If you’ve ever had to pay an invoice, then you’ve likely experienced using BPAY or seen it offered as a payment option on a company’s website.
You may have considered it as a payment option for your business. If you haven’t, maybe you should?
What is BPAY?
Bill Payments (known officially as BPAY) is an online solution that allows businesses to coordinate payments in a seemingly effortless manner. It is the most prominent payment facilitation service in Australia because it is exceptionally efficient. It allows a customer to transfer funds from their bank account directly into the pre-identified bank account of another business.
BPAY has had more than two decades of operation within the Australian market and has partnered with over 45,000 Australian businesses.
They have a pretty solid idea of how Australian consumers want to pay. BPAY is made with the customer experience in mind. Customers can choose to settle their invoice by either paying through their savings account, their cheque account, or with their credit card.
However, due to the fact that some companies do not accept credit payments, and there are additional fees around the use of a credit card, the majority of consumers choose to make use of their day-to-day savings account for payment.
How BPAY works?
If you are considering using BPAY as a payment option for your business you’ll want to make sure you’re across the customer experience it provides.
For a customer to pay an invoice using BPAY:
They sign into their online banking platform and follow the prompts to make a BPAY payment.
They enter the biller code and reference number from their invoice, along with the amount they want to pay.
The customers financial institution will validate the payment and give the customer a receipt.
Funds are deposited into your business banking account the next day.
The advantages of using BPAY
BPAY offers a number of benefits that make it very popular in today’s business environment. Firstly, it allows your business to have better cash flow as money is cleared within one business day.
Reconciliation is also made efficient thanks to the BPAY customer reference number (CRN) which is unique to each customer. Using the CRN you can easily identify which customers have paid their invoices.
BPAY have also partnered with most banks and credit unions in Australia. They now offer smarter billing via the introduction of BPAY view. This means invoices are delivered directly into your customers online banking platforms.
Things to keep in mind
To use BPAY effectively it’s important to keep a couple of things in mind. Always double-check invoices before you send them. Human errors can impact payments, namely inaccurate entering of details such as the Biller Code or the CRN. This can lead a consumer to misallocate their payment. Ultimately, the funds may have to be redirected back to their account before they can settle the account with the correct business.
In addition, in certain environments, corporations do not recognise BPAY customers who attempt to settle their accounts with their credit card. If they do, large fees will often be charged. BPAY is an incredible online tool that has helped to elevate the way ordinary transactions take place around the world by streamlining the invoicing process and making payments not only more effective but also safe due to their multi-step verification system.