Paperless billing systems provide helpful messaging and payment options
Internet service, utilities, car payments — every month, Americans receive bills for the goods and services they’ve purchased. Historically, these bills were sent on paper and shipped through the mail. However, as more customers rely on the internet and their smartphones, businesses have adopted paperless billing systems to meet them where they are.
Have you ever wondered “What is paperless billing?” Then you’re in the right place. In this article, we’ll explain the basics of paperless billing and how these systems can benefit your business. We’ll also describe the challenges organizations must overcome to successfully implement a paperless payment system.
Adopting a paperless approach is an excellent way to futureproof your business. Read our complete guide to find out what you need to know before you get started.
What is paperless billing?
Paperless billing is the process of digitizing the notifications a business sends to customers or clients. These notifications inform recipients that payment is coming due for services rendered. Typically, these billing cycles are monthly but many businesses send them weekly or quarterly. These terms often depend on the industry or type of service provided.
Commonly, bills are printed on paper and sent to customers through the mail. Customers can then pay with a credit card or check. These payments may be processed online, over the phone, or via mail.
Paperless billing instead sends these notices via digital means, such as:
- SMS text message
- SMS text message
These notifications offer similar payment methods but usually contain links to a website or app where the customer can pay online.
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Potential challenges of paperless billing
Organizations may need to overcome several hurdles before implementing a paperless billing system. Meeting these challenges head-on can unlock additional efficiencies while improving the quality of your business beyond paperless billing.
- Security: Organizations must store and encrypt customer data. Digital communications also provide vectors for cyberattacks.
- Compliance: Digital communication must abide by legal regulations. U.S. law requires clear ways to opt out of emails and text messages. Similar laws apply when doing business in other regions, such as GDPR in Europe.
- Integration: Your current payment solutions may not integrate with all paperless billing systems. Investigate and prepare for any changes in workflow.
- User adoption: Paperless billing adoption has been slow. Only 26% of customers prefer digital billing over mailed notices. Make the benefits of digital communication clear and make it easy to opt in.
Paperless billing benefits
Organizations transitioning to paperless billing systems can see numerous improvements. Benefits may include:
- Reduced expenses: Printing bills requires paper, ink, and envelopes. National paper shortages have made these materials far more expensive. And according to the United States Post Office, standard first-class letters cost $0.66 to mail. Even with bulk business discounts, sending thousands of monthly bills can add up. Digital alternatives can provide similar communication at a fraction of the cost.
- More effective automation: Organizations can send and customize messaging on a customer-by-customer basis. You can also automate reminders and follow-up messages in case customers miss payments.
- More efficient payments: Paperless billing offers conveniences in both messaging and customer payments. Nearly half of all consumers pay bills digitally. By sending paperless payments customers can immediately square up their accounts.
- Rectify errors: Mistakes in physical billing can be expensive. They also take additional time to print and mail to customers. Paperless billing can allow businesses to fix mistakes through follow-up emails or texts at a minimal cost.
- Reduced impact on the environment: The average American consumes over 700 pounds of paper every year. Much of it ends up discarded when no longer used. Shifting to a paperless billing system helps organizations reduce their paper use and carbon footprint.
Did You Know?:PCMagazine described the fi-8170 as “...ideal as a front end for high-powered document archiving applications.” Click here to read the full review and learn why it earned an “excellent” 4 out of 5 rating.
Our recommendation: fi-8170
Those in the market for a document scanner to facilitate paperless billing systems have no shortage of options. We take great pride in having spent the last 50+ years researching, designing, and developing some of the most advanced and powerful electronics in the world, including our professional grade fi Series scanners.
Built to purpose for the most demanding document handling jobs, fi and SP scanners are capable of processing tens of thousands of pages per day at the highest levels of accuracy. Their intuitive integration capabilities with all existing work suites minimize time-to-value for businesses looking to invest in tools that will pay dividends for years to come.
Even paperless offices will encounter paper checks and other exceptions. The fi-8170 is a perfect fit for accounting departments and mailrooms of all sizes. Its 100-page automatic document feeder scans up to 70 double-sided pages per minute. And Clear Image Capture preserves account details at high resolution. Click here to learn more or shop the rest of our production scanner line.
Note: Information and external links are provided for your convenience and for educational purposes only, and shall not be construed, or relied upon, as legal or financial advice. PFU America, Inc. makes no representations about the contents, features, or specifications on such third-party sites, software, and/or offerings (collectively “Third-Party Offerings”) and shall not be responsible for any loss or damage that may arise from your use of such Third-Party Offerings. Please consult with a licensed professional regarding your specific situation as regulations may be subject to change.
