How to Add an IVR Payment Option and Automate Collections

Interactive voice response payment technology enables customers to make payments securely and efficiently over the phone. It benefits call centers and collections agencies by freeing up agents to handle more complicated issues.

In turn, this reduces labor costs and time spent handling manual payment collection.

When properly implemented, an IVR system can give callers the quick and easy payment option they want while also saving time and money for your business, making it a win-win for everyone involved.

How to add secure IVR payment options

Your business will need three types of software in order to implement a secure IVR payment system:

• IVR software: This is the core of the system, providing everything you need to create and manage call flows, voice prompts, and interactions with callers. At a minimum, it should support integration with external APIs for customer relationship management and payment processing.
• CRM software: To personalize the IVR experience and pull relevant customer data, your IVR system needs to integrate with your CRM software. This ensures the IVR system can access purchase history, account preferences, and other key data points.
• Payment processor: You’ll also need secure software to manage and process payments. It must be capable of encrypting transaction data and interfacing with banking systems or payment gateways while ensuring compliance.

While the actual process of setting up IVR payments varies depending on the provider, these three tools will give you everything you need. Each software provider should give you detailed instructions on how to do this, either through online guides or by connecting you with their support team.

Once these pieces are in place, the next step is to make sure your setup complies with PCI DSS standards to protect sensitive data. This involves several important steps:

• Data encryption: Encrypt all transmitted data so hackers can’t read it.
• Access control: Restrict data access to essential personnel only.
• Regular testing: Perform routine security tests to identify vulnerabilities.
• Secure storage: Securely encrypt and store any payment card data.
• System and application security: Update systems and software with security patches.
• Information security policy: Implement a policy on information security for all employees. Make sure they’ve not only read but signed off on it.

Some payment service providers simplify compliance by storing credit card data on their secure servers rather than the business’s system. This process, known as outsourcing payment processing, shifts the responsibility for protecting cardholder data to the provider and makes it easier for businesses to meet PCI standards and focus on core operations.

How to avoid common issues with IVR payments

There are plenty of benefits to using IVR systems for collecting payments, but the implementation process can get complicated. Here are some tips to get the most out of your system and avoid common pitfalls.

Simplify the customer experience

• Streamline call flows: Design your IVR menus to be as intuitive and concise as possible. Avoid overloading customers with too many options or complex navigation paths, which can be frustrating and cause the caller to abandon the call altogether.
• Use clear and concise language: Make sure voice prompts are straightforward and use plain, everyday language.
• Offer a quick exit or transfer option: Always provide customers with the option to speak with a live agent, and don’t bury that option deep within the menu so it’s impossible to find. Your goal is to make this process as easy for the customer as possible.

Ensure compatibility with CRM and payment processors

• Comprehensive integration capability: Choose IVR software that offers solid integration features with a wide range of CRMs and payment processors. This will be especially helpful if you decide to switch or upgrade your other systems in the future.
• Vendor support and documentation: Shop around and make sure you choose a vendor that provides detailed documentation and support for integrating their system with your CRM and payment processing software. The more help they can give you, the better.
• Test integration thoroughly: Before going live, conduct extensive testing on the integration points between your IVR system, CRM, and payment processors. You’ll want to identify and resolve any issues that could cause them any frustration.

Monitor and optimize performance

• Track customer interactions: Use analytics to monitor how customers interact with your IVR system. Look for patterns that indicate common drop-off points or areas of confusion.
• Solicit customer feedback: Collect feedback from customers about their IVR payment experience so you can continue to make improvements to your system.

Automating collections with IVR payment processing

You don’t have to wait for customers to call in to get the benefits of an IVR system — you can also use it to make outbound calls.

An outbound IVR system enables automated customer calls for things like appointment reminders, payment reminders, and collecting customer feedback. It works by dialing numbers from a predetermined list and delivering messages or collecting information from the recipient through keypad inputs or voice responses.

Your company can harness the power of an outbound dialer in conjunction with CRM software to fully automate the IVR payment process. To do this, create customer segments in your CRM, identifying those with outstanding payments or who might benefit from reminders or payment opportunities.

This data can include payment history, purchase behavior, and personal preferences.

Here’s what the outbound IVR payment process looks like in action:

1. The CRM spots a customer who hasn’t paid an invoice.
2. The integrated outbound dialer automatically calls or texts the customer about the unpaid invoice.
3. When the customer answers, the IVR explains the bill and offers payment options, either over the phone or via a text link to pay online.
4. The customer follows the IVR instructions to pay over the phone or clicks the text link to pay online.
5. They provide their payment information, and a secure payment processor completes the transaction.
6. Right after the payment, the customer gets a confirmation that the payment is complete, and the CRM updates the invoice as paid.

Most people aren’t super excited about making payments, so you’ll want to make the process as easy as possible for them.

The nice thing about this automated system is that it’s efficient and convenient for the customer, which goes a long way toward creating a positive user experience.

In addition to satisfying customers, the efficiency of automated, outbound IVR payments also benefits companies by saving money on labor and freeing up agents to tackle high-value tasks that require a human touch, such as contacting new leads or closing deals.

More great uses for IVR payment

Implementing a secure IVR payment system opens opportunities beyond just automating collections. Here are five examples that showcase the versatility of IVR payment solutions.

24/7 payment option for utilities and services

A secure IVR payment system enables utility companies like electricity, water, and internet providers to offer a round-the-clock payment service. Customers can call at their convenience to pay bills without waiting for business hours.

This system can guide customers through a simple process to check their balance, hear recent charges, and make payments directly from their bank account or credit card.

Nonprofit donations

Nonprofits can leverage IVR systems to make accepting donations quick and easy. By setting up an IVR system, they can offer supporters a straightforward way to make contributions over the phone.

The system can provide information about ongoing projects or campaigns and allow donors to select where they want their funds to go. This method makes donating simple and allows nonprofits to reach a wider audience than they could with a manual process, meaning they have more opportunities for collecting donations.

Subscription renewals

Businesses with subscription-based models, such as magazines, streaming services, and membership clubs, can use IVR payment systems to simplify the renewal process.

Subscribers can receive automated calls reminding them of their subscription expiration date and guiding them through the renewal process. This ensures continuous service for the customer and helps businesses maintain steady revenue streams with no manual intervention.

Appointment check-ins and co-payments

Healthcare providers can utilize IVR systems to check in patients before their appointments and collect any required co-payments. Patients can receive calls to confirm upcoming appointments and have the option to pay their co-payments over the phone. This streamlines the check-in process on the day of the appointment, reduces no-shows, and ensures that payments are collected efficiently.

Traffic fines and public fees

Local governments can implement IVR systems to collect payments for traffic fines, property taxes, and other public fees. Outbound IVR can notify citizens of any outstanding amounts and use the automated system to clear their dues. This offers a convenient payment solution for the public while reducing the need for in-person visits and decreasing administrative workload.