How to Add IVR Payment Option and Automate Collections

Interactive voice response payment technology allows customers to make payments securely and efficiently over the phone. This is beneficial for call centers and collection agencies because it frees up agents to handle more complex issues.

As a result, labor costs and time spent on manual payment collection are reduced.

If an IVR system is implemented correctly, callers will be able to use a quick and easy payment option, saving your company time and money. This is a win-win for all parties involved.

How to Add Secure IVR Payment Options

To implement a secure IVR payment system, your company will need three types of software:

IVR software: This is the core of the system, providing everything you need to create and manage call flows, voice messages, and caller interactions. 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, the IVR system must integrate with the CRM software. This will allow the IVR system to access purchase history, account preferences, and other key data points.
Payment Processor: You’ll also need secure payment management and processing software. It needs to be able to encrypt transaction data and connect to banking systems or payment gateways while ensuring compliance.

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

Once these elements are in place, the next step is to ensure that the setup is PCI DSS compliant to protect sensitive data. This includes several important steps:

Data encryption: Encrypt all transmitted data so hackers can’t read it.
Access control: Limit access to data to only necessary personnel.
Regular testing: Conduct routine security testing to identify vulnerabilities.
Safe storage: Securely encrypt and store your payment card information.
System and application security: Keep systems and software updated with security patches.
Information security policy: Implement an information security policy for all employees. Make sure they not only read it, but also sign it.

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

How to Avoid Common IVR Payment Issues

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

Simplify your customer experience

Streamline your call flows: Design your IVR menus to be as intuitive and concise as possible. Avoid overloading customers with too many options or complicated navigation paths, which can be frustrating and cause callers to abandon the call altogether.
Use clear and concise language: Make sure voice messages are clear and understandable on a daily basis.
Offer a quick exit or transfer option: Always give customers the option to talk to a live agent, and don’t hide that option deep in the menu where it can’t be found. Your goal is to make the process as easy as possible for the customer.

Ensure compatibility with CRM systems and payment processors

Comprehensive integration capabilities: Choose IVR software that offers solid integration features with a wide range of CRM systems and payment processors. This will be especially helpful if you decide to change or upgrade 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 CRM and payment processing software. The more help they can provide, the better.
Test the integration thoroughly: Before going live, conduct extensive testing of the integration points between your IVR, CRM, and payment processors. You’ll want to identify and resolve any issues that could be causing frustration for them.

Monitor and optimize performance

Track customer interactions: Use analytics to monitor customer interactions with your IVR system. Look for patterns that indicate common drop-off points or areas of confusion.
Ask customers for feedback: Collect customer feedback on their IVR payment experiences so you can continue to improve your system.

Collection Automation with IVR Payment Processing

You don’t have to wait for customers to call to take advantage of an IVR system – you can use it to make outbound calls, too.

An outbound IVR system enables automated customer calls, such as appointment reminders, payment reminders, and customer feedback. It works by dialing numbers from a pre-defined list and delivering a message or collecting information from the recipient via a keypad or voice response.

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

This data may include payment history, purchasing behavior and personal preferences.

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

The CRM system detects a customer who has not paid an invoice.
The integrated outbound dialer automatically places a call or sends an SMS message to the customer about an unpaid invoice.
Once the customer answers the call, the IVR system explains the bill and offers payment options: over the phone or via a text link to pay online.
The customer follows the IVR instructions to pay over the phone or clicks a text link to pay online.
Users provide their payment details and a secure payment processor handles the transaction.
Immediately after making a payment, the customer receives confirmation that the payment has been made and CRM updates the invoice as paid.

Most people don’t like making payments, so you need to make the process easier for them.

The biggest advantage of this automated system is its efficiency and convenience for the customer, which greatly contributes to creating a positive user experience.

In addition to customer satisfaction, automated outbound IVR payments also benefit businesses by saving money on labor and freeing up agents to focus on high-value, human-touch tasks like contacting new leads or closing deals.

More great uses for IVR payments

Implementing a secure IVR payment system opens up possibilities that go beyond debt collection automation. Here are five examples that demonstrate the versatility of IVR payment solutions.

24/7 payment option for utilities and services

Secure IVR payment system enables utility companies such as electricity, water and internet providers to offer 24/7 payment service. Customers can call whenever they want to pay their bills without having to wait for business hours.

The system can guide customers through a simple process of checking their balance, viewing recent charges and making payments directly from their bank account or credit card.

Donations for non-profit purposes

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

The system can provide information about ongoing projects or campaigns and let donors choose where they want to allocate their funds. This method makes donating easy and allows nonprofits to reach a wider audience than they would with a manual process, meaning they have more opportunities to collect donations.

Renewing your subscription

Businesses that use subscription models, such as magazine publishers, streaming providers, and membership clubs, can use IVR payment systems to simplify the subscription renewal process.

Subscribers can receive automated calls reminding them of their subscription expiration date and guiding them through the renewal process. This ensures customer service continuity and helps businesses maintain steady revenue streams without manual intervention.

Registration of visits and additional payments

Healthcare providers can use IVR systems to register patients prior to visits and collect any required co-payments. Patients can receive calls to confirm upcoming visits and have the option to pay co-payments over the phone. This streamlines the day-of-appointment registration process, reduces no-shows, and ensures smooth payment collection.

Traffic fines and public fees

Local authorities can implement IVR systems to collect payments for traffic tickets, property taxes and other public fees. Outbound IVR can notify citizens of any outstanding amounts and use an automated system to pay the debt. This offers a convenient payment solution for the public while reducing the need for in-person visits and reducing the administrative burden.