Don’t Get Hung Up on Phone Payments

Julie Reincke
May 14, 2008 | COMMENTS

The ability to make a payment over the phone is something that consumers have become accustomed to and expect from the retailers and utility and credit card companies they conduct business with on a daily basis. Financial institutions are also increasingly equipped to accept ACH as well as debit/credit card payments for auto, mortgage, and other bank loans. Credit unions, on the other hand, have been slow to add phone payments and are just beginning to dial in to all of the benefits that a phone payment solution has to offer.

Phone payments are emerging as an attractive alternative to drive fee income and provide your members with a fast, flexible user-friendly payment solution. Accepting payments over the phone also allows credit unions to increase collection and processing times.

Consider a collections department that finally gets through to a customer who is late on meeting a payment deadline. If the collections officer can accept payment over the phone, the credit union gets the payment faster and the member doesn't have to hassle with mailing in a payment, resulting in a win-win situation for all.

What's the Hang Up?

There are some misperceptions in the marketplace that phone payments are difficult and costly to implement. Any change to the status quo can be daunting, particularly when you are a credit union that isn't likely to have an extensive IT department or limitless funds to acquire and implement new technology let alone conduct the regular, ongoing maintenance. Does this ring true to your organization?

A Wake-Up Call

The reality is, thanks to new web-based solutions, it's easier than ever for credit unions to implement a low-cost phone payment solution. There are no software programs to purchase as everything is managed in a secure online environment. Even credit unions without an IT person on staff are able to accept payments via phone, as well as originate, research, and edit payments right from their desktop.

Before You Get Out Your Dialing Finger

Before implementing a phone payment solution, following are a few key considerations to keep in mind:

• Look for a partner that can offer you a seamless and complete bill payment solution. As your business grows, you want a partner that can grow with you and offer additional payment services such as IVR, web payments, remote capture, etc.
• Consider the level of reporting your organization needs.
• Ask about risk management and what can be done to reduce your risk of exposure to ACH.
• Make sure the product is regulatory compliant.

Phone payments provide convenience and peace of mind for you and your members. With the new web-based options available today, there is no reason for credit unions to be left on hold with this low-cost way to drive fee income.

Julie Reincke is an account executive with MoneyGram Payment Products, a division of MoneyGram International. Contact her at 503-690-8925 or jreincke@moneygram.com.