How Electronic Presentment Works
Electronic presentment is a convenient new idea that makes the giving and receiving of payments for all kinds of services an immediate and simple process. As commerce quickly becomes a more and more paperless activity, it may not surprise you to learn that even the bills and checks that we are used to receiving and sending through the postal system will soon be outdated. Just as written correspondence has largely given way to e-mail and news outlets are turning from newspapers to websites, the way bills are delivered and paid is moving from the mailbox to the computer.
Presenting Bills Electronically
The basic idea of electronic presentment is that a bill for services is either sent directly to a customer’s email account or is posted on a secure section of a website for the customer to view. Obviously, not every company has the capability to set up an electronic billing system and maintain it month by month. A number of outsourcing companies offer electronic billing services, allowing even small companies to offer their customers this convenient payment option through a secure and well-managed online service.
Paying Electronic Bills
For a customer, paying an electronic bill when it is received is as simple as entering his bank account information or a credit card number, plus the exact amount to be paid. Once entered and sent, this information carries the same weight as a physical check. In the past, there were numerous concerns about hacking and misuse of financial information sent online, but today’s billing services are largely secure and even safer than sending the same information through the regular mail.
Benefits of Electronic Billing
Companies that choose to use an electronic presentment system see immediate and significant improvements in the cost of the billing process. The savings on paper, ink, postage, and employee work are great, and many companies choose to capitalize further by making it a point to inform their customers that they are making an effort to “go green.” On the other end, most customers prefer the convenience of paying a bill instantly online.