More and more insurance companies offer the option to make premium payments online. There are many benefits to taking advantage of this.
It’s convenient. You can make payments from anywhere that you have internet access. If you’re often traveling or work remotely, you do not need to worry about being in the office to write out checks and get them in the mail. Online payments only take a few clicks.
This saves time. You save your own time by skipping the hassle and expense of checks and postage, but you also expedite payment processing. Mail delivery can take days, let alone waiting for the physical check to be sorted, deposited, and properly applied. When you pay online, the funds are withdrawn directly from the bank by ACH or EFT, usually within 24-48 hours. This ensures that you’re meeting your deadlines and reduces the risk of late payment or cancellation notices.
It’s also secure. Mail can get lost or intercepted. Checks can be sent to the wrong address or payee. When you make an online payment, you know you’re sending payment directly to the carrier securely.
Online payments also increase accuracy. When you pay online, you know the transaction should clear within a day or two. Not only does this keep your accounting clean and up-to-date, but it also makes it easier to spot errors faster. If payment doesn’t clear when expected, you can immediately begin researching the issue. With the time delay of check payments, it may be a week or longer before you realize something’s amiss.
Online payments help prevent other errors too, such as misapplied payments. Since they usually require basic remittance information to be provided with the online transaction, such as a client name, policy number, or invoice number, this helps guarantee that payment will be applied to the correct account.
Electronic payments offer accuracy, security, and convenience. But there’s one more consideration: isn’t most of your business already paperless? You’re already online; why not consider using online payments as one more tool in your business model?