For years utility companies did not accept credit cards for payments of bills. The biggest issue was that it was too expensive for them to accept cards as payments. That’s changing as card associations, hungry for new business, are marketing to the utiltiy market with aggressive interchange rates
Electronic bill presentment and payment (EBPP) is expanding rapidly as more utility companies have started taking advantage of special low discount rates. Consumers and utility companies can both benefit.
Consumers want to pay by credit cards for many reasons. Some simply do not have money to pay the bills at the end of the month. Paying by credit card gives them a way to literally keep the lights on. Of course, it’s an expensive way to pay the bills, considering the exorbitant rates some issuing banks charge as interest.
Consumers are used to using debit cards for all purchases. Customers with and without bank accounts can use the cards to conveniently pay utility bills without the need to write a check or get a money order.
For utility companies, EBPP provides significant savings on traditional printing, mailing, and remittance processing. Business processes are streamlined and productivity increases.
How is your utility company accepting card payments?