All posts by Alison Arthur

Product and Content Marketing Manager Alison creates timely product marketing and thought leadership content that keeps Alacriti's community informed on the latest developments in billing and payments technology. With a background in payments and financial services, Alison specializes in composing content related to technology, security, compliance, and overall industry trends.
Alacriti Blog

What’s ahead for EBPP in 2019?

Electronic billing and payments are evolving rapidly thanks to advancements including artificial intelligence (AI), faster payments, and mobile technology. In addition, customers’ expectations for on-demand, seamless, and secure bill payments only continue to grow.

As we settle in to 2019, our electronic bill presentment and payments (EBPP) experts look back at key developments in 2018 and share their thoughts on what the future might hold for EBPP. Hear the latest thinking from Alacriti’s CEO, Manish Gurukula (MG); Head of Product, Stuart Bain (SB); and Sales Director, Nathan Marquiss (NM).

Q1: Looking back at 2018, what do you consider the single most significant development related to EBPP?

SB: Over the past year, the most notable development was the increasing acceptance of AI and chatbots as valid mechanisms for making bill payments. Giving customers the ability to initiate and execute these transactions using their own natural language creates a repeatable and user-friendly payment experience. In addition, billers are beginning to recognize the efficiency that AI and chatbots can provide for automating customer service requests related to billing and payments. For example, allowing customers to simply check their account balances or due dates without human intervention can lead to significant time and cost savings for all types of billers.

MG: To build on Stuart’s point, chatbots are becoming more and more the norm across all types of billers. I recently received a bill from my local utility company promoting the use of Amazon Alexa for bill payments. As more billers embrace this technology, more customers will become comfortable using it.

NM: In addition to streamlining the overall payment experience, chatbots also provide transparency into granular data that can help billers target different segments of their portfolio (i.e. bill/loan alerts and reminders, policy updates, account-related notices, renewal notifications, etc.). Through machine learning, billers can analyze the inquiries that customers make and “teach” chatbots how to respond. AI also provides insight into customer demographics related to who is using chatbots, in which channels (voice response vs. chat-based), and what questions they’re asking.

In 2018, we also saw the US faster payments initiative gain some momentum. There are many challenges in creating faster payments and the task force that was created to address these issues highlighted inconsistencies in integration points across financial systems. It’s still a work in progress, but significant headway was made in 2018 and I’m excited to see what the future holds.

Q2: Which EBPP topics do you think will be trending in 2019?

NM:  I think there will be increasing adoption and development around AI payments and other value-added services within payments, such as wearables and near-field communication (NFC) for contactless payments. I also think that more billers will start actively shopping for AI technology as they continue to wrap their heads around use case scenarios that can have a positive impact on their businesses. I think the tide is turning, and in 2019 we’ll see the use of AI really start to take off.

SB: I agree that we’ll see a continued rise of AI for billing-related customer service and payments. In addition, I also think there will be increasing demand for real-time provision of payment data back to billers, regardless of where the payment originates and how it’s funded.

MG: Building on Stuart’s point, billers increasingly want and need to know in real time when payments are being made. This can result in significant operational efficiencies and provide a better customer experience. For example, the real-time transfer of payments data can help a customer avoid losing service or being sent to collections.

Q3: What is the biggest challenge in EBPP that has yet to be overcome?

MG: I would say that the general adoption of electronic billing and payments continues to be a challenge. The success of any EBPP solution depends on whether a substantial percentage of customers actually use it. There is still ample opportunity to see adoption rates go up even higher.

NM: I would say it’s the realization that the customer experience really does matter. So many billers have legacy payment systems in place and because they aren’t “broken” they see no reason to change them. Billers may be resistant to new technology because they’re concerned about customer confusion or worried about disrupting their receivables cycle. Through my interactions with billers, I see firsthand what new technology can do to help their business models and meet the changing needs of their customers. The reality is that tomorrow’s customers – the ones that billers will gain in the next five to ten years – are going to have a completely different set of expectations than today’s customers. And billers need to prepare for that now.

SB: I would add that cash payments continue to be a challenge. Handling cash securely and accounting for these payments accurately continues to be a headache for many billers.  

Alacriti Blog

3 EBPP Resolutions for 2019

As we settle in to 2019, it’s a natural time to contemplate what we want to accomplish over the next twelve months both personally and professionally. When it comes to business-minded resolutions, don’t forget to consider the role of electronic bill presentment and payments (EBPP) in your customer journey. Bill payments are one of the most consistent points of contact that businesses have with their customers, and consumers are demanding more seamless bill payment experiences than ever before.

How can your business resolve to make bill payments simpler and smarter in 2019? Here are three resolutions to consider.

1. Embrace the positives that artificial intelligence (AI), machine learning, natural language processing, and chatbots can bring to bill payments.

Bots got a lot of press in 2018 and for good reason. They have the potential to revolutionize our lives in unprecedented ways, both big and small. Perhaps the most significant impact that bots can have on our business to consumer interactions is through the use of AI-powered chatbots that answer frequently asked questions, service customers, and complete simple tasks like facilitating bill payments. Some EBPP solutions now offer chatbot technology that lets customers pay their bills using simple text or voice commands without human intervention.

2. Continue the momentum of moving customers away from paper bills and toward e-bills.

It might seem like the entire world has gone electronic, but many customers still rely on the convenience of paper bills. We recently analyzed how several large healthcare providers are billing their patients that use Orbipay EBPP. What we learned is that the majority of these healthcare consumers are receiving e-bills only (an average of 65% across the companies analyzed), but an average of 35% are still receiving either stand-alone paper bills or paper bills in conjunction with e-bills.

Reducing the number of paper bills that your business prints, fulfills, and mails can provide considerable cost savings and operational efficiencies for your organization. In the new year, think about innovative ways to prompt customers toward e-bill adoption through marketing, promotions, and eco-friendly campaigns.

3. Give your customers the ability to pay their bills how they want, when they want, and where they want.

Consumers are always looking for new and improved ways to pay their bills. Some might like the convenience of setting up automatic payments that debit their accounts on a monthly basis. Others might prefer the ability to make payments on-the-fly using their mobile phones. And others might want to pay via newer channels such as text message, Facebook Messenger, and intelligent personal assistants like Amazon Alexa and Google Assistant. Be sure to partner with an EBPP solution provider that has its pulse on changing consumer preferences and delivers technology that can respond quickly to these changes.

The Bottom Line: The new year is a time to make resolutions in both our personal and professional lives. Resolve to offer your customers the best bill payment experience possible by partnering with a forward-thinking EBPP solution provider.

Alacriti Blog

5 Things We Learned at AFP 2018

Alacriti had the opportunity to attend and exhibit at AFP’s annual conference, held November 4-7 in Chicago. In addition to the many attendees we were fortunate to meet at our booth, we also attended a number of conference sessions dedicated to payments. In them, we took the pulse of what was on attendees’ minds as it relates to current topics, trends, and innovations in the payments ecosystem. Here are five high-level takeaways from the sessions we attended.

1. “Longer, higher, sooner” is shorthand for upcoming changes to Same Day ACH

Recently announced changes to Same Day ACH were a hot topic across many of the payments-related sessions. In the session, “The U.S. Path to Faster Payments”, one speaker summed up the new rules as, “Longer, higher, sooner.” This refers to lengthening the time window (an extra two hours per business day) to accommodate users on the West Coast, the higher maximum dollar amount per transaction (increasing from $25,000 to $100,000), and the quicker availability of funds for certain Same Day and next-day ACH credits.

2. The higher dollar value for Same Day ACH transactions might not be high enough

While there was positive feedback regarding the new, higher maximum transaction amount of $100,000, some attendees indicated that the amount could go even higher. One attendee mentioned that they would like to see that amount increased to $1 million, which garnered enthusiastic head nods from the crowd.

3. B2B checks work, which makes behavior difficult to change

Although faster electronic payments are gaining momentum among consumers, checks remain firmly in place for B2B transactions. In “The U.S. Path to Faster Payments” session, speakers shared data points from the 2016 AFP Electronic Payments Survey that showed B2B check use remained consistent between the years 2013 and 2016, even after nine years of steady decline. Why are B2B checks so difficult to dislodge?

Simply put, checks work. While there are efficiencies to be gained by moving to electronic payments including lower costs, faster settlement times, and increased liquidity, the overarching mantra seems to be, “If it ain’t broke, don’t fix it.” Changing these highly embedded processes and behaviors might prove challenging as the push toward electronic B2B payments marches on.

4. Healthcare estimates are becoming an increasingly important part of the patient payment experience

In a session that examined healthcare payments, “Generation Healthcare: Payment Innovation in the Digital Age”, panelists discussed the rising importance of healthcare cost estimates for patients. As younger consumers are becoming healthcare consumers, they’re demanding more transparency into the cost of their healthcare services before they receive them. Providing healthcare cost estimates can be an effective way of setting expectations for consumers about what their financial responsibilities will be if and when those services are consumed.

5. Faster payments might change the way consumers approach the timing of their bill payments

In the session entitled, “ACH: The Strategic Payment Option for Businesses”, one panelist observed how consumers’ experiences with faster payments might influence the way they approach their bill payments as well. They used the example of the widely accepted practice of having a set due date for bill payments like mortgages. As consumers are increasingly empowered to make payments when they want to, they might want to make payments toward their pending balances as funds become available, not necessarily waiting until the due date to pay the full amount.

Alacriti Blog

Bill Payments in 2017: Most Popular Ways (and Days) to Pay

Part 1 and Part 2 of our three-part series revealed how Orbipay® EBPP users funded their bill payments in 2017 (ACH, debit cards, and credit cards), and the options they chose when paying them (One Time, AutoPay, and Recurring payments).

Part 3 is dedicated to the channels (Web Portal, Guest Payments, Agent, and Interactive Voice Response) that users gravitated toward when making payments. Last year’s transaction data also reveals the days of the week that users were most likely to make their bill payments. Read five key takeaways from our analysis.

Takeaway #1: Web Portal transactions accounted for 53% of total volume in 2017

Orbipay EBPP users were most likely to log in to the Web Portal with a User ID and Password to make their bill payments. This was followed by Agent-assisted payments at 21%, Guest Payments (online payments that didn’t require a login) at 14%, and Interactive Voice Response (IVR) at 11%.

Takeaway #2: Web Portal was used most often across all transaction amounts

No matter the transaction amount, Web Portal was the payment channel of choice. Its usage only continued to grow after transaction values exceeded $100. Simple Web reached its highest usage for transactions under $10 at 25%.

Takeaway #3: Orbipay EBPP clients in the Manufacturing & Distribution sector were most likely to receive customer payments via Web Portal

There were four industries that recorded Web Portal payments in excess of 50% in 2017. They included Manufacturing & Distribution (68%), Insurance (65%), Government (55%), and Utilities (55%).

Takeaway #4: Orbipay EBPP clients in the Healthcare and Real Estate & Construction sectors were most likely to receive Agent-assisted payments from their customers

Customer payments were made most often via the Agent channel in both the Healthcare and Real Estate & Construction industries at 52%. The Education sector was close behind at 51%.

Takeaway #5: And the most popular day for Orbipay EBPP users to make their bill payments was…

In a landslide victory, Friday was the most popular day for Orbipay EBPP users to make their bill payments in 2017. Seven of the top ten most popular times (measured in hourly increments) were on Friday, with Monday holding the other three spots.

Stay tuned for facts and figures from our 2018 Orbipay EBPP transaction data, which we’ll publish in Q1 of 2019.

Alacriti Blog

Bill Payments in 2017: 6 Trends in Payment Options

Part 1 of our three-part series shared seven key insights from Orbipay® EBPP’s 2017 transaction data related to payment methods. But what payment options did users select when paying their bills last year?

In Part 2, we examine the use of payment options including One Time payments (single payments that did not recur), AutoPay (bill payments scheduled for a specific date and amount set by the biller), and Recurring payments (payment dates and amounts selected by users within the biller’s parameters).

Here are six trends the data revealed about payment options usage in 2017.

Trend #1: One Time payments accounted for more than half of total Orbipay EBPP transactions in 2017

One Time payments accounted for 55% of all transactions recorded in 2017. AutoPay was chosen more than one-quarter of the time (27%), and Recurring payments were selected for 17% of total transactions.

Trend #2: Users who logged in to the Web Portal were most likely to choose AutoPay

Users who logged in to the Web Portal with a User ID and Password were most likely to choose AutoPay to make their bill payments at 40%. One Time payments were a close second at 34%, followed by Recurring payments at 25%.

Trend #3: One Time transactions were most popular for all other payment channels analyzed

For payments that were made via Agents, One Time payments were used most frequently at 54% of all Agent-assisted transactions. One Time payments were used 100% of the time for both Interactive Voice Response (IVR) transactions and Guest Payments (web payments that didn’t require a user to login).

Trend #4: One Time payments were used most frequently across all transaction amounts

One Time payments were used most frequently for all transaction amounts, reaching 89% for transactions over $2,000. Usage of AutoPay maxed out at 39% for transactions between $100 and $200.

Trend #5: Manufacturing & Distribution and Utilities companies were most likely to receive bill payments via AutoPay

Of all industries analyzed, both Manufacturing & Distribution and Utilities accepted over 50% of Orbipay EBPP users’ bill payments via AutoPay transactions.

Trend #6: Six industries recorded One Time payments volume exceeding 50%

One Time payments were used most often in the Real Estate & Construction (100%), Education (99%), Government (97%), Banking (90%), Financial Services (77%), and Healthcare (76%) industries.

The third and final part of this series will examine 2017 trends in payment channel usage including Web Portal, Guest Payments, Agent, and IVR. It will also reveal the days and times that Orbipay EBPP users were most likely to make their bill payments in 2017.

Alacriti Blog

Bill Payments in 2017: 7 Insights About Payment Methods

The decisions that consumers make when paying their bills are driven by a variety of factors. For instance, what are their preferences when it comes to payment methods (ACH, debit cards, and credit cards)? Are they more likely to select a specific payment method depending on the industry that’s issuing the bill? What payment channels are they most likely to use? And what time of day is most popular for making electronic bill payments?

Here at Alacriti, we have unique insight into how consumers approach their bill payments. Our electronic bill presentment and payment solution, Orbipay® EBPP, provides a trove of transaction data from which we can gain a better understanding of consumers’ bill payment preferences and behavior. A deep dive into this data gives a glimpse at how customers fund their bill payments, when they are most likely to pay, and what payment channels they gravitate toward the most.

In this three-part series, we share some of the key observations we extracted from 2017’s transaction data. Part 1 is dedicated to insight we revealed about payment method usage including ACH, credit cards, and debit cards.

Insight #1: ACH was the most popular payment method offered by Orbipay EBPP clients in 2017

Across all clients on the platform, 93% offered ACH as a payment method to their customers. This was followed by debit cards (65%) and credit cards (61%).

Insight #2: ACH was the payment method selected most often by Orbipay EBPP users

Across all transactions, ACH was the most used payment method representing 51% of total volume for the year. Debit cards accounted for 31% of total transactions and credit cards accounted for 18%.

Insight #3: Debit cards were used most often for transactions under $20

When all three payment methods (ACH, credit cards, and debit cards) were available to users, debit cards were used most frequently (43%) for transactions under $20.00. For all other transaction amounts, ACH was the payment method of choice, especially for transactions that exceeded $2,000.00 (ACH was used 87% of the time).

Insight #4: When ACH wasn’t an option, users chose debit cards

Despite its popularity, not all Orbipay EBPP clients offered ACH as a payment method to their customers. For clients that didn’t offer ACH as a funding method but did accept payments via debit cards and credit cards, debit cards were the more popular payment method. They were used approximately 71% of the time versus credit cards, which were chosen 29% of the time.

Insight #5: ACH was the most popular payment method for Recurring and AutoPay transactions

For users that scheduled their payments using Orbipay EBPP’s Recurring (due dates and payment amounts chosen by the customer within the client’s parameters) or AutoPay (automatic payments with due dates and payment amounts set by the client) options, ACH was the payment method of choice. ACH payments accounted for 67% of all Recurring transactions and 71% of all AutoPay transactions in 2017.

Debit cards were the payment method of choice for One Time payments (single payments that were not part of an ongoing series) at 44%, Invoice payments (payments made toward specific invoices) at 46%, and Payment Plans (payments made in installments using parameters set by the client) at 58%.

Credit cards saw their highest usage for Invoice payments (34%), although debit cards were still used more often (46%).

Insight #6: Customers’ choice of payment method varied depending on the payment channel used

ACH was the most popular payment method for Web Portal transactions (payments that required a login via User ID and Password) at 71%. However, debit cards were used most often across all other payment channels analyzed:

  • Telephone-based Interactive Voice Response (IVR) – 62% of total payments made by debit cards
  • Guest Payments (online payments that didn’t require a login via User ID and password) – 44% of total payments made by debit cards
  • Agent (agent-assisted payments) – 49% of total payments made by debit cards

Credit cards experienced their highest usage for Guest Payment transactions (no login required) at 28%, although debit cards were used more often.

Insight #7: ACH was the payment method of choice among many industries…but not all

Across all industries analyzed, ACH was used most often for Real Estate & Construction (82%), Manufacturing & Distribution (74%), and Government (69%) payments. The Utilities, Insurance, and Financial Services industries also had more than 50% of their payments funded via ACH.

Debit cards were used most often in the Education (55%), Banking (54%), and Healthcare (53%) industries. Credit cards experienced their highest usage for Education payments at 34%, although debit cards were still used more frequently.

Part 2 of this series will examine 2017 trends in payment options including AutoPay, One Time, and Recurring payments.

Alacriti Blog

Forget the Login with One-time Bill Payments

As more consumers transact with businesses online, there’s also managing more user accounts than ever before. In the US alone, there’s an average of 130 user accounts registered to each email address.

User accounts can give customers access to advanced features and functionality that enhance their interactions with businesses, especially for billing and payments. For example, online accounts can give customers that receive regular monthly bills the option to save funding sources and schedule payments via recurring or autopay transactions. User accounts also give customers the opportunity to view payment history and sign up for bill-related alerts and notifications.

But not all customers need the bells and whistles that a user account can provide. For example, a patient might receive one bill per year from their healthcare provider for an annual checkup. Or an auto insurance policyholder may pay their annual premium in full when the policy renews. In these situations, it’s likely that a paper bill is being issued to the account holder in advance of the payment due date.

Just because these customers receive paper bills doesn’t necessarily mean they want to go through the hassle of making in-person payments or writing paper checks. On the other hand, they might not be inclined to create user accounts to make electronic payments on bills that are issued infrequently. How can your business encourage electronic payments from customers that receive paper bills without requiring them to create a user account?

One-Time Guest Payments

An electronic bill presentment and payment (EBPP) solution can help by offering quick and easy one-time guest payments. This option gives customers a simple, user-friendly way to make online payments without needing to create user accounts. In doing so, it helps bridge the gap between the manual experience of receiving paper bills and the digital experience of making electronic payments, without the extra steps of creating (and managing) User IDs and Passwords.

Here’s an example of how one-time payments work:

1. Your customer receives a paper bill with the amount due, due date, and a link they can visit to make a one-time electronic payment.

2. Depending on your business’s configuration, the customer enters specific information to authenticate their account. For example, your business can require the account number printed on the bill plus the five-digit ZIP code. The customer enters the required information and, if the information matches what is on file, is taken to a screen where they can make a one-time payment.

3. The one-time payment screen displays the account holder’s information, payment due date options (same-day or future-dated), and amount to be paid (current balance, minimum amount due, etc.). Customers make their selections and enter their payment method with the option to save that funding source for a future session.

4. The user reviews the payment, submits it, and is taken to a confirmation screen. A separate confirmation is sent to the email address that’s either on record or provided during the payment process.

The Bottom Line: Consumers are managing more online accounts than ever before. One-time guest payments can simplify the bill payment process by giving customers an easy way to make online payments without needing to create user accounts. Doing so can help bridge the gap between paper bills and electronic payments, delivering a better customer experience.

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7 Benefits of Kiosk Payments

While it may seem like the whole world is moving toward online transactions, many consumers still prefer the convenience and immediacy of in-person bill payments. This can be especially true for businesses that serve a significant amount of unbanked or underbanked customers. These customers might have limited access to bank accounts, credit cards, and debit cards, making online bill payments impossible.

Although in-person payments have their benefits, the staffing and operational costs associated with them might be too steep for some businesses to absorb. This is where automated self-service payment kiosks can be a useful tool in offering a broad range of options to your customers, no matter how they prefer to pay.

Payment kiosks mirror the experience that most consumers are familiar with at ATMs, facilitating quick, easy, and on-demand bill payments. Here are seven key benefits that self-service payment kiosks can provide as part of an overall electronic bill presentment and payment (EBPP) solution.

1. Facilitate bill payments all day, every day

Payment kiosks allow your customers to make bill payments at times that are convenient for them. By automating the process, you no longer need to worry about the staffing concerns and operational costs associated with accepting in-person payments.

2. Place kiosks indoors, outdoors, or both

Kiosks can be placed inside, outside, or a combination of the two via a “through the wall” placement. You choose the location or locations that make the most sense for your business, whether that’s on or off your business’s premises.

3. Accept cash payments

Payment kiosks are an easy way to accept cash for your customers’ bill payments. Cash can be deposited into the kiosk via bill acceptors that quickly and accurately record the amount presented. In addition, payment kiosks can make change for your customers, avoiding the challenge of applying overpayments and credits to customer accounts.

4. Assist customers in multiple languages

Payment kiosks can be configured to support transactions in multiple languages, providing a better experience for customers that prefer or require a multilingual interface.

5. Accept credit card, debit card, and ACH payments

In addition to accepting cash payments, payment kiosks can also support credit card, debit card, and ACH transactions. EMV chip card readers can provide an extra layer of security for card transactions.

6. Verify your customers

Payment kiosks can verify the identity of your customers by scanning their driver’s licenses and/or a QR Code. Doing so can facilitate a highly customized, error-free experience for kiosk users.

7. Integrate to your biller system of record

Kiosk transactions can be easily integrated to your EBPP solution, giving your business a top-down view of all bill payment activity regardless of the channel used. It can also give you the flexibility to pull reports specific to kiosk transactions, so you know when, where, and how your customers are making in-person bill payments.

The Bottom Line: Not all customers prefer online bill payments. Some might want (or need) the ability to make these payments in person. Self-service payment kiosks can help facilitate and automate these transactions as an extension of a full-picture EBPP solution.

Alacriti Blog

3 Tips for Painless Health Insurance Payments

Health insurance premiums are among the most critical payments that consumers make. Timely health insurance payments can both initiate coverage and continue benefits for underlying members. On the other hand, missed premium payments may put health insurance benefits in jeopardy and even lead to loss of coverage.

Unfortunately, health insurance bills can get lost in the shuffle of other monthly bills, especially for members receiving care from multiple healthcare providers. There are a variety of payments to keep track of when it comes to healthcare, including co-payments, deductibles, and health insurance premiums. This may leave members unsure of the amounts they owe, when those amounts are due, and who they need to pay.

An electronic bill presentment and payment (EBPP) solution can help members make on-time health insurance premium payments and encourage them to stay current on their policies. Here are three features an EBPP solution can offer to help make premium payments as painless as possible for health insurance members.

1. Accept and process binder payments seamlessly.

The first payment that a member makes to secure health insurance coverage is often referred to as a binder payment. Binder payments can be a headache for health insurers because there is no existing policy number or member ID to which they can link that payment.

An EBPP solution can help process binder payments seamlessly by creating member records in real time, as part of the enrollment process. It can also allow health insurers to process and settle binder payments separately from premium payments, while providing the ability to automatically link an application ID to a member ID once it’s created.

2. Provide flexible payment options.

Health insurance can be a significant expense for members. Offering a variety of payment options can help them better manage this expense, allowing them to align premium payments with a schedule that best fits their personal needs.

For example, some members may have the funds to make one-time annual premium payments in full. Doing so can help them avoid late payments and ensure coverage for the entire year. These members may want to take advantage of a yearly AutoPay option, so they can schedule future payments automatically.

For others, recurring payments may be a better option. Recurring payments let members determine the amount and frequency of premium payments, so they can better align these expenditures with their paycheck cycles. For example, a biweekly payment can be made for half of the monthly amount due, helping members allocate that cost into more manageable increments.

A payment plan may also be a valuable option for members. This allows the health insurance company to determine the frequency and amounts with which members can make payments, giving members the flexibility to pay their premiums over time.

3. Give members the ability to customize alerts and notifications related to their health insurance premium payments.

Once members choose a payment option that best fits their needs, an EBPP solution can also allow them to opt-in for alerts and notifications sent by email or SMS text message. This proactive communication can help keep them up-to-date on the status of their policies and encourage them to make on-time premium payments.

The Bottom Line: Health insurance premiums are some of the most important payments consumers make. An EBPP solution can offer seamless ways to process binder payments, schedule ongoing transactions, and keep members up-to-date with alerts and notifications.

Alacriti Blog

The Case for Flexible Mortgage Payments

Obtaining a mortgage can be one of the most significant financial decisions that people make in their lives. And securing these loans often entails a painstaking process that involves lengthy applications, credit score checks, and real estate appraisals. Once homeowners secure a mortgage, on-time loan repayment is critical. Account delinquencies and missed payments can result in serious financial consequences, including costly foreclosures and damaged credit scores.

Recent data reports that 65% of American homeowners have a mortgage, with total mortgage debt estimated at $9.9 trillion. Given the scope of these numbers, it’s safe to say that many, many Americans are responsible for making sure their mortgage payments are submitted in a timely manner. This is where a sophisticated and flexible electronic bill presentment and payment (EBPP) solution can streamline mortgage payments for both homeowners and mortgage servicers alike.

How can a flexible EBPP solution streamline mortgage payments? Here are three ways.

1. Send alerts and notifications to the palms of your customers’ hands.

An EBPP solution can send your customers alerts and notifications about their mortgage accounts via text messaging and email. For example, a notification can be sent when the bill is ready to pay, and an alert can follow if your customer is close to their due date. Giving them options for how they want to receive account communications can increase the likelihood of on-time mortgage payments.

2. Accept mortgage payments anytime, on any device.

Mortgage holders will have different preferences for how they want to pay their bills. Some might prefer to send a check in the mail, while others will want to make payments on their mobile devices. Advanced EBPP solutions can even facilitate mortgage payments on emerging channels, like messaging apps and through intelligent personal assistants like Amazon Alexa. Payment preferences will evolve as new channels emerge, making a flexible EBPP solution critical for keeping up with the changing needs of your mortgage customers.

3. Provide options for versatile payment schedules.

Punctual mortgage payments are critical to the financial health of your customers. An EBPP solution can provide a variety of options to make payments on a schedule that best fits their individual needs. For example, payments can be made automatically with a set amount on a specific date each month. Or customers can opt for one-time payments that let them control the date and amount they pay. Your company can even provide customers the option of a biweekly payment schedule (through recurring payments) that might allow them to pay their loans off even faster.

The Bottom Line: Timely bill payments are critical for healthy mortgages. Give your mortgage customers access to an EBPP solution that sends proactive account communications, empowers them to make payments across a variety of channels, and gives them options for how they schedule their payments.

Alacriti Blog

EBPP Glossary: 11 Terms to Know

Electronic bill presentment and payments (EBPP) can sometimes feel like a swirl of acronyms and industry jargon. The first step toward a deeper comprehension of EBPP is a better understanding of the terminology associated with it. We created this shortlist of 11 commonly used terms to help get you started.

EBPP

An acronym for electronic bill presentment and payments, EBPP refers to the technology that allows organizations to present bills to their customers and accept payments for those bills. For example, Orbipay EBPP is a solution used by companies across a variety of industries (auto finance, banking, healthcare, and insurance, for example) that notifies customers when their bills are due, presents the details of those bills, and accepts payments to settle the associated balances.

Merchant

A merchant is an individual, business, or entity that sells goods and/or services for a profit. In EBPP, the term merchant is interchangeable with biller.

Payment Channels

A comprehensive term for the various outlets that customers can use to make bill payments. Payment channels may include mail, walk-in, agent, web/mobile, interactive voice response (IVR), messaging apps like Facebook Messenger, and intelligent personal assistants like Amazon Alexa and Google Assistant.

Payment Options

Refers to the options that dictate the frequency of bill payments made on the underlying account. Payment options can be broken down into two sub-categories:

  1. Single Payments including One Time, Balance Reload, and Skip-A-Payment
  2. Repeating Payments including Recurring, AutoPay, and Payment Plans

Payment Methods

An umbrella term for the types of payments that customers can use to pay their bills. This may include cash, personal checks, ACH, credit cards, debit cards, and prepaid cards.

ACH

The Automated Clearing House (ACH) is an electronic network managed by NACHA that facilitates financial transactions including both credits (direct deposit and payroll, for example) and debits (bill payments, for example). The ACH network was created to support the electronic exchange of these transactions between participating institutions in the United States. A typical application of ACH for bill payments is the customer providing the routing and account number of their bank account to the biller, and the biller then pulling the funds from the customer’s account to settle the balance.

Card Networks

The card networks are comprised of American Express, Discover, Mastercard, and Visa. These companies maintain the networks that process payments between payment card issuers (often banks and credit unions) and merchant banks by charging a fee for each transaction. It’s important to note that Mastercard and Visa don’t issue their own payment cards, but American Express and Discover do.

Interchange

Card transactions have an associated interchange fee that is calculated using various factors including the type of card, the merchant accepting it, and how the payment is processed (ecommerce, EMV chip, magnetic stripe, etc.). The interchange fee is paid by the merchant to the company that issued the credit card and is usually calculated as a percentage of the sale plus a flat fee.

Convenience Fees

A convenience fee can be charged by a biller for using an alternative payment channel, or one that is not standard for the biller. The convenience fee must be a flat fee and disclosed to the customer in advance. For example, a local government’s standard payments may only include counter payments and mailed payments. If so, they might be able to assess a convenience fee for accepting online payments.

PCI DSS

PCI DSS is an acronym for the Payment Card Industry Data Security Standard. The term refers to a set of data security standards applicable to all organizations that store, process, or transmit cardholder data. This standard was created to protect cardholders and the personal data they transmit when making payments. If merchants are not compliant with PCI DSS, they can face stiff fines and penalties from the card networks that are responsible for enforcing PCI DSS.

Chatbots

Chatbots, also referred to as bots, are technology powered by artificial intelligence that simulate human conversation. Common chatbots include Amazon Alexa, Google Assistant, and Apple’s Siri. In EBPP, chatbots can be deployed via messaging apps and intelligent personal assistants to answer account inquiries, resolve issues, and pay bills.

Alacriti Blog

5 Steps for Simplifying Utility Payments

Utilities are one expense that people can count on, whether it’s their electric, gas, or water bills. Paying these balances on time can mean the difference between a household running smoothly and the risk of losing critical services. To help prevent inconvenient shutoffs, utility companies are tasked with delivering bills to their customers that are timely and actionable, while also providing easy ways to pay.

Utility companies often deal with high volumes of payments sent through the mail or called in over the phone. Solutions have evolved to help handle these payments, from dedicated call center reps to remittance processing systems and bank lockboxes. However, there are operational efficiencies that can be gained from moving these time-intensive payments toward electronic channels.

The right electronic bill presentment and payment (EBPP) solution can help encourage online payments, provide critical bill reminders, and adapt quickly to the changing needs of utility customers. Here are five ways utility companies can simplify billing and streamline payments with the right EBPP solution:

  1. “Text me when my bill is due.”

Paper bills are still undeniably popular. It’s estimated that in 2018, 66% of household bills will be mailed to their recipients. But customers are increasingly looking for electronic reminders that can either be used in conjunction with or as a replacement for, their paper bills. E-bills, email reminders, and text message notifications can put your bills right at your customers’ fingertips, encouraging them to make their payments as soon as they know their balances are due.

  1. “Let me pay my utility bills on my mobile device.”

Technology has streamlined customers’ interactions with retailers and service providers, and they are increasingly looking for this convenience when it comes to paying their utility bills. A robust EBPP solution can offer a consistent, easy-to-navigate bill payment experience across all digital channels, from desktops to mobile devices. It can also give customers the ability to make one-time guest payments or create user accounts that provide access to more robust features.

  1. “Give me more options than just writing a check.”

Simplifying payments means giving customers the option to pay their utility bills with the payment methods of their choice. While some might prefer dropping a check in the mail, others might want to set up ACH transactions using their bank account information or use a debit card. Some might even want the convenience and perks of using a credit card. An EBPP solution can support multiple payment methods that make sense for both your utility company and your customers.  

  1. “Let me coordinate my utility bill payments with my paycheck cycle, which is every two weeks.”

Continuity of service is critical for your customers. Some might be looking for the flexibility to align utility payments with their paycheck cycle, so they don’t run the risk of having insufficient funds when their bills are due. EBPP solutions can give your customers the flexibility to pay portions of their bills on a recurring basis to help them better manage their finances and keep their accounts in good standing. Automatic payments can also be a convenient option for your customers, allowing them to set up their payment preferences with the peace of mind that their payments will be made automatically, without the risk of service interruption.

  1. “I’m managing more of my life through my intelligent personal assistant. I want to pay my utility bills with it, too.”

As technology evolves, so do payments. Chatbots are popping up everywhere, giving customers the ability to converse naturally through channels like Facebook Messenger and Amazon Alexa to check account balances and pay bills. The right EBPP provider will be able to provide not only the payment channels that customers are looking for today, but also adapt easily to the payment channels of the future.

The Bottom Line: Utility customers are looking for a bill payment experience that’s on par with what they get from their favorite retailers and service providers. The right EBPP solution can provide billing options, payment methods, and payment channels that deliver a modern customer experience.

Alacriti Blog

NACHA PAYMENTS 2018 Recap

Alacriti was honored to participate in NACHA’s PAYMENTS 2018 conference held April 29 – May 2 in San Diego. From the exhibit hall and breakout sessions to hallway chitchat, the conference truly embodied its theme of Faster Payments. It seemed as if everyone was abuzz about the promise of speedier payments whether through Same Day ACH, Zelle, or RTP.

Artificial intelligence (AI), machine learning, and chatbots were popular topics in many of the educational sessions throughout the event because of the promise they hold for making payments faster and more frictionless than ever. We were honored to present on these subjects in our breakout session, “Simple, Personal & Seamless: The Payments Experience in the Age of Connected Devices.” Alacriti’s Senior Vice President of Product Management, Stuart Bain, was joined by Jeff Pauly, Senior Product Manager at Bank of America, for a discussion on how connectivity and technology are changing the payments experience.

Our speakers opened the session by illustrating how technology has become transformative in every aspect of our lives. From listening to music and getting directions, to hailing rides and tracking key health statistics, there is seemingly no aspect of our lives that hasn’t been touched by technology. This always-on connectivity can be found in everything from wearable technology to smart home devices. In addition, messaging apps are changing the way we communicate, voice computing is making our interactions with technology more natural than ever, and chatbots powered by AI can automate everyday tasks like never before.  

So, what does this mean for payments? Our speakers see AI empowering more convenient, personalized, and faster payments experiences. As they explained to session attendees, “AI allows customers to make payments in seconds rather than minutes.” They walked the crowd through use cases of payments powered by Ella, our payments chatbot, via Facebook Messenger and Amazon Alexa. These types of seamless, conversation-powered experiences are becoming increasingly important to consumers, especially among younger generations. Our speakers emphasized that “Customers, especially Millennials, expect a conversational experience.”

The session then turned to the topic of customer service. As our speakers explained, “AI’s primary purpose is to create business outcomes that aren’t possible just by adding more people to the equation. AI lets you enhance the customer experience by logging which types of questions customers are asking and delivering greater personalization.” They emphasized the idea that AI is not meant to replace workers or their jobs. Rather, AI allows companies to create a scale that could previously only be accomplished by adding more employees. Using AI, businesses can now empower their staff members by making their jobs faster and more efficient than ever.

At the end of this session, we headed over to the Innovation Hub in the exhibit hall where we participated in the NACHA Challenge. Stuart walked the crowd through Alacriti’s proposal for enabling ACH usage for business and consumer payments that don’t require bank routing numbers or account information. Our proposal featured a solution that supports the creation of DDA tokens in a user-defined format or Virtual DDA, implemented as a shared blockchain network.

We thank everyone at NACHA for hosting PAYMENTS 2018 and our session attendees who contributed thoughtful questions and feedback. We look forward to seeing you again next year!

Alacriti Blog

Debit Cards, Credit Cards, and Bill Payments

Credit cards and debit cards may look the same, but there are important differences between the two. These differences not only affect the bill payment experience you deliver to customers, but they can also impact your business’s bottom line. Let’s examine the major differences between these two payment methods and how they can impact your billing and payments program.

Credit cards

It might seem obvious, but credit cards are just that – they extend a line of credit to cardholders, so cardholders can purchase goods and services and pay for them over time. Credit cards are typically issued by banks, credit unions, retailers (think department stores and gas stations), and directly by credit card companies such as American Express. The cardholder agrees to the associated fees and interest rates associated with the card and pays a minimum amount (or more) on a recurring basis, usually monthly. Many credit card products also offer rewards programs, which allow account holders to rack up points and rewards including free merchandise, cash back, and travel perks.

Credit card issuers are distinct from credit card networks, which include Mastercard, Visa, American Express, and Discover. These four companies operate payment networks that connect the banks that issue credit to consumers (issuing banks) and the banks that collect money on behalf of merchants (acquiring banks). The card networks “run the rails” between these entities, making sure that customers have enough credit before a purchase is approved, and wiring money between the various entities. Businesses will typically display logos for the card network brands they accept – either at physical storefronts or on their online checkout pages – to communicate the types of payment brands that customers can use at their establishments.

Debit cards

The primary difference between debit cards and credit cards is that debit cards withdraw funds directly from the cardholder’s bank account. Because funds are extracted directly, debit card cardholders do not have the opportunity to pay for goods and services over time. While debit card transactions are generally limited by the amount of available funds in the underlying account, the time lag associated with the transfer of funds can open customers up to the possibility of overdrawing their accounts.

Debit cards are generally accepted wherever credit cards are, and in-person payments can be completed with either a signed receipt (signature debit) or by entering a personal identification number (PIN debit). In addition, debit cards typically give cardholders access to their bank accounts at ATM machines and certain debit card products may allow them to receive cash back at specific retailers.

Costs of acceptance

For businesses that accept payments via credit cards and debit cards, the single biggest difference between the two is the cost of acceptance. Credit cards have fees associated with them that the underlying merchant must pay per transaction.

There are three major fee categories for credit card transactions:

  • Interchange – interchange is paid to the credit card issuer and is typically calculated based on a percentage of the total sales price plus a flat fee; interchange is not one set rate and can vary based on factors including card type, merchant category code (MCC), and processing type (chip/swiped, keyed, online, etc.)
  • Assessments – these fees are paid to the card brands (Mastercard, Visa, Discover, American Express) to maintain the payment operating network, fund marketing programs, etc.
  • Processor fees – these are the fees that merchants pay to their payment processor to provide authorization and settlement services on their behalf; these fees are determined directly between the merchant and their payment processor

This is not an exhaustive list, and there are other fees that can apply depending on the merchant and the nature of their transactions. However, a merchant will typically pay an average of 2.0-2.5% of the total sales price in credit card fees per transaction.

The fee structure for debit cards is different. When the Durbin Amendment was implemented in 2011, debit card interchange for large issuers was capped at $0.21 plus 0.05% of the transaction (and an additional 1 cent to account for fraud protection costs). This is a simpler fee structure and can be significantly less expensive for merchants depending on the nature and size of their transactions.

Credit cards, debit cards, and bill payments

Customers may have specific reasons for choosing a credit card or a debit card for their bill payments. For some, it might be more convenient to pay monthly expenses like utilities, mortgage payments, and auto insurance via a debit card. This can help customers better manage their budgets and keep a close eye on their personal finances. For these customers, automatic payments can be a valuable billing option so they have peace of mind that they’ll never miss a payment.

While debit cards might make sense for some transactions, credit cards can come in handy for bigger ticket items that need to be paid over time. For example, if a customer has a large medical bill from a healthcare provider that they can’t pay in full, they can charge it to their credit card and pay it off over time. This is an example where flexible billing options like recurring payments and payment plans can help your customers pay their bills without having to take on the interest rates and fees associated with revolving credit card debt.

The Bottom Line: Both credit cards and debit cards are convenient ways for your customers to pay their bills. It’s important to understand the differences between the two, including the fee structures for each. Consider how billing options like automatic payments, payment plans, and recurring payments can work together with debit cards and credit cards to provide the best experience for your customers.

Alacriti Blog

The Elegant Future of Payments

Bill presentment and payments have undergone monumental changes over the past 15 years. Electronic billing has helped both businesses and consumers “go green”. Balances can be paid easily online through user accounts and one-time payment options, reducing the dependency on paper checks. Add to that the power of mobile devices to make payments anytime, anywhere. So, what’s next on the horizon for bill payments?

Alacriti’s CEO, Manish Gurukula, recently talked with PYMNTS.com’s Karen Webster to discuss how voice-activated user experience (UX) is the next big thing in bill payments.

In the midst of all these changes related to bill payments, chat-based interfaces – including those using voice activated commands – are emerging to streamline the bill payment process even further. Alacriti was at the forefront of this sea change, developing a chatbot named Ella that’s powered by artificial intelligence (AI). Customers communicate with Ella naturally, via Facebook Messenger, to perform common bill-related tasks like making account inquiries and paying balances.

But conversation is not limited to messaging platforms. Alacriti is looking ahead to the next generation of transactions powered by conversation on voice platforms like Amazon Alexa and Google Assistant. “As we were contemplating how to move our text-based Messenger chatbot capabilities to voice and Google [Home] and Alexa, we had to first answer a few key questions: Where does the user data reside, how is it handled [and] how is the flow from one endpoint to another managed?”, Gurukula says in the interview.

Learn how Alacriti is answering these questions by reading the full article. In it, Gurukula also discusses Alacriti’s solutions for both one-time and recurring payments, and how they protect the most sensitive of data. He goes on to examine the inherent potential of intelligent personal assistants like Amazon Alexa and Google Assistant to offer better, more elegant ways of interacting with consumers and streamlining bill payments.

READ THE ARTICLE.