By Nicole Haskins, VP, Paymentus
Did you know that according to the USCG Navigation Center, approximately 90% of an iceberg’s total mass is submerged underwater? It’s incredible to think that what’s visible above the surface accounts for only 10% of the total picture.
Unfortunately, the iceberg is a perfect metaphor of the fee structures implemented by many billing and payment platform providers. And as everyone knows, running into a single iceberg can have catastrophic consequences, which is why Paymentus is purpose-built to help organizations deliver a superior customer experience without the hidden fees.
The Billing & Payment Fees Sitting Below the Surface
Ironically, hidden costs are everywhere you look. From buying a car to purchasing tickets online, there always seems to be a fee that you only notice once you’re asked to pay. Submerged underneath the deal you thought you had is the deal you actually made.
This is no different in the world of billing and payments, where your platform provider may keep low transaction fees highly visible and above the water, while keeping their more profitable fees under the water.
The following graphic represents a typical iceberg for many billing and payment platform providers:
Common Billing & Payment Fees
Why Reducing Costs to Serve Is a Linchpin of Service Commerce
For all of the complexities offered within the billing and payments landscape, fees should be the most straightforward element within any relationship between service provider and billing and payments partner. Not simply because it’s the right thing to do, but for the outsized impacts that hidden fees can have on your ability to serve your customers.
You’re a service organization. A hidden fee is less money you can spend on research and development, necessary projects, and critical staff. It may also necessitate raising rates, something we have shown to be detrimental to all bill payers. Each fee isn’t just a debit against your bottom line, it’s a debit against your customer service capabilities.
Full fee transparency from your vendor is your greatest ally in serving customers to your full potential. Surprises invite risk (and worse), and risk runs counter to great customer service.
The True Costs of “Savings”
Paper bill costs can be one of the largest drags on an organization’s bottom line. Printing and mailing costs continue to rise, making paper suppression and paperless eBilling an essential savings driver for organizations.
However, paper suppressing capabilities can end up adding costs to your bottom line if accompanied by hidden fees. Vendors may opt to charge fees for digital notifications such as payment due and payment received. These are fees that are charged per notification each month.
If a customer chooses to receive a paper bill and an eBill, these charges get added together. This will likely force your organization into a scenario where either you remove one of these options or pass the costs onto customers. Neither are ideal and can risk disrupting the relationship you are attempting to build with your customers.
Chart Your Path Around Fee Icebergs
As you consider your role as a service organization, it’s also important to consider that there are many paths to success, and you don’t have to settle for legacy limitations or hidden fees. Backed by more than two decades of experience and countless migrations, we help your organization achieve Dynamic Simplicity by shouldering the heavy lifting of complex migrations and orchestrations.
We never want any organization to feel stuck. It’s not fair to you or your customers. That’s why we have created a time-tested process that is proven to streamline implementations. And we back your solution with complimentary marketing support, ensuring your goals are met from day one.
If you’re tired of hidden fees impacting your ability to serve, we’d love to show you a better path forward.
You can read our three-part affordability series here: New Data Spells Out the Challenge of Affordability, Affordability Impacts All Bill Payers, Change Management Supports Bill Pay Affordability. For more information on how Paymentus has helped our clients save more than $1 billion (and counting), visit Paymentus.com/reduced-cost-to-serve/ or contact a Paymentus expert today!
