Have you ever opened your email or went on a website, and the service provider gave you the option to go green. That was a classic invitation to start e-billing.
If you have a business of your own, you might have considered this option too. In today’s world, digital statements and online payments are the norm. While most companies still give their customers the option to receive paper statements, it’s pretty much a thing of the past.
If you’re curious to learn more about electronic billing, take a look at the information below.
What Is E-Billing?
E-billing, also known as electronic billing, is the process of paying and receiving billing statements online. The invoices are generated electronically using computer software.
Not only does it create electronic bills, but the system enables electronic payment as well. Most digital statements are sent to the customer or client via email or a web-based portal.
A company’s website lets payers access their bill online and also manage their account information. An electronic billing system usually offers automated payments and some companies will even discount a customer’s bill if they use this option.
Electronic bills must be submitted using an accepted platform. The National Electronic Payments Association (NACHA) regulates the coding standards for businesses that use digital statements.
There are four parties involved in the billing process that has to follow the standards set by NACHA, which include:
- A customer service provider
- The bill service provider
- The bill payment provider
- Can you consolidate?
Each party is required to have a hand in the invoicing process.
How Does E-Billing Differ From E-Invoicing?
Electronic billing and e-invoicing are similar, but they’re not the same thing. An invoice is just a digital invoice that’s sent to a customer or client.
On the other hand, emailing includes payment options as well. It’s an all-in-one billing and payment system.
For instance, if your utility provider sends you a digital statement, it’ll also include a link for you to make a payment online.
The Benefits of Using an E-Billing System
There are several advantages to using electronic billing. Gone are the days of mailing payments or mailing out monthly statements. Below are the benefits:
Less Paper
E-billing is much better for the environment because there’s no need to use as much paper.
Not only that, but it’s more cost-efficient for companies because they don’t have to buy lots of paper either. The trees can say a big thank you to electronic billing.
Minimal Errors
Electronic billing is automated by a computer system. That means there aren’t as many errors. There once was a time where people had to put together monthly statements, and it caused many more mistakes.
However, digital statements allow businesses to be a lot more efficient.
Quicker Payments
When a customer pays online, they’re instantly notified of whether the payment went through. They’ll also receive an email confirmation and voila, that’s it.
There’s no more waiting days at a time for a company to receive payment by mail. E-billing is also a plus for companies because they don’t have to wait to receive funds.
Convenience
Speaking of quick payments, electronic billing is so much more convenient. Who wants to hassle of going to the post office, when they can simply take care of their bills online?
Plus, companies don’t have to use extra labor for putting together bills and sending them out.
Happy Customers
Being able to make payments online gives customers a little more control over their bills. They have the option to set up recurring payments, ensuring that their bills get paid and they don’t forget.
Not to mention, in this day and age, any company not offering e-billing isn’t very attractive to a client or customer.
B2B
Electronic bills are normally focused around customers, but businesses can take advantage of it for B2B transactions also.
Digital statements can be sent to other companies quickly and easily. Plus, they can make payments online.
What Does an Electronic Bill Look Like?
An electronic bill is simply a digital version of a paper bill. Most statements are submitted in a PDF format so that the customer can save it to their computer for their own records.
It also includes important information like the due date, pay amount, and a list of the taxes and fees. It’ll also include a link to a payment portal.
How Does the Billing Process Work?
Electronic billing systems and digital systems go through a certain flow. An invoice in an electronic billing system typically follows this route:
- Customer billing info is aggregated in a billing program
- The customer’s statement is generated by the billing system
- It’s then transferred to the electronic billing system
- Next, the bill is aggregated and sent to the customer online
- Lastly, the customer receives a statement notification via email
There are two primary types of electronic billing systems used for E-billing, which is biller-direct systems and bank-aggregator systems.
Most electricity providers allow customers to log in to their website to view and pay bills. This is a prime example of biller-direct digital billing.
Some statements can be integrated with a bank’s bill pay system. In these situations, users can log into their banking portal and pay their bills to multiple providers through the same interface. That scenario is an example of bank-aggregator systems.
Is E-Billing Right for Your Company?
Hopefully, this article provides you with enough information to help you understand e-billing. If you’re ready to take your business to the next level, it’s a great option.
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