Utility payment systems allow customers to pay their utility bills using their bank accounts, enabling them to earn credit card points and track spending. Such systems reduce the time required for customer service representatives to manage these transactions, helping them spend more time building trust with customers and resolving complex account issues. They also enable rules-driven collections processes that help improve organizational cash flow and reduce bad debt.
The term “utility payment system” refers to a comprehensive set of technologies and services for processing utility payments of your bank’s customers, including the billing process, customer self-payment options and customer service. These systems allow you to manage the entire life cycle of a customer’s relationship with your bank, from account opening and registration, to payment processing, aggregation and reporting.
When you enter a payment transaction of a customer for a utility service, the system automatically assigns the accounting details and rates defined for that product to the transaction. This is referred to as product-based billing.
This allows you to offer a number of utility payment options that are customized to your specific business needs. For example, you can allow a residential customer to split their electric and gas charges into 12 equal monthly payments. This type of payment option can be particularly useful for customers on fixed incomes and helps them avoid high winter heating bills or summer cooling charges, while also reducing the overall total annual bill amount. Moreover, you can provide your utility customers with a downloadable app that offers convenient self-payment through instant bank account transfer or with a range of other payment methods and advanced features. utility payment system