Does your business want to save money and headaches when it comes to billing practices? Traditional payment methods are slowing down many businesses and costing them money. For example, “In 2025, taking staff salaries, benefits, technology, overhead and other operating expenses into account, processing a single paper-based bill costs organizations an average of $9.40.” However, organizations that use “digital or automatic billing” may reduce costs to just $2.78 a bill!
Digital payments and automatic billing offer businesses many perks. There’s less manual labor involved since staff members don’t need to create a physical bill. The bill can be automatically created and presented digitally, saving time and money. Handling payments this way also lowers the chance of human error.
In addition, these modern methods help speed things up. The billing cycle is essentially expedited. This helps increase the businesses’ cash flow and improves the customer experience. “70% of customers expect their bill payments to be processed the same day or instantly.” However, “9.2 days [is] the average time it takes to process a single paper bill.” So, by offering digital payments and automatic billing, you can meet customer demand and keep them satisfied. Customer satisfaction can then equate to higher profitability since it can improve customer loyalty.
Digital payments and automatic billing also offer a major convenience factor for customers and businesses. Customers have more flexibility in how they’ll pay their bills and have less chance of forgetting to make payments. Plus, automatic invoices make billing more predictable for the customer. These methods are also easier to track, offering precise record-keeping.
As we mentioned earlier, it can cost more for businesses to process payments the traditional way while digital payments and automatic billing methods can reduce costs. Consider the money you’d save not having to print invoices, buy stamps, and pay for the human labor of processing the invoices manually.
The traditional way of handling invoices and payments is fraught with potential issues. Not only can it cost a business more money and reduce customer satisfaction, but it also opens businesses up to a greater occurrence of fraud since checks are easier to commandeer and alter. “More than 20% of organizations reported fraud due to interference with the United States Postal Service, up 10 percentage points from 2022.”
As you can see, switching to digital payments and using automatic billing can offer both the business and the customer a number of benefits. Businesses can increase their cash flow while making the invoicing process a breeze. Plus, customers can quickly make payments with ease. Overall, it’s a win-win for both parties. If you’d like to talk more about this, please reach out to Richmond Financial Services. The payment processing universe has shifted dramatically and continues to evolve. Evolve with it.
