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Online bill pay is a service that allows you to set up electronic payments for your bills digitally. Most importantly this helps you save time, reduce paperwork, and makes life easier. Learn here how to pay your bills in a smart way
Optimizing every node of your business financial system is a must. Given that bills make a huge part of your monthly expenses and mean a lot to your business sustainability, you really want to make billing less resource-taking.
Fortunately, intelligent billing is already implemented by various platforms and includes a set of tricks called to save time and company funds. Let’s take a closer look at the topic with billing experts.
1. How to Make an Online Payment
Electronic payments through online payment methods is a lot easier than it may seem, regardless of the payment purposes:
- Open an online banking account – If you already have a business bank account, you can already verify your online banking account. It’s already a secure option to make most kinds of electronic payments, including automatic recurring payments.
Depending on your bank, you may receive particular benefits for using online payment methods such as online banking for business.
- Use a billing system – Billings systems are one of the most popular online payment methods where you make electronic payments via a platform, which is designed specifically for business purposes and lets you integrate various solutions into your company’s CRM, is much more convenient than online banking solutions.
Especially if you have to deal with a large number of transactions every month.
- Pay with business credit cards – Having a good credit score is very important for any business, so it’s recommended to make regular payments with a business credit card and close the debt on time to give your business credit score a boost.
Needless to say, it is also important to know how to pay your credit bill on time. It will help you a lot when it comes to spending a large amount of money on certain improvements or renovations. That’s usually impossible without a substantial loan, so you should prepare an opportunity for your company in advance.
- Make sure that your connection is secure – Online payment methods that happen through any public network is a big “no.” If there’s no way to avoid payments on the go, they must be done via cellular Internet.
When you make use of various online payment methods on your computer, make sure the website is protected with an HTTPS protocol (a lock icon near the link). Otherwise, your personal information (credit card numbers, passwords, etc.) can be stolen.
- Use Electronic Federal Tax Payment Services (EFTPS) – EFTPS provides you with fresh federal tax forms for any purpose and lets you exchange the information and money with the IRS or another responsible organization in your country.
2. Tips to Pay Your Bills Effectively
Regardless of the online payment methods you choose to process your bills, you should remember these essential tips to make things the right way:
- Schedule your payments – it’s highly recommended to schedule all electronic payments through online payment methods 3 days before they are due. This way, you will ensure that you choose the right date to make the payment if there are weekends or holidays.
Although most online payment methods can be made on any day if the payment is recurring and automated, you still have to consider this for payments that can be made only during official working days.
- Set reminders – this point goes right after scheduling payments and lets you ensure that you don’t forget to make a payment and don’t get a late payment fee.
It’s recommended to set reminders even for automated online payment methods as automation requires supervision to exclude system failure and to change the payment amount in time if needed.
- Verify payments – again, even if a payment is automated, you have to ensure it’s done and reflect that fact in your CRM. If you use smart automated online payment methods, you can integrate them right into your CRM and have all the data entered automatically.
3. Online Payment Method Are Processed Faster
Online payment methods are usually instant or take less time than physical payments.
While there’s no way to pay for online services with cash without going out to find the nearest terminal and paying a huge commission, making electronic payments from a smartphone or computer doesn’t tie you up to a certain location.
Considering payments to federal organizations, such as the IRS, you can make your payments reach these organizations a lot faster and receive error notifications earlier. That is extremely important for taxes because mailing the IRS and getting a reply by mail can take weeks, while e-mail replies and notifications are delivered immediately. This applies to any tax organization worldwide.
4. Benefit from Using Specialized Billing Systems
Although modern online payment methods provided by banks are quite good, they don’t provide the needed level of flexibility for business entities.
If you register your company on a trusted smart billing platform, you can streamline most of your transactions and secure the entire system by integrating a custom API into your CRM. The benefits of integrating such a solution include:
- Fraud protection – billing fraud schemes are aimed at stealing cash from organizations by submitting fraudulent invoices.
Although such schemes are very costly, they are also very common and may attack your company at any time. That’s where a smart integrated billing solution that allows online payment methods will help you identify fraudulent activities before they go too far.
- Assistance with documentation – having a convenient and secure cloud-based solution with all your business documentation stored is a good way to save time. You can have all your documentation stored on a billing platform, which will automatically provide your bank(s) with the needed set of documentation, depending on the current purpose.
- Visa Merchant Purchase Inquiry (VMPI) against chargebacks – chargeback is another common way for fraudsters to steal goods and money from organizations. You need to integrate VMPI in order to halt all the unrecognized purchases and close disputes that are not necessary.
An automatic alerting system will help you with that.
- Payment automation – it’s much easier to deal with recurring business payments if you let the automation do the routine work for you. Billing systems let you create automation for all kinds of payments in one place to simplify regular transactions.
5. Automate Payments for Good
All organizations have a list of recurring payments, which means any company can automate them to save loads of time.
You can set automation rules for any method of payments in any online banking application and electronic payment processing service and be sure that all your fixed monthly, quarterly, and yearly payments are made in time.
This option works well for mortgage payments, online and offline software bundle subscriptions, insurance premiums, salaries, fixed regular investments, and any other payments that have to be done in the same amount and at the same time on a regular basis.
If your business deals with regular invoices, you can process them automatically as well. The entire route from receiving an invoice and to approving a payment can be automated if you set the rules in your invoice processing software or online platform.
6. Is It Safe Enough to Pay Bills Online?
Digital payment companies, online banks and major online payment methods all use strong encryption protocols in their payment software, such as AES (Advanced Encryption Standard) protocols (AES-128, AES-192, and AES-256), and other high-end user data protection technologies and so, have pretty secure payment systems.
Although the AES encryption method alone is already unbreakable, user data theft remains a common problem. However, it’s important to understand that users are guilty of that in the vast majority of cases.
All due to various phishing scams. They involve malicious parties that pretend to be popular banks, and payment service providers and try to obtain users’ personal info to break into their accounts and steal the money. Everyone who has access to your company’s finance must know all the possible scam types to be ready to face them and resist.
Apart from relying on the secure payment systems of digital payment companies, it’s also highly recommended to do the following to enhance the security of your accounts:
- Don’t click any links from financial organizations unless you are 100% sure that they come from authorized parties.
- Don’t share personal and sensitive business information with anyone online and on the phone unless you are using protected channels.
- Always use two-factor authentication to prevent malicious parties from getting into your accounts, even if they have a login and a correct password. It’s currently the best way to eliminate such a chance. The feature is available for all modern services that have any method of payment of any sort.
- Use only a secure connection to avoid data interception. Unfortunately, most if not all public WiFi hotspots that you find in hotels, cafes, and airports are not protected from hacking. The bigger the place, the higher the chances it has some sort of an undetectable data theft program running on particular routers or even entire servers.
No More Papers?
By implementing a smart approach to online payment methods, you can streamline all of your company’s transactions and reduce the number of resources needed for electronic payment processing. Your biggest target should be using payment software that uses automation as it’s not expensive anymore and can be set without any special knowledge.
All you need is to integrate reliable services into your organization’s financial system and let it do the job. Don’t forget about safety and keep up with the latest information to improve your system and request the latest technology of online payment methods available on the market.
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