As payment processing technologies move consumers from the teller station to the mobility of the internet, companies are adopting online payments – and they are saving time and money in the process. For the ARM industry, online transactions speed up the collections process and eliminate many of the costs associated with manually updating each transaction.
Why Switch to Online Payment Processing?
A recent study reported that nearly nine-in-ten Americans are online, and 77 percent of them own a smartphone. In a tech-savvy generation that demands speed and simplicity, the two biggest reasons that collections agencies are changing to electronic payments are increasing convenience and customer experience.
By signing up with a payment gateway provider such as PaymentVision, the collections company is immediately relieved of the obligation to manage the collections process after agreements to pay are formed. When debtors agree to a repayment plan, the terms of that agreement are set into the collections company’s computer program. The transactions that follow are both automatic and accurate and require no further human intervention. The agency’s costs go down because there is no need for staff to follow through with the management of the agreement. Plus, the steady and reliable digital collecting process assures a constant stream of revenue for the agency and its clients so the collections business can contemplate future growth based on reliable resources.
Another convenience gained with electronic payment processing is the hands-off management and reporting of compliance regulations. The collections services industry receives the highest number of complaints by the Consumer Finance Protection Bureau (CFPB) and, often, these companies are hard pressed to identify and present the information necessary to prove their compliances and their proper and legitimate collections activities. The digital portal gathers compliance data automatically as it processes the payments, which provides the collections agency with an instant response if or when consumers file complaints against it.
Ensure Customer and Client Satisfaction
More and more, consumers are choosing to make their payments quickly – and often from the convenience of their home – using a smart device. According to a recent study, more than 56 percent of all bills are now paid online, with younger generations making up the majority of users. Those numbers are predicted to grow, and collections agencies will have to adapt their processes to leverage the digital arena if they intend to stay competitive.
Pursuing Payment Processing Options
In order to engage the largest possible consumer audience, the agency must be prepared to offer a wide variety of payment methods. The most well-known (and convenient) online payment portals accept credit/debit cards, electronic checks, and ACH (Automatic Clearing House) payments. Transactions using these methods move swiftly through the financial system and record secure and compliant documentation along the way.
Finding an Online Payment Solution for the Busy Collections Agency
Perhaps the most significant offering to look for when assessing vendors for online payment options is flexibility within the payment host’s services. Services such as mobile payments and virtual terminals give the agency the flexibility it needs to get its business done as quickly and cost efficiently as possible.
Highly-qualified payment gateway providers, like PaymentVision, can customize their online payment solutions to meet the specific goals and needs of a client – ensuring that they can integrate with little to no overlap.
Finally, because the digital payment portal is available 24/7, every transaction can be completed regardless of when or where it occurs. PaymentVision offers a wide variety PCI Level 1 certified payment solutions services for every collections company. Ready to get started? Contact us today.