A new online payment system from EZPaymentservices gives businesses the opportunity to reduce their costs of billing and collection by more than 90%. This new approach eliminates the time-consuming and costly process of sending paper invoices to customers, sending reminder letters and replacements for lost invoices, and recording and depositing checks.
Scottsdale, AZ (PRWEB) September 26 2003--Instead, companies upload their invoices and their customers are immediately notified via email and view the invoices online. The customers can then pay online using true 128-bit SSL encryption in seconds via electronic funds transfer for processing through the United States Federal Reserve Bank. Besides saving the $12 to $17 that the Gartner Group, a top research firm, estimates that it costs to send a paper bill and process a manual check, the time from when the customer makes the payment until the funds are available for use is reduced by one to two weeks. Its also worth noting that online payment with electronic funds transfer, the same method used by Fortune 500 companies, eliminates the need to pay the discount rate associated with credit card payment.
Jules Kaplan, President of EZPaymentservices, estimates that the cost of producing and delivering a paper invoice and processing the resulting payment from a business is over $14.00 when you include the costs of paper, postage and handling*. EZPaymentservices dramatically reduces these costs by allowing customers to view their invoices over the web and make payments directly into the businesss account. Costs are reduced to $0.10 per month to maintain each customer profile, $0.08 for each transaction, and $0.34 for each online payment, for a total of $0.52 per invoice. There is also a one-time bank fee of $295.00 to sign up for the service. See www.ezpaymentservices.com/calculator.html to easily calculate how much you are spending on paper invoicing. Besides these cost savings, cash flow is improved because funds are available to the business four days after the customer makes the online payment, compared to the typical one week for the check to processed, mailed and delivered, one day for the deposit to be processed, and another week or more for the funds to be released by the bank.
EZPayment goes far beyond electronic funds transfer by helping businesses and other companies that bill customers on a regular basis to automate their entire accounts receivable process. They can easily send messages by email to a single customer, all customers that meet certain criteria, or all of their customers. This makes it easy to, for example, automatically send gentle reminder messages to customers whose balances exceed 30 days and to send a sterner notice to those over 60 days. Companies can also review their customer transaction history and payables balances at any time. Companies have the option to charge their customers a small service fee for the convenience of making online payments. By the same token, they can provide their customers with the opportunity to save money by automating their own payment process. Customers can automate the process of paying regular invoices. Companies also have the option of establishing a merchant account that lets customers pay with a credit card at a cost of $0.08 per transaction plus the discount rate of your merchant account.
- Estimated costs of a single conventional paper invoice include $2.50 for preparing the invoice data, $1.50 for printing and stuffing the envelope, $1.10 for mailing the envelope, $0.37 for postage, $5.00 for a reminder call, $1.75 to record the incoming check, $2.05 to deposit the check, and $0.10 for the deposit fee, for a total of $14.37.
For additional information for White Paper on On line Processing and brochure please call 800-220-0468
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