Utility providers make the world tick, providing the essential power for businesses and homes across the nation to run comfortably and efficiently. To maintain these key operations, these utility providers must collect countless payments every month—a task which can be greatly improved by working with a qualified payment processor.
If you lead a utilities business, you know just how complex it can be to detangle operations and choose the right vendor partnerships. In this article, we go through payment processing solutions for utility providers like your business, including the unique considerations for the industry and benefits of outsourcing payment processing.
Businesses that operate in the utility industry have special considerations when it comes to payment processing and the financial factors associated with key business processes. For some utility providers, digitization has been on the back burner in recent years, along with process optimization in the financial sector.
The utility industry is subject to unique compliance requirements and regulations, both on the federal level through the Federal Energy Regulatory Commission (FERC) and on the state level through laws and state regulatory bodies. There are additional tax and accounting regulations that these organizations must follow.
By working with a payment processing partner, utility companies can benefit from improved processes that ensure strong compliance with procedures. These processes can be tied to utility submetering, cost-of-service rates, and more.
Another aspect of digital transformation that utility providers should consider is customer payment channels and the customer payment processing experience. Today’s customers demand a high level of convenience when it comes to using and paying for utilities like electricity, water, natural gas, and more.
There are 26 states with some level of deregulation in their utility market, allowing customers to choose where they get their power and other utilities from. This means that retail energy providers must be much more competitive when it comes to getting and maintaining customers—so delivering a better customer experience when it comes to payment processing can be a huge advantage.
At FirsTech, we work with public and private utility providers and related businesses across the country, including government entities. By implementing a unified utility payment processing system, our clients are able to address the unique considerations of the utility industry while improving customer satisfaction and streamlining process efficiencies.
There are countless benefits to working with a payment processor to handle utility billing management and beyond. Here are the top five benefits of working with a partner like FirsTech.
When utility providers digitize payment processing, they can see benefits across departments, including simplified workflows and better processes. Payment processing providers are at the forefront of digital innovation, using integrated, cloud-based solutions that can easily translate to other platforms and support collaboration between departments.
Working with a third-party financial partner can help you simplify payment processing for your business and thus standardize your workflows. These improved processes allow you to build operational resilience for your utility company. By working with a quality utility payment processing partner, you can reduce days sales outstanding (DSO) and lower payment processing costs.
Customers want simple, convenient payment options that utilize their preferred payment methods. It’s overwhelming and seemingly impossible to maintain all of these different payment methods if you are processing payments in-house, but a qualified payment processing partner allows you to do so easily and securely.
By improving your customer payment experience, you can grow your bottom line and increase profits. Easily offer all of the payment channels your customers are looking for, such as electronic payments and pay by text.
Sometimes businesses find themselves cobbling together different platforms for their utility bill management, accounts receivable, and billing process. A strong utility payment processor will offer payment methods across all the popular payment channels, making for a streamlined omnichannel customer journey and for a centralized payment processing workflow.
These increased efficiencies benefit not only the customer experience side of business but also the employee side of the operation. High-quality payment processing partners like FirsTech offer a comprehensive suite of tools that are made for effective workflows, backed by strong customer service for your finance and accounting teams.
The growing number of payment channels requires a more comprehensive security system to manage payments and ensure safe operations. Utility companies have been the target of cyberattacks in the past, so there is no room for uncertainty when it comes to the safety of your utility billing management.
Third-party payment processing companies can be subject to much more rigorous compliance practices and regulations than utility companies. FirsTech not only embraces those regulations but goes beyond them, staying at the forefront of cybersecurity in banking.
In addition to being PCI compliant and SSAE 18 certified, FirsTech is backed by Busey Bank, which means our operations regularly undergo regulated compliance examinations far more than other payment providers who are not bank-owned.
When choosing a payment processing provider, utility companies should consider what other financial services they use and could benefit from outsourcing. At FirsTech, we are proud to offer a complete suite of financial solutions which allows us to be a single, committed financial partner to our clients.
In addition to payment processing across payment channels, we offer merchant services and other financial solutions. Our services are backed by unmatched customer support, ensuring you can be confident in your choice of partner.
In the past, utility providers relied on mailing utility bills to customers and receiving payments in return. Today, your customers pay through bills through an ever-evolving landscape of payment processing channels, and they want to be able to use their preferred channels when it comes to your bills.
Popular channels for utility payment processing include:
At FirsTech, we can provide your customers with a wide breadth of payment channel options to make their utility bill management as easy as possible. We’ve built a comprehensive payment solution suite that ensures secure, efficient processes that ultimately save you money while improving customer satisfaction.
For example, our in-person payments are provided through over 6,000 in-person payment locations across the country, including participating Kroger and Schnucks stores. Our pay by text feature can automate payment reminders, increasing your customers’ on-time payments. In 2023 alone, we processed $12 billion in payments.
As a business in the bustling utility industry, you power the processes that keep businesses, homes, and communities running smoothly. To keep your business doing the same, you can benefit from a third-party payment processor like FirsTech.
At FirsTech, we were founded with the goal of collecting efficient, accurate payments on behalf of our clients and grew from there. Today, we are proud to be at the forefront of payment processing innovation, including when it comes to the unique requirements of utility bill management and related processes. We have customized our services to the needs of individual industries like utility providers.
To see FirsTech solutions in action, request a demo or contact our team today.