The Benefits of ePayments for Insurance Companies
The global market continues to move toward an all-digital economy.
09:07 07 May 2021
As a result, businesses must ensure they are meeting the needs of their customers in this area. The global pandemic of 2020 led to contact-free interactions becoming commonplace. Many people want this to continue even as more people get vaccinated and becoming infected with COVID is less of a risk.
In fact, certain major Fortune 500 companies take cryptocurrency as payment because they recognize more people are using this currency. Although many companies hesitate to go this far when it comes to accepting alternate forms of currency, they must offer contact-free options to remain competitive. Consumers found them to be convenient and want this option available to them in the future.
For example, many people love ePayments for insurance companies. Insurance remains a necessity in today's world, although many people would like to forego their regular payments to these providers. They know the bill is coming due and they must remit payment. With the help of ePayments doing so has never been easier. What benefits will one see with this payment option?
What are ePayments?
ePayments are exactly what you would expect when you hear this term. They serve as an electronic payment option. The business provides the client with a secure payment link, which may be sent through email or text or could be posted on the website in the form of a payment button. With this link or button, the customer enters their payment into the system, knowing that it is secure. This payment can be made any time, day or night, even when the business is closed.
Offering ePayments streamlines business operations. In doing so, the business finds this payment option boosts its profits and client satisfaction. Customers love to have a convenient way to pay bills, as they lead busy lives. They may not be able to complete this task during normal business hours. While many companies accept credit card payments, ePayments offer them a secure online portal so they don't need to worry about their personal or financial information being stolen.
Research shows online bill payment options leads to faster payments. When a person can use the internet to pay a bill, the business receives the payment within 10 days, on average. In contrast, cash and checks can take up to 27 days. Nevertheless, each business must find a payment platform they can customize to meet their specific needs, as this does differ by business and industry.
Today, 56 percent of bill payments are made through the internet. Customers actually expect to see this option when they go to pay a bill. A failure to offer it may lead to a business losing customers. Another option may be to offer auto-pay, so the customer can set up regular payments and forget about them.
In addition to faster payments, companies find accepting ePayments allows them to simplify their record keeping. The business needs to set up an invoice process that provides detailed information, including services rendered, a breakdown of costs, and the customer's case number. Other elements of the process may also be customized, depending on the platform selected.
The insurance company may use the same platform to send out ePayments on behalf of a client. When a claim comes in, multiple providers often need to be paid to handle all aspects of the claim. If the insurance company uses ePayments as a means of paying these expenses, the vendors receive payment faster, which the client is certain to appreciate. They don't have to worry about receiving a bill that the insurance company was responsible for and paid but the vendor hasn't received.
Safe and Secure Payments
With ePayments, clients don't need to share their credit card or banking information over the phone. Everything is handled through the payment portal. Businesses also benefit because their employees aren't tied up taking payments. They can focus on other tasks, such as customer service. Clients can pay their bill at any time, knowing it will remain secure.
As the ePayment platform is virtual, businesses don't need to purchase new equipment to accept the payments. They already have a computer or mobile device and internet service. The business can even require signatures when the customer uses a credit card. Electronic signatures are actually more secure than physical ones, as the insurance company can trace the electronic signature back to the person, their location, and more.
Fraud remains a concern when people pay bills by check. In fact, 74 percent of American organizations were targets of check fraud in 2018, according to a survey of finance and treasury professionals. Financial institutions, however, back ePayments. This means the insurer is exposed to less risk. Less risk leads to lower fees and customers like knowing they are working with an insurer that puts safety and security first. Share this information with customers and see the business grow.
The ePayment platforms integrate with existing systems. As the program is internet-based, there is no issue with it not working with programs already installed. This allows clients to pay their bills seamlessly as well as the insurance company. The problems witnessed with incompatible software programs are now a thing of the past, and every business owner appreciates this. They aren't wasting their money on programs they cannot use and that often could not be returned.
Insurance companies find they benefit greatly by making use of an ePayment system to pay out claims. Doing so eliminates postage fees, ink to print checks, bank fees, and more. Every business likes to increase its bottom line, and this serves as an easy way to do so.
Consider making the switch to ePayments. Doing so benefits both the customer and the business. When choosing a platform, be sure to consider all features and ensure it allows for customization. Companies that do so find they have a valuable tool that helps grow their business in countless ways. Customers love the ease of making payments to the insurer, while insurers love that they can reconcile claims quickly and easily. Learn more today to see if this option is right for your organization.