Changing Behavioral Patterns
Making Electronic Payments The Selected Payment Method
- Although NACHA reported in December 2004 that for the first time in the history of payments, more bills were paid using electronic payments than printed checks - over 44 billion vs. 36 billion checks. This does not mean that all of your customers will immediately begin paying by electronic payments when you begin offering your customers the service.
- Although ComsScore's 2004 study states that 84% of consumers paying bills online prefer to pay their bills through their utility or merchant. This does not mean that all of your customers will automatically go to your site to pay their bills.
- And, although ACH "electronic check" payments are the lowest cost form of payment, not all of your customers will select ACH payments as their chosen payment method.
EPayment Loyalty Program
- No up front costs
- Addresses the question for your customer, "What's in it for me?"
- Offer your customers FREE services such as prescription drug card, $5,000 identity theft insurance, car repair savings card, ATM/Debit card lost registry as a thank you for paying their bills online
- RX savings up to 55% at over 55,000 pharmacies
- Car care 20% at national car care centers like Jiffy Lube, Meineke & AAMCO
- Lost card notification, emergency cash, loss of funds reimbursement
When your customers pay by an electronic check, your savings are immediate. Electronic checks cost pennies to process. Credit cards are expensive. They cost, on average, 2-3% of the payment amount. For instance, a $100 payment generally costs $2.50-3.00. A $1,000 payment costs $30. An electronic check still only costs pennies.
Use some of your savings to encourage your customers to pay for your product/service using electronic checks. Offer your customers special promotions as a thank you for paying by electronic check. The cost for the above services are as little as $1.50 to set up and $0.15-0.45 a year. Alternatively, you might consider offering $1 to a specific charity. The objective is to provide your customer with enough incentive to pay their bills electronically given that your savings go up dramatically as the number of customers increases.
Bottom Line - Each time someone pays by an electronic check, your or ganization saves money! It is clearly in your best interest to promote high use of the service to your customers.
Learn how your organization can begin to offer your customers online payment options. Call 866 50-ETRAN or visit www.e-tran.net.