If you have never heard of smart Billing, you’re not alone. A lot of people haven’t either. This functionality has emerged only recently but has already become one of the most sought-after features in payment platforms.
It offers the simplicity every payment service provider (PSP) longs for, as well as the flexibility no other feature in the toolkit of a payment system can offer.
While smart Billing is highly beneficial and can potentially increase the revenue of a PSP, only a dozen payment service providers offer it today. Fortunately, Akurateco is one of those few. And in this article, we will explain what this functionality can provide to your business and how it can meet the specific needs of your PSP.
But before we dive in, let’s go over the vocabulary.
What’s Smart Billing?
Smart Billing is a technology that allows payment service providers to fully automate the fee structure for every customer. It’s also known as an automated fee structure, and this term perfectly depicts what the feature is all about. The software behind the technology allows for the complete customization of payment actions and predefined rules. All in order to help PSPs seamlessly charge clients more without any friction.
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How it works
To set up smart Billing, you need to predefine what payment actions you want to charge your customers for. For instance, if you work with both high-risk and low-risk businesses, you can set a higher chargeback fee from the high-risk customers while keeping that same fee at a lower end for clients whose business is not associated with fraud and chargebacks.
Once you understand the nature of your client’s businesses and know what actions you should charge for, simply set it up in the Admin Panel. It should not be a problem if you work with a white-label payment service provider like Akurateco, who acts as a technical department of your company, helping you out every step of the way.
As soon as you set it up, the system will automatically do calculations for you and draft the invoices for you to check and send out to your customers. Simple as that, this feature has the potential to grow your revenue and drive growth to your payment processing business.
How it started…
What is now known as “Smart billing” originated from conventional invoicing technology. It allows a PSP to charge every customer either per transaction or based on the merchant’s sales volume. While it met the basic needs of its customers, it didn’t offer them enough flexibility. So, innovative payment providers introduced smart Billing.
…how it’s going
Smart Billing, unlike the technology used before it, offers diversity. With it, individuals can be very specific in what they find fit to charge each customer for. Besides, it provides flexibility where it is so needed, helps its clients increase the revenue, and saves a ridiculous amount of time by automating the process altogether.
Now, let’s look at all these benefits closer.
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Benefits of Smart Billing, or why it’d be a good idea for you to have it
Smart Billing allows you to apply a wide range of predefined rules. Yet, the system is still quite simple.
Not only will the payment platform with built-in Smart Billing collect all the hard data for you to analyze, but it will also do the calculations and draft invoices for every single customer. It’s like a dream come true for any payment specialist.
With the seamless introduction of the flexible fee structure, this feature allows you to charge your customers for more actions. You introduce more industry-specific fees – and, as a result, increase your revenue.
Lower processing costs.
A PSP using a payment gateway with smart Billing can easily customize fees based on factors like sales volumes, geo, etc. When customized correctly, such fees can be significantly lower on the end customer’s end. And as we all know, the lower the costs, the happier and more loyal the customer is.
Once the word gets out there that you offer lower processing fees (read a section above), you’ll see new customers. The word spreads fast. Especially the one about reduced processing costs which can be through-the-roof in some industries.
As long as you have built-in Smart Billing on your features list, you can rest assured: the system will do wonders for your business. Instead of manually calculating and sending out invoices to your customers, you can now entirely rely on technology. With it, you can save hours of work and free up the schedule of your key team players to focus on their actual responsibilities.
Smart Billing, though not very popular among white-label payment providers, is no longer a luxury but rather a necessity for any successful PSP. If you are looking for a provider of this feature, Akurateco is here to answer your questions as a pioneer in delivering this technology to the white-label financial sector. Feel free to fill out this form and book a free Demo of the system!