The benefits of electronic bill payment and presentment (EBPP) for local governments and community members are driving efforts to increase and improve EBPP functionality. As paying by cash becomes less popular, EBPP is clearly the future of revenue collection. In fact, according to the Federal Reserve’s recent research (2022), “The number of core noncash payments grew by a larger amount from 2018 to 2021 than in any previous Federal Reserve Payments Study measurement period since 2000. Specifically, the number of noncash payments grew by 30.7 billion, increasing to 204.5 billion in 2021.”

Members of your community expect to be able to pay their bills whenever and wherever they are, whether it’s from their home office, while vacationing, or anywhere in between. They want to conveniently pay utility bills, court fees, property taxes, tax bills, parking tickets, license and permit fees, and more.

To improve payment operations, city and county governments are looking at ways to streamline processes and increase community adoption of these efficient payment methods. Here are five things to keep in mind when engaging with technology providers about simplifying your payments ecosystem to help you meet the needs of your community.

1. Cost

The good news is that your payments solution vendor should offer you a flexible fee structure with no subscription or licensing costs for software. In turn, you can provide predictable rates for your electronic bill payers—whether you pass the fees along or absorb them. Keep an eye out for hidden fees such as statement fees, annual fees, gateway fees, or monthly minimums. Ensure you have a full understanding of contract terms and any additional fees. It’s important to understand that the subject of fees is complex. For example, local regulations can dictate how fees are assessed. A vendor with experience in the public sector will work with you to develop a fee structure that meets your community’s unique needs and budget requirements.

2. Security and Compliance

Data security is top of mind for both consumers and local governments. To prove that industry standards for security are being met, a vendor should be compliant with the Payment Card Industry Level 1 Payment Application Data Security Standard.

Your vendor should be a registered merchant service provider (MSP) or a certified payment facilitator equipped to handle all aspects of the payment process, including onboarding, shopping cart, checkout, fee handling, and receipts. This advantageous bundling of tasks reduces the number of entities required to handle residents’ sensitive information and simplifies operations.

3. Technology Scope

It should come as no surprise, but fewer siloed or disparate solutions result in more control for government agencies. Put simply, a single payments solution simplifies your workflow. You only need to work with one vendor, streamlining software integrations and simplifying PCI compliance. Ideally, your vendor offers a proven EBPP hardware/software/compliance solution with native integrations to your core systems. Your provider should handle all aspects of the payment process, including onboarding, payment support, reconciliation, and hardware. An integrated solution means financial data is uniformly updated throughout the organization. Also, an integrated solution powered by Amazon Web Services (AWS) enhances scalability, security, and reliability—vital components of a payments system.

4. In-Person Payment Needs

The preferred vendor will provide cashiering solutions, enabling over-the-counter transactions to further simplify your payment operations. An integrated cashiering solution standardizes your collection process and creates a single entry point for payments, providing greater control of the workflow and making certification reporting easier.

5. Payer Adoption

An ideal vendor will assist you with strategies to let your community know about EBPP options and benefits. From providing tips about email and social messaging to advice on bill inserts, an experienced vendor will work with you to build participation. Of course, customer adoption is ultimately related to convenience and usability. A payment system should include the following for maximum engagement:

• A user-friendly, public-facing portal that makes bill paying easy and convenient.
• Real-time payment processing that reflects updates to payer account balances immediately.
• Options for payers to set recurring payments and schedule payments for a future date.
• Acceptance of various payment methods, including credit cards, e-checks, and digital wallets.
• The option for customers to pay as a guest for quick single payments or as a registered user to access history and streamline account connectivity.

Realizing the Benefits of EBPP

As we’ve seen, EBPP functionality is playing an increasingly important role in revenue collection. As the Federal Reserve noted in 2022, “The number of card payments grew by 25.9 billion from 2018 to 2021. With 157 billion payments in 2021, card payments accounted for approximately 77 percent of noncash payments by number.”

And the benefits for local government are clear. Cities and counties both large and small are cutting expenses, serving the public more efficiently, and improving resident satisfaction by taking advantage of EBPP functionality.

Choosing the right vendor will help you maximize the benefits of EBPP. A vendor with experience in the public sector will better understand your unique requirements. This vendor can combine proven public sector experience with a payment solution that meets your needs today and in the future.

Sponsored content powered by Tyler Technologies.

 

 

 

 

TYLER TECHNOLOGIES develops software solutions with an insider’s understanding of the public sector and decades of industry experience. Tyler’s broad solution and product offering empowers you to deliver better and faster assistance to the public—greater transparency and accessibility, sustainable office practices, secure data that’s easy to manage and maintain, and faster results.

Join Tyler Technologies for a free webinar on November 15, It Doesn’t Have to Be Complicated: Transitioning to Digital Payouts, about how to move your jurisdiction towards digital payment processes.