Merchants can now set up payment solutions that allow them to send invoices via email. With the correct email invoicing contactless payment technology, they can automate payment collection. Payment processors like iCG Pay, formerly known as iCheckGateway.com, can help merchants incorporate multiple payment solutions like email invoicing, SMS payments, virtual terminals, etc., in their sales processes.
This blog talks about the top benefits of using email invoicing to manage and collect payments.
How Email Invoicing Works
Let’s say you are a merchant who provides services/products to various audiences. You can collect payments via a POS terminal or cash if you have a brick-and-mortar store. However, if you have an online business, you need to offer a hosted payment portal where your customers can log in and pay via credit card or ACH.
Not all customers are comfortable logging into a payment portal to complete the transaction. In some cases, your customers may also want an option to defer the payment until they receive the product/service. You can send the invoice via email to collect payment in such situations. Essentially, write an email based on the standard invoice email templates, and include the invoice as an attachment. Sending an invoice as an attachment to an email is basically known as email invoicing.
The Modern Email Invoicing Method
Conventionally, merchants had to write an invoice email manually each time they wanted to send a new invoice. The essential components of such an email include:
- PDF file for the invoice as an attachment
- Invoice number for the product
- The number for product/service
- Invoice due date
- Details of the product/service
- Product service due details
However, with modern-day developments, merchants automatically generate and send invoices to various customers with invoicing software. These powerful invoicing software automatically populate important customer and product/service-related data from a repository.
Using such software can help merchants generate hundreds of invoices with a single click.
However, that is not all. Tech-savvy payment processors easily integrate with the merchant’s invoicing software to include a payment link on the email. The end customer will easily use this link to log in to a hosted payment portal to complete the payment.
Benefits of Sending Invoices Via Email
Benefit #1: Send a Payment Link
With advanced technology, merchants automatically generate a payment link for their customers for the exact invoice amount. The customers select their preferred payment method, enter details, and click pay to complete the transaction. If done correctly, the entire payment process does not take more than a few seconds.
Benefit #2: Save Postage Fees and Time
Instead of mailing the invoice and waiting for the customer to receive it and send a check back, merchants can now send invoices over email. For merchants that deal with high transaction volumes, this translates to a considerable amount of savings on postage fees and time. Merchants can also automatically highlight late payment cases with this technology and send them to the collections team for a follow-up. Such efficient automation can help them save a lot of energy.
Benefit #3: Adopt Multiple Payment Technologies
The top payment processors increase the scope of business by helping merchants adopt multiple payment technologies. Advanced payment processors offer a single point of contact for both ACH and credit card processing needs. Merchants that adopt multiple payment technologies easily attract a more extensive customer base and offer them the benefits of a Cash Discount Program.
Benefit #4: Leverage Seamless Integrations
A solid technical background in payments processing can bring multiple technologies together. Merchants essentially deal with a single user-friendly interface to manage and access all their payment data with a suitable payment processor. Moreover, the best technology decreases friction by integrating multiple applications using back-end developer plugins.
Benefit #5: Generate Important Reports
Creating digital invoices can help merchants save copies of the invoice on their systems in a repository. They can then use the data from these repositories to create custom dashboards and reports for trend analysis.
Benefit #6: Formalize the Invoicing Process
White-labeling can help merchants generate formal invoices for their customers. With specialized customization, these invoices contain the merchant’s brand logo and business details. These branding details help the customers easily distinguish these email invoices with customized branding.
Benefit #7: Reduce PCI Scope and Increase Customer Convenience
Some customers are uncomfortable logging on to third-party payment portals that do not look like the merchant’s website. The merchant can customize the payment portal and link to replicate their home website seamlessly with hosted payment portal solutions. Customers can then feel safer logging into a payment application that looks exactly like their shopping experience.
It is a good idea for merchants to adopt technologies that help them get paid on time. We can help small businesses adopt payment technologies that improve customer experience. You can speak to our relationship managers if you have a pool of merchants who wish to receive payments using safe and seamless payment technologies.
Date originally published: March 14, 2022
Date updated: March 7, 2024
