and improved operational efficiency make it a smart move.

To learn more about how CSG Forte BillPay can help your government agency transition to electronic bill payments, download our government-specific eBook or sign up for a demo to learn more about CSG Forte’s comprehensive features designed to cater to your unique needs.

What Should Government Agencies Require from Their Electronic Payments Provider?

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Government agencies face both significant challenges and exciting opportunities in payment processing. Traditional methods of handling payments, including in person and by calling the agency, are increasingly considered inefficient by constituents used to myriad online payment options for most private-market transactions. Not only do processing payments through traditional methods cost more—as much as $20 per transaction compared to about 30 cents per digital transaction—they’re also prone to errors.

Processing payments manually is incredibly labor intensive. In fact, nearly four out of 10 respondents to one survey of government agencies reported their staff members spent between 10 and 20 hours per week taking in-person and phone payments. Local governments, which are typically strapped for cash, stand to lose substantial revenue each year by relying on traditional (antiquated) payment systems.

Digital payments offer numerous benefits, including faster transaction times, increased accuracy, reduced risk of fraud and enhanced resident accessibility. By integrating modern payment solutions, government agencies can improve their operational efficiency while also fostering better constituent relationships through more convenient and secure payment options.

As we delve into the features government agencies should look for in an electronic payments provider, it’s crucial to understand the significant positive impact these digital solutions can have on both operational costs and overall revenue management. Read on to learn more.

 

Improved Security and Compliance

Security and compliance are paramount for government agencies that want to handle electronic payments. CSG Forte offers robust security measures to ensure that sensitive information is always protected. For example, CSG Forte’s BillPay offers:

  • Level 1 PCI compliance: Earning Payment Card Industry (PCI) Data Security Standard (DSS) certification is the highest level of security standard for payment processors, ensuring that all transactions are handled with the utmost care and protection.
  • End-to-end encryption: This technology safeguards data by encrypting it during transmission, making it virtually impossible for unauthorized parties to access or misuse the data.
  • Data tokenization: This process replaces sensitive information with unique tokens, further enhancing the data security.

By choosing CSG Forte, government agencies can confidently process electronic payments, knowing that they are backed by industry-leading security measures and compliance standards.

 

Access to a User-Friendly Interface

Government agencies must be equipped and able to serve a vast range of constituents—from the most technologically-savvy users to individuals who don’t own and barely use a computer. That is why creating an accessible, user-friendly payment interface is essential for government agencies. CSG Forte BillPay offers an intuitive and easy-to-navigate platform that enhances the user experience for both residents and government agencies.

The Forte interface is designed to simplify the payment process, making it accessible to users of all technical levels. Residents can easily make payments online, and government employees can efficiently track and manage transactions, reducing the time they spend taking payments over the phone and increasing their time availability for completing more important tasks that require human intervention.

 

Seamless Integration with Existing Systems

One of the key advantages CSG Forte BillPay offers is its ability to seamlessly integrate with existing government platforms. This ensures that agencies can continue to use their current systems while benefiting from the enhanced BillPay features and capabilities.

By reducing manual processes and minimizing errors, BillPay helps streamline operations and improve efficiency. This means government agencies and their employees can focus more on serving their constituents and less on managing payment processes.

 

Customer Service and Support

CSG Forte is committed to providing exceptional customer service and support to government agencies. Their dedicated support teams are available to assist with any issues or questions that may arise, ensuring a smooth and efficient payment processing experience.

Having access to dedicated support teams means that government agencies can rely on expert assistance whenever needed. This support helps to minimize downtime and ensures that any technical issues are resolved promptly.

By choosing CSG Forte, government agencies can benefit from reliable and responsive customer service, enhancing their overall payment processing experience.

 

Get Started Today

While government agencies must take care to wisely spend taxpayer dollars, adopting and onboarding CSG Forte BillPay is a straightforward process. The easily implemented system provides a wealth of resources to assist agencies during the implementation process, ensuring a smooth transition and successful integration.

And even after the payment platform is live, your agency staff doesn’t have to navigate it alone: In addition to CSG Forte’s helpful customer service, we also offer relevant internal resources and guides to help navigate BillPay setup and customization. These resources are designed to provide comprehensive support and address any questions or concerns that may arise during the implementation phase.

One of the most pressing issues that government agencies face is the need to provide constituents with a convenient and efficient way to manage payments and billing information. CSG Forte BillPay addresses this problem by offering a digital portal where constituents can easily access one-time or recurring payment pages. This portal allows users to check amounts, payment dates and manage their payment options with ease. By utilizing this feature, agencies can significantly reduce the administrative burden on their staff and provide a seamless payment experience for the public.

From improved security and compliance to a user-friendly interface and seamless integration with existing systems, CSG Forte BillPay provides a comprehensive solution that meets the needs of modern government agencies. By adopting CSG Forte BillPay to take advantage of these benefits and improve their overall payment processing experience, agencies will be able to streamline their operations, reduce costs and provide a better experience for their constituents.

To learn more about how CSG Forte BillPay can help your government agency transition to electronic bill payments, download our government-specific eBook or request a demo to explore our comprehensive features designed to cater to your unique needs.

Securing Merchant Gateways in the Era of Effortless Experiences

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Many merchant service providers (MSPs) now offer online portals that allow merchants to manage transactions and accounts, often with integrated virtual terminal capabilities. These gateways can streamline customer experience (CX) and backend operations to drive efficiency, satisfaction and clear communication. However, they are also prime targets for fraud.

Most merchants understand this risk and have taken great strides to balance consumer data privacy with effortless, satisfying experiences. Fewer, though, realize the fraud risks associated with merchant gateways aren’t just about customers. Just as bad actors can access customer information through these attacks, they can access a merchant’s proprietary documents, banking information and other high-risk areas of a digital ecosystem.

Then, thanks to real-time processing, hackers can make changes (or withdrawals) before the merchant has time to react. Given the speed of these transactions, merchants’ growing attack surfaces and the increased adoption of real-time payment gateways, it’s not just important that merchants who opt to use the tool prioritize cyber best practices. It’s vital to their survival.

 

What’s the Big Deal?

On the macro level, the impact of these attacks on merchants and other organizations is significant and growing rapidly. According to Sifts Q1 2024 Digital Trust and Safety Index, account takeovers (ATOs) cost merchants $38B in losses last year, and that number is expected to balloon to $362B by 2028. The organization’s Q2 Index found that 78% of businesses now face artificial-intelligence-enabled fraud risks consistently.

For individual omnichannel and digital-first merchants, attacks on payment gateway portal accounts present a serious threat, and they’re far more damaging than typical attacks on online shopping accounts. When a cybercriminal hacks into a payment gateway, they can quickly access the host merchant’s account and transfer money directly into their own. Imagine the panic of discovering that your hard-earned funds have vanished without a trace.

These criminals have a variety of tactics at their disposal, which makes prevention, detection and response difficult. Upon breaching a merchant account, the hacker might turn off notifications so the merchant is unaware when fraudulent transactions occur. They may change account contact details, so alerts about unauthorized activities are deactivated.

Worse yet, hackers who successfully access an account can run ACH credit transactions to tap money from a merchant’s bank account to their own. Many will alter bank information and other sensitive details to make it even harder for merchants to regain control of their accounts. It isn’t just a minor inconvenience; it’s a potentially business-crippling event. Once an attacker has access to the merchant’s account, there’s little hope of recovering the losses.

 

You Can Never Be Too Secure

Though cybercriminals and ATO attacks can be devastating, there are plenty of steps merchants can take to protect themselves. This includes the typical recommendations, like using complicated passwords, investing in credential managers and prohibiting employees from saving login details in browsers. However, given the increasing frequency and severity of these attacks, merchants may want to go a little further in their efforts to protect themselves from fraud.

Achieving that goal starts with the merchant’s MSP choice. When choosing a partner for payment gateways, it’s not just about the surface-level touchpoint the vendor can offer end users. Merchants must also verify that the MSP they choose offers the security tools necessary in the current cyber landscape, including:

  • IP-based restrictions: These settings allow merchants to configure gateways to restrict users from logging in to their accounts based on location. This helps prevent account takeovers, even if the password is compromised.
  • Granular roles and permissions settings: The more granular a gateway’s permissions and custom rules capabilities, the more precise a merchant can be about who gets access to what. This allows merchants to limit each user’s access to only the elements of the account that are necessary to their role—which means fewer entrances to sensitive areas of the system for hackers to exploit.
  • Multifactor authentication (MFA) requirements: This security mechanism requires a user to verify their identity through two (or more) methods. The extra step(s) protects accounts with compromised login credentials with a time bound authentication code that must be verified via a secondary touchpoint like a SMS, Phone call or an email different from the primary one.
  • Authenticator app: Varied and a better form of MFA, in which the authentication code is generated locally and is not intercepted by cybercriminals or stolen because of a SIM takeover.
  • Passkey authentication: Passkeys differ from MFA in that there is no password to enter. Instead, the system creates unique public and private keys for every online application or site, device and user identifier, then matches the keys to their public counterparts to confirm identity and grant access. By removing traditional credentials from the process, this approach leaves traditional phishing nearly useless, as there is no password or username to steal. It doesn’t make accounts unhackable, but it does make executing a fraudulent login much more complex and less dependent on human error.
  • Transaction Risk Management: AI/ML-based models that instantly score an incoming transaction for fraud based on several parameters such as the transaction history, payment methods used, location, time of the transaction, the average amount of the transaction etc. These models allow merchants to customize the base model to suit their business needs.

The above represent just a few of the many possible tactics a merchant could use to firm up operations against ATOs—and a strong MSP in today’s market should offer all of them and more. This proactive approach not only mitigates financial risks but fosters trust with customers and stakeholders, leading to happier, loyal customers.

 

Securing Merchant Gateway Against Intruders

To protect merchant gateways from fraud can’t just be a priority; it must be a necessity. In today’s increasingly digital world, safeguarding sensitive data is an end-to-end imperative, and it must be a part of every decision. After all, the stakes are high! A single fraudulent incident can expose customer data, tarnish reputations and jeopardize future success.

A smart MSP will understand that and embrace its role as a supporting partner to merchants as they seek to delight and protect customers. Together, MSPs and merchants can fortify defenses against fraud and unauthorized access to maintain resilience, safeguard reputations and get back to what matters: delivering effortless and secure experiences that drive customer trust, lasting loyalty and business growth.

If you’re ready to elevate your payment security and protect your business against cyber threats, now is the time to act. Discover how CSG Forte’s advanced payment solutions can provide the robust security measures you need to stay ahead of fraud and ensure the integrity of your transactions. Contact us today to learn more about how we can help you build a secure, trusted and seamless payment experience for your customers.

Recurring Payment Systems: How a Great One Can Boost Your Bottom Line

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Your payments platform is supposed to be drawing revenue, right? Unfortunately, poor payment processes could be costing you—both customers and money. How can that be? Complicated, disjointed payment processes can frustrate customers, eroding trust and leading them to choose a different provider. On the other hand, providing the right payments platform makes it easy for customers to keep paying their bill and for you to keep growing your business.

Generating consistent revenue is critical for any business, and having a robust recurring payments platform is a key factor to making that happen. But not all systems are created equal. The best payments platforms have several key features that distinguish them from competitors and can have a significant positive impact on your bottom line.

 

Recurring Payment System Core Functions

A recurring payment system is designed to automate regular payments from customers, ensuring that payments are processed on a consistent schedule without the need for manually inputting payment information every billing cycle. Core functions that a payments platform should offer include:

  • Payment scheduling: Customers have enough to remember without having to mark their calendars to pay a bill every month. Automating the collection of regular payments helps ensure customers pay their bill on time and consistently (weekly, monthly, annually, etc.).
  • Payment processing: No one remembers their credit card number or account information, and digging a card out to make a payment is a pain. Automating the payment process (ACH, credit cards, etc.) ensures customers can make consistent and timely payments without the need for manual input, making customers happy and helping your business run smoothly. Additionally, using a payment solution that leverages tokenization for recurring payments ensures payment data is kept safe and out of your systems.
  • Invoicing and notification capabilities: Customers like surprises, but not on their bills. Automating your company’s invoicing and payment notification capabilities means your customers are informed about their payment amounts, including any changes, enhancing transparency, satisfaction and reducing missed payments.

 

Recurring Payment System Must-Haves

Many businesses rely on recurring revenue models to ensure steady growth and financial stability in today’s digital, often subscription-based, purchasing world. Their payment systems are the engines for those models, powering customer satisfaction, operational efficiency and revenue consistency. A payment system must offer a range of features that cater to both the business’s needs and the customer’s expectations, such as:

  • Customization and automation: The best recurring payment systems offer customization and automation options. Customers can choose different payment schedules or methods, and browse available plans, current promotions and key features, allowing them to feel in control of their options. Automated retries for failed payments help reduce customer frustration and missed payments.
  • Security and compliance: The best systems ensure Payment Card Industry Data Security Standard (PCI DSS) compliance for card payments, implement strong data encryption and have robust fraud detection measures. Leveraging tokenization can also help ensure recurring payment data is kept secure. Trust and security are crucial for building long-term relationships with customers.
  • Self-service options: A great recurring payment system has intuitive user interfaces for payment management, empowering customers to manage their payments gives them a sense of control, which increases satisfaction and loyalty. Making it simple for customers to change or cancel their recurring payments is also a key feature that helps keep them returning to your site.

 

Juniper Research Can Help You Choose the Right Payment System

Juniper Research, a leading analyst firm in the mobile and digital tech sector, predicts that recurring payments will present a $15 trillion opportunity by 2027. “This means now is the time for vendors in the space to stay agile and embrace customer choice,” said Nick Maynard, VP of fintech market research at Juniper Research. “CSG consistently surpassed our evaluation criteria for innovation, user experience, compliance and security in a highly competitive field.”

Juniper Research recently recognized CSG Forte Engage at the 2024 Future Digital Awards for Fintech & Payments, awarding CSG a Platinum win in the Omnichannel Payments Platform category and Gold in the Recurring Payment Platform Innovation category. Juniper identified Forte Engage as a standout recurring payments platform because it “offers a true omnichannel experience to help improve customer satisfaction and engagement while mitigating late, failed and abandoned payments.”

CSG Forte Engage can help your company increase its revenue and reduce customer churn while complying with evolving security requirements. Here’s how:

 

Increased revenue and predictable cash flow

  • A reliable system ensures on-time payments and reduces missed revenue opportunities.
  • Automation reduces errors and streamlines manual work for billing teams, cutting down on administrative overhead.
  • CSG Forte Engage scales easily with your business as your customer base grows.

 

Customer retention and reduced churn

  • Smooth multichannel billing experiences improve the customer experience and increase brand loyalty.
  • Easy payment management and flexible billing options lead to longer customer lifecycles.

 

By investing in the right payments system now, you can prevent facing costly migrations in the future. The best recurring payment systems, such as CSG Forte Engage, stand out for their flexibility, automation, security, integration and superior customer experience.

You can accept and manage recurring payments easily with CSG Forte. Schedule payments, verify accounts, handle returns and minimal downtime with our robust payment platform. Contact CSG for more details or sign up today.

Understanding Surcharges vs. Convenience Fees: When and How to Use Them

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When the bill arrives, customers want to pay it their way. Businesses, too, have preferred accepted payment methods. To reconcile the differences and cover extra costs, they oftentimes turn to added fees.

Businesses often consider implementing surcharges or convenience fees to help manage payment processing costs. At first glance, these fees may appear interchangeable, as both are designed to offset the expenses associated with handling card payments. However, understanding the distinction between the two is crucial, as they elicit different responses from customers and are subject to distinct regulatory guidelines.

In this blog post, we will explore the difference between surcharges and convenience fees. We’ll explain what they are, key distinctions between their usages and the regulations governing them, and when to apply each one. By gaining a clear understanding of these charges, businesses can make informed decisions that align with their goals.

 

What Are Surcharges?

A surcharge is an additional fee that a business imposes on a customer when they use a credit card for payment. This fee helps cover the costs associated with processing credit card transactions (such as merchant fees or payment gateway charges) by passing them down to the consumer. Surcharges are typically calculated as a percentage of the total transaction amount, and they’re added to the total payment amount at the moment of checkout. Surcharges are capped at either 4% of the total transaction or the cost of accepting the card—whichever is lower.

 

Why businesses add surcharges

When businesses decide to implement surcharges, the biggest factor is often their interest in offsetting their costs for processing credit card payments. By passing on some of the processing costs to customers, businesses can protect their bottom line without raising prices across the board. This practice is especially common in industries with thin profit margins, where every cent counts. The public sector, where organizations operate under rigid budget constraints, is one such example.

Also, surcharges can incentivize customers to choose alternative payment methods that incur lower processing fees, such as ACH, ultimately reducing the overall transaction costs for the business. This strategic approach allows businesses to manage their expenses more effectively while providing transparency about the costs associated with different payment options. This way, they not only safeguard their financial health but also foster trust and openness with their clientele.

 

Examples of common surcharges

Surcharges can look different depending on the industry and its services, but can only be applied to credit card payments. For instance, a restaurant may add a 3% surcharge to the total bill if a customer pays with a credit card. Similarly, an online retailer might opt to impose a fixed surcharge of $1.50 for each credit card transaction. Service-oriented businesses, such as utility companies, are also known to apply surcharges to cover the costs of credit card processing for bill payments.

By implementing surcharges, businesses can better manage the expenses associated with credit card processing and maintain financial stability.

 

What Are Convenience Fees?

A convenience fee is an additional amount charged to customers who want to use a payment method or payment channel that’s different from the standard ones the business accepts. Convenience fees can apply to more than just credit card transactions—for example, online payments or phone payments can be subject to the charge.

This fee is designed to cover the extra costs associated with offering alternative payment options, such as credit card payments for services that are typically paid for by ACH, check or cash. Unlike surcharges, convenience fees are not always tied to the transaction amount and can be a fixed fee or a percentage of the payment.

 

Why businesses charge convenience fees

Convenience fees are a practical way to help organizations manage costs associated with diverse payment methods while offering customers the flexibility they want.

Businesses implement convenience fees to offset costs associated with processing alternative payment methods. This way, they can provide a better customer experience without being unduly burdened financially.

Charging convenience fees can also be a strategic decision. It’s a way to guide customers towards preferred payment methods that incur lower costs for the business. By incentivizing the use of certain payment options, businesses can make their payment processing as cost-effective as possible.

 

Examples of common convenience fees

Since convenience fees are usually applied when customers choose to use a payment method that the business does not traditionally accept, they can be found in many different contexts.

For example, if a utility company typically accepts payments in person or by mail, they may charge a convenience fee for payments made online or over the phone. A concertgoer might incur a convenience fee for an online ticket purchase if the standard payment method is cash at the box office. Likewise, many municipalities charge convenience fees for citizens that choose to pay their taxes by credit card, as opposed to ACH or eCheck.

In any case, convenience fees are accepted by customers willing to pay a little extra for the privilege of using their preferred payment method and channel.

 

Key Differences Between Surcharges and Convenience Fees

While both surcharges and convenience fees are designed to counterbalance the added costs businesses incur from processing payments, they aren’t applied nor perceived the same way.

Surcharges help businesses lessen the financial burden of processing credit card payments, while convenience fees are intended to cover only those extra costs that come with alternative payment options. But there are additional differences to consider:

Surcharges

  • Are charged by the credit card issuer to the merchant, who then chooses to pass the cost down to the consumer
  • Can’t be applied to debit or prepaid card payments
  • Are typically a fixed price and are illegal in some states

Convenience Fees

  • Are charged by merchants directly to consumers
  • May apply to any payment method, not just credit card transactions
  • Are often calculated based on a certain percentage of the purchase cost
  • Must be disclosed at the time of purchase

One critical distinction between surcharges and convenience fees that businesses need to understand is the difference in customer perception.

Convenience fees are generally viewed more favorably by customers. They can understand and even appreciate that they are being charged extra in exchange for the added benefit (or convenience) of using a payment method that the business does not traditionally accept. There’s greater transparency and even a degree of choice in the matter.

By contrast, surcharges are charged by credit card issuers to the business and are not always disclosed. Feeling that they are absorbing an undue cost, customers tend to have a negative perception of surcharges.

 

When to Use Surcharges vs. Convenience Fees

In some cases, it may be more appropriate to use a surcharge than a convenience fee, or vice versa. Knowing the difference is important for businesses that are evaluating which fee structure to implement.

Consider these key factors to decide when to use surcharges versus convenience fees:

  • Business goals: Determine which fee structure better aligns with the company’s objectives. Convenience fees might be preferable if the goal is to offer additional payment methods without absorbing extra costs. Surcharges might be considered if the aim is to recoup the costs imposed by credit card issuers.
  • Customer perception: Surcharges may create a negative perception as they are sometimes seen as “hidden” costs passed on by credit card issuers. Convenience fees tend to be viewed more positively by customers, who enjoy the benefit of using alternative payment methods.
  • Availability: Not every payment processor allows businesses to offer both convenience fees and surcharges. It’s important to investigate the availability of each fee structure.
  • Required disclosures: Convenience fees must be disclosed at the time of purchase and are generally applied to any payment method, not just credit cards. Surcharges must be disclosed before purchase to comply with legal requirements.

Additionally, there are different rules and regulations for surcharges and convenience fees that businesses should consider before choosing which to use.

 

Rules and Regulations for Surcharges vs. Convenience Fees

Merchants that charge either type of fee should be familiar with the following legal frameworks:

These measures aim to increase transparency and fairness in financial transactions by regulating how businesses can impose surcharges and convenience fees.

 

Legal guidelines for surcharges vs. convenience fees

Surcharges are not legal in all states and must be deemed “reasonable” where they’re allowed. Customers, card brands and acquirers must be given prior notice before the surcharge is applied. The surcharge must again be disclosed on the customer’s receipt. These fees are typically charged by the credit card issuer to the merchant, which then chooses to pass the cost down to the consumer.

Convenience fees must be disclosed to customers before they complete the transaction. They are to be calculated based on a certain percentage of the purchase cost and clearly marked at the time of purchase. The regulations concerning convenience fees are not as complex.

 

Best practices for adhering to legal standards

As we mentioned, legal standards regarding surcharges and convenience fees can vary by situation or state. But here are a couple rules of thumb businesses might follow when implementing them:

  • Follow disclosure guidelines. Clearly disclose any surcharges or convenience fees to customers before completing the transaction. Present all fees in a way that’s transparent and understandable.
  • Charge fair fees. Ensure that any surcharges or convenience fees are reasonable and in line with legal requirements. Avoid imposing excessively high fees that could be perceived as unfair or exploitative.

It’s important to stay informed about regulations and customer preferences when deciding between surcharges and convenience fees. By prioritizing compliance and transparency, businesses can help mitigate the risk of legal challenges and strengthen customer relationships.

 

Choosing the Right Fee

Convenience fees and surcharges aren’t equal in the eyes of the law or the customer. To understand which fee structure an organization can use, businesses must consider both their ultimate goal in adding a fee and the legal implications that come with each.

Surcharges, while potentially increasing revenue, require careful navigation of state laws and a commitment to transparency to avoid alienating customers. Convenience fees, while often simpler to implement, must be clearly communicated and justified to be perceived as fair and necessary. By applying the right fee structure, businesses can offset expenses while preserving customers’ trust.

CSG Forte offers convenience fee pricing to support your payments and customer needs. Contact us to learn more.

The 5 Biggest Payment Processing Headaches for ISVs (and How to Relieve Them)

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As independent software vendors (ISVs) know too well, there is a lot more to offering payments than just accepting and processing them. Payment processing is fraught with complexities for ISVs that are trying to keep their customers happy. Besides the transactions, ISVs must figure out how disputes and chargebacks will be handled, for example, or how customers will be protected from fraud. These challenges can affect the overall customer experience (CX), making it essential for ISVs to find effective payment solutions to integrate into their software.

That’s why choosing the right payments partner is imperative for ISVs that want to alleviate those payment processing headaches. In fact, offering an easy-to-navigate, reliable and secure payments platform can turn what are often seen as challenges into seamless, customer-retaining experiences. Let’s unpack five common payments headaches and how to relieve them.

 

1. Onboarding

Headache: Ensuring new customers experience a smooth and efficient setup is crucial for building customer loyalty from the get-go. However, onboarding often involves numerous steps, including KYC (know your customer) compliance, data integration and system configuration. Any hiccups in this process can lead to frustration and even delay the customer’s ability to start accepting payments promptly.

Solution: A reliable payments partner can streamline the onboarding process by offering automated solutions that reduce manual effort and minimize errors. One example of such automation is the streamlined onboarding process with automated verifications. This system automatically verifies the identity of new customers using various databases and compliance checks, ensuring that the onboarding process is both secure and efficient. By leveraging advanced technologies and a well-defined onboarding strategy, an experienced and knowledgeable payments provider ensures that new merchants are up and running quickly and efficiently while protecting you by filtering bad actors.

 

2. Risk Management

Headache: ISVs must navigate a rapidly evolving landscape filled with potential threats. For example, an ISV might face penalties for non-compliance with PCI DSS regulations, which mandate security measures for handling cardholder data. Failure to comply could lead to hefty fines, increased audit requirements and even the loss of the ability to process credit card payments altogether. Failure to effectively manage these risks can result in financial losses, legal issues and damage to ISVs’ reputations.

Solution: The best payment partners offer comprehensive solutions that include real-time fraud detection, and compliance monitoring. These tools help ISVs protect their merchants and maintain a secure payment environment.

 

3. Dispute Management

Headache: Managing chargebacks and customer disputes can be time-consuming and complex. Disputes can also generate a lot of call center inquiries, which can strain company resources and impact the overall customer experience.

Solution: By providing streamlined dispute resolution processes and expert support, a great payment partner can help ISVs manage chargebacks more effectively and reduce the impact on their merchants. For example, their software might include automated chargeback management tools that notify the merchant of a dispute, allow the upload of necessary documentation, and assist by providing easy access to details and context to challenge the chargeback. Depending on the needs of the ISV and their own systems, having direct integration methods, such as REST API resources for disputes, can provide greater flexibility and scalability. This allows ISVs to focus on their core business activities while ensuring positive CX and improving retention.

 

4. Fraud Prevention

Headache: Fraud prevention is a top priority for ISVs, as fraudulent activities can result in significant financial losses and damage to their reputation. Implementing robust fraud prevention measures requires advanced technologies, continuous monitoring, and compliance knowledge. Some specific examples of fraud types ISVs need to watch out for include:

  • Card-not-present (CNP) fraud: This occurs when fraudsters use stolen credit card information to make purchases online or over the phone, without the physical card being present.
  • Chargeback fraud: Also known as “friendly fraud,” this happens when a customer disputes a legitimate transaction, often with the intention of getting goods or services for free.
  • Phishing scams: Fraudsters use deceptive emails or websites to trick individuals into providing sensitive information, such as login credentials or credit card numbers.
  • Account takeover (ATO): This involves fraudsters gaining unauthorized access to a user’s account, often through phishing or data breaches, and using it to make fraudulent transactions.
  • Identity theft: Criminals use stolen personal information to create fake accounts or make unauthorized transactions, posing as legitimate customers.

Solution: A payments provider that offers reliable fraud prevention solutions can help ISVs mitigate this risk. These solutions typically include machine learning algorithms, real-time transaction monitoring and multi-layered security protocols.

 

5. Customer Support

Headache: When merchants encounter issues with their payment platform, receiving inadequate support can exacerbate the problem, leading to frustration, delayed resolutions and potential financial losses. ISVs need the capabilities to provide swift and effective help when things go awry for their customers. Quick service restoration is imperative to keep any business running smoothly, and shortcomings in support can lead to interruptions in platform functionality, setting off a cascade of customer service issues.

Solution: ISVs must offer quality, consistent and knowledgeable customer service, provide comprehensive training materials and resources and implement a reliable system to track and resolve issues promptly. By ensuring that merchants have access to expert support whenever they need it, ISVs become a partner in improving customer satisfaction, thereby building loyalty and reducing operational disruptions.

Payment processing can be challenging for ISVs. But getting it correct is worth it—83% of ISVs said they’ll see an increased revenue share from payment acceptance over the next 12 months. By partnering with a reliable payment provider, ISVs can transform these headaches into seamless, customer-retaining experiences.

Looking to alleviate pain points in onboarding, risk, fraud, dispute and elsewhere? Contact an expert at CSG Forte to learn more about how we can help you enhance your payment processing capabilities and provide a seamless experience for your merchants.

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.

How ISVs Can Retain Customers Through Effortless Experiences

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Everyone wants payments to be simpler. Consumers who make them. Merchants that accept and manage them. And integrated software vendors (ISVs) that offer them through their platforms.

But the “rules” for enabling simple payments are changing. ISVs will need to know how shifting trends in customer experience (CX) will influence their ability to retain customers.

In a recent webinar, a panel of CSG experts dissected five major shifts in CX that ISVs can capitalize on to deliver better customer journeys for merchants and end customers alike. “The State of the Customer Experience: How ISVs Can Create Effortless Experiences” was moderated by Liz Bauer, EVP and chief experience officer at CSG, and she was joined by these panelists:

Mark Smith, SVP of customer experience, CSG

Sukanya Madhavan, VP of product management and engineering, CSG Forte

Jeannette Mbungo, VP of payments operations, CSG Forte

Watch the full discussion here, or read on for a sneak peek.

 

EFFORTLESS IS THE NEW UNFORGETTABLE

The panelists discussed the concept of making customer experiences “forgettable”—which, to many organizations, sounds counterintuitive. Conventional wisdom was that organizations should aim for digital experiences that wow their audience, but that’s not what customers are necessarily asking for—certainly not customers who are just trying to make payments.

“The world we live in today, people like efficiency, and ease and speed,” Mark said. “They get to do the thing they were trying to do, and they almost don’t notice it. That’s the best kind of experience. That’s what customers love, and this search [by organizations] to try and overreach and deliver something incredibly special, that’s not where the money is in this market today.”

This means ISVs need to focus on providing frictionless and intuitive payment journeys that meet the customers’ needs and preferences. Whether it’s online, in store, contactless or omnichannel, the payment experience should be effortless and forgettable.

For the payments industry, Jeanette pointed to the importance of the onboarding experience—“the first meaningful interaction you have with the customer”—as a high-priority touchpoint. This means creating a smooth application process where customers can easily provide all the data that’s required of them. It should also be easy for ISVs to monitor and manage, with webhooks to get status updates on customers’ applications as they progress.

“So to me, that’s the first key milestone, if you will, that we need to pay attention to, and we are intentional about enabling our customers to provide that effortless and seamless onboarding experience,” Jeanette said.

 

DATA IS ONLY AS GOOD AS THE ACTION IT DRIVES

Collecting data is only step one. ISVs need to use data to understand their customers better, personalize their offerings and optimize their processes. Data can help ISVs identify pain points, opportunities, trends and behaviors that can inform their decisions and actions.

This means ISVs should not only look at the data, but also be able to use it to engage the customer intelligently throughout their journey.

“A simple example could be, if I am using contactless payments on a regular basis, show me only that as the first option for me to go in and finish the payment,” Sukanya said. She added that ISVs should leverage voice of the customer and customer advisory boards to gather the data and act on it, helping them continuously refine the payment experience.

In addition to personalizing the payments journey, data analytics can also help bolster payment data security. ISVs should be able to recognize patterns in the payments that are processed among their merchants and end customers.

“We know what our consumer patterns are and what merchant patterns are, so [we use] that data to detect any anomalies,” Sukanya said. “Typically, a business processes transactions less than $5000 on a regular basis. If I see a transaction over $15,000, that is an anomaly—send an alert asking for confirmation.” AI can also help predict fraud risks and help organizations be proactive in stopping fraud, she added.

 

OMNICHANNEL IS ABOUT QUALITY, NOT QUANTITY

It used to be, organizations felt pressure to offer as many communication channels as possible to satisfy as many customers as possible. This approach didn’t always account for which channels each customer actually wanted, and at what point in their journey.

Applying that to the merchant training journey, Jeanette said the key for ISVs is to not throw everything at the customer at once.

“It may make more sense to share a video or an article about how to handle disputes within your system maybe 30 days into your processing journey, versus [telling them on] day one: ‘Here are your credentials, here is how you work with disputes, here’s where you log in to pull reporting.’ That may be too much.”

In short, the goal is “to understand the customer journey and meet [customers] where they are in their journey to provide the optimal solution that aligns with their needs,” Jeannete added.

 

DON’T MISS THE REST OF THE INSIGHTS

These were only three of the five shifts that the panelists delved into throughout the webinar. To learn about the rest—and how your business can respond to build customer loyalty—check out the full video here and download CSG’s State of Customer Experience report.

Think Outside the Square: How QR Codes reshape payments

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From telemedicine to bread baking, there’s a list of things that enjoyed a surge in adoption during the pandemic. For businesses, that includes the use of contactless payments and QR codes—which turned out to be no passing trend.

More than half of U.S. consumers now use some form of contactless payment, according to a Mastercard poll. In 2022, QR code payments accounted for $2.4 trillion in global spend, and that number is projected to keep growing past $3 trillion by 2025.

Previously, QR codes were used mainly for marketing purposes. Now they have found mainstream adoption beyond the pandemic as a tool to facilitate contactless payments. With convenience being a top priority among consumers, QR codes have proven to be a seamless and secure payment method for both businesses and customers alike.

We’ll delve into the benefits of incorporating QR codes into your multichannel payment processes and offer examples on how to effectively implement them, enhancing the payment experience for your customers.

 

WHAT ARE QR CODES?

QR (short for “quick response”) codes are two-dimensional barcodes that store information in a readable pattern. Traditional barcodes can only hold limited data like product numbers. QR codes, with their added dimension, can store various types of information including URLs, contact information and payment details (e.g., an invoice).

QR codes encode data into a grid of black squares on a white background, which can then be scanned by a smartphone or QR code reader. The scanning device then instantly accesses the encoded information, letting users quickly access websites, make payments or retrieve other information automatically.

You can think of QR codes as a bridge between physical and digital commerce. They offer a quick way to interact with content and perform tasks using a smartphone camera.

 

TYPES OF QR CODES

The QR codes that businesses use can be split into two types: static and dynamic. Each type differs in content and function.

STATIC QR CODES

These QR codes contain fixed data—the data can’t be changed once the code is generated. You often see these used to contain simple, unchanging information like website URLs, business card details or product information.

DYNAMIC QR CODES

Dynamic QR codes can be modified after creation. They’re often used in conjunction with a web service or platform that lets a user update the content linked to the code. This means the QR code can be personalized to specific users—linking to different URLs or displaying different text. This is why dynamic QR codes are often used in situations that require real-time updating, like marketing campaigns, inventory management and—as concerns us here—payments.

 

HOW QR CODES WORK IN PAYMENTS

Here, we’ll focus on one of those tasks that QR codes facilitate—initiating transactions—which merchants can use to offer contactless payment at a store or settle an invoice remotely.

Take retail transactions, for example. Merchants can generate QR codes to represent a specific payment amount. At the point of sale, a customer can simply scan a displayed QR code using their smartphone. This usually directs them to a secure payment portal where they can confirm the transaction and choose their preferred payment method—credit/debit card, mobile wallet, bank transfer, etc. The process makes it easy for customers to pay on the go, and merchants don’t need to have a cash register or payment terminal to accept payment.

Beyond retail transactions, QR codes can also facilitate invoicing with reduced friction. Businesses can generate a QR code for each invoice, embedding payment details such as the invoice number and amount due. When recipients receive the invoice, they can simply scan the QR code to access the payment portal, where they can review the details and complete the transaction with a few taps on their device. This streamlines the payment process by eliminating manual entry of payment information and reduces the risk of errors.

Essentially, QR codes are digital keys that unlock seamless payment journeys, whether they involve in-store purchases, ecommerce or invoice payments. They’re versatile and easy to use, making them an appealing tool for businesses looking to simplify their payment processes and improve the payment experience.

 

EXAMPLES OF QR CODE USE CASES FOR PAYMENTS

As mentioned, QR codes are versatile, and they help customers make quick, secure payments in a variety of ways. Here are just a few examples.

STREAMLINING PAYMENT VIA MONTHLY BILLING STATEMENTS

If your company sends out monthly billing statements, chances are you encourage customers to make payment online or through your app. You can take them straight to a payment portal by printing a QR code on the bill encoded with that URL. This saves the customer time in having to navigate to that portal through several clicks or even having to enter the URL. Not only that, but you can also encode the QR code to include the account number and amount due, which pre-fills the payment information for a faster checkout. It’s a great way to combine a traditional communication channel—the paper statement—with an easy digital payment experience.

ACCEPTING IN-PERSON PAYMENT MORE EASILY

Imagine you’re a field technician installing a new internet router in a customer’s home. As you’re setting it up, the customer shows interest in upgrading to a better router on the spot. With a few taps on your tablet, you quickly generate a personalized invoice reflecting the upgrade cost. Instead of fumbling with cash or card readers, you simply present the QR code on your device screen. The customer scans the code with their smartphone, and just like that, the payment is processed. You install the upgrade then and there, leaving the customer satisfied with faster internet connection. The best part is the QR code ensured payment right away—you didn’t have to invoice them and wait for the payment via the monthly bill.

REPLACING PAPER INVOICES

Suppose you’re a home repair service worker who has just completed a job for a customer. Instead of the traditional route of handing over a paper invoice and waiting for a check, you offer a more secure and efficient payment option: a QR code. The customer scans the code with their smartphone, securely processing the payment electronically. This not only saves time and reduces the risk of errors associated with manual payments, but it also provides a better payment experience by using a modern payment solution.

 

ADD QR CODES TO YOUR PAYMENT CHANNELS

Incorporating QR codes as a payment channel offers businesses a practical and efficient way to interact with customers. With CSG Forte Engage, our intuitive payments solution, organizations can seamlessly integrate QR codes into their operations, providing customers with personalized and secure invoices for hassle-free transactions. By leveraging QR codes, businesses can streamline their payment processes and enhance customer satisfaction with a secure and convenient digital payment channel.

Take the next step in offering this convenient, secure method and contact us today.

Taking Card Payments Over the Phone—Finding A Secure Approach

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Credit card fraud is widespread—and costly. A recent survey found that 65% of Americans with credit or debit cards have experienced credit card fraud at least once. Not surprisingly, 52% of U.S. bill payers rank security as a top feature in the digital bill payment process.

One area of heightened risk is taking credit card payments from your customers over the phone. Your organization needs to get paid and you can leverage tools to make taking phone and call center payments more secure.

Merchants who accept credit card payments must comply with the Payment Card Industry Data Security Standard (PCI DSS). Payment card brands may fine merchants up to $500,000 per incident if they aren’t PCI compliant at the time of a data breach.

 

Taking Credit Card Payments by Phone Is Risky Business

When consumers think of how contact center agents take payments, they often think of being asked to read off their credit card number, expiration date and CSV code over the phone.

If that doesn’t make you a little nervous—it should. That method of sharing card information may increase the risk of credit card fraud for several reasons:

  • A contact center agent may write the credit card information down on a piece of paper or somewhere visible where another person could walk by and steal the information.
  • A disgruntled employee taking the payment may steal the credit card information, using it to make unauthorized purchases or obtain funds from the account.
  • The customer may be in a public place when reciting credit card details. Someone may overhear the conversation and jot down the credit card information.
  • Reading out a CSV code negates the reason for having it—it’s used to prove the payer has possession of the card at the point of payment. Someone who overhears and captures that CSV can use it to make card-not-present charges.

 

2 Better, More Secure Ways to Take Credit Card Payments Over the Phone

  1. Inbound and Outbound IVR — Customers pay via IVR (interactive voice response) with automated voice prompts and keypad inputs. This eliminates all three problems listed above. The contact center agent transfers the caller to the payment IVR system. The customer enters the card number, expiration date and CSV on their phone keypad when prompted to do so. The IVR system is integrated into a payment gateway to make the transaction. The system then gives the customer a receipt number and the option to receive the receipt by email. To make it even more convenient for your customer, you can leverage an outbound IVR, where a customer can schedule a time to receive an automated call to make their payment.
  2. Live Agent Assist Technology — Businesses can leverage payments technology to have contact center agents quickly send customers a link to a custom online payment page for payment. By using a solution like CSG Forte’s Payer Engagement Platform, contact center agents can easily create an invoice with a few clicks of a mouse and send it to the customer via email or text message. This allows customers to pay promptly and securely—without sharing their credit card information with the agent. This method of payment greatly reduces the risk for fraud and the business’ PII data exposure.

The Payer Engagement Platform is a secure digital payment solution that enables customers to make payments using their preferred channel and payment method, at any time. Its Live Agent Assist feature allows call center agents to quickly create custom invoices to be sent to customers to complete transactions, eliminating the need for agents to collect sensitive information.

Contact us to learn how the Payer Engagement Platform simplifies bill payment, improves the customer experience and reduces fraud exposure.