Auto Insurance Electronic Payment Policy Retention

Many auto insurance companies have seen the benefits of having their clients on automatic payments that are taking electronically from the insured bank account monthly. The policy retention of the clients that have electronic funds transfer for installments is more than double that of the direct bill clients.

Having significantly higher policy retention benefits the insurance company in many ways. There is less paperwork that needs to be done for clients that are cancelled for non-payment, there are less midterm cancellations, and more of the client’s policies mature to receive the loyalty discounts that are offered.

When an insurance company offers a loyalty discount it is less likely that the insured will be able to find a more competitive rate with another carrier. In California, if the insured were to get quoted from new insurance companies the new companies will not be able to offer a discounted rate because the client has had continuous coverage.

In return the insurance companies offer these electronic payments to client multiple times. Some insurance carriers offer this to the client on almost every communication. The companies will also offer lower billing fees to these clients that elect to have their monthly payment taken from their checking account.

There has been some debate in the industry about the level of responsibility of the clients that choose EFT monthly installments. Some say that these clients are more financially responsible and would have the higher retention regardless of the policy billing. Either way, the insured will be able to save each month on the billing fees associated with the policies. In some cases the saving could be as high as $10 per month.

Should We Be Concerned When Using Electronic Payment Systems?

The world now operates largely through the World Wide Web. New internet based companies are springing up all the time to offer consumers products for less and without the hassle of having to pop down to the shops to pick the item up.

All of these websites need to have some form of electronic payment system to allow the customers to securely pay their money to the company in question and possibly the biggest single issue with shopping on the internet is the threat of your bank details being hacked by some online virus or tracker.

Obviously there will always be people that will attempt to hack peoples bank details, just like there will always be people who attempt to rob banks or perform muggings. But thankfully there are a number of individuals that have the task of constantly coming up with new ways to make the electronic payment systems more secure.

There have been several variations of the online electronic payment system, but the standard version that most people use today is PayPal. This service works as a go between for the client and the company selling products. The money is transferred securely to PayPal who then hold the money before passing it on to the company. Because of this there is no exchanging of bank details between the two individuals. All the bank details are stored on PayPal’s secure servers.

Other variations of the electronic payment system involve using a series of security number and passwords. For instance VISA’s latest version of their online electronic payment system includes using the three digit security code from the back of the card and also uses a specified password that the owner sets to verify that the card hasn’t been stolen.

Obviously you will never really eliminate all card crime, because as quickly as these companies can manufacturer new methods of keeping us all safe, someone is coming up with a way to crack the code and give the advantage back to the thieves.

If you really want to make sure that you stay safe when ordering your products online, then there are a number of rules that you should follow. Firstly, online shop on sites that you know are genuine and you trust, secondly ensure that you machine is updated with the latest security patches from your software manufacturer, and thirdly ensure when purchasing that the web address starts with https. As long as you follow these steps you should have a happy and safe online purchasing experience.

International Payment Processing: The Rise of Local Electronic Payments

There is no point in denying it. Technology is changing more rapidly than we might ever have imagined two decades ago, and electronic systems have now forever changed the way we work, communicate, and even the way that we purchase and enjoy books. Predictably, this trend has also affected the way we pay. Traditional payment avenues, such as cash and cheques, are being systematically replaced by innovative electronic forms of payment as markets respond to growing demand. In some European areas, like Scandinavia and the Netherlands, the use of cheques is virtually nonexistent. In 2009 the UK Payments Council reacted to declining cheque use by proposing they be phased out completely! (This has since been rescinded.) Rapid consumer uptake of electronic payment systems has meant that some countries’ banking systems are rushing to catch up and are currently very busy perfecting local electronic payment systems that can cope with an extraordinarily high volume of paperless transactions.

Popular forms of electronic payment processing are:

Direct Debit – a mechanism where your customer gives you authorization to debit funds directly from their bank account.

EFT – a blanket term used to describe the electronic transfer of money.

ACH – Automated Clearing House – the US specific system for processing electronic payments.

SEPA – Single Euro Payments Area – This is a standardized form of electronic payment used throughout the Eurozone. Using SEPA payments, funds can be transmitted across borders with the speed, simplicity and cost-effectiveness of a local domestic payment.

The electronic trend is heavily promoted by banks, as electronic payments mean less overhead and expense than those systems that require manual processing, such as cheques. They are more than willing to invest in systems that will deal with epayments effectively, ensuring that people can send and receive funds quickly and securely, moving as fast as their computers will allow.

In the US, bank-to-bank transfer payments are cleared through the Automated Clearing House, or ACH, system, which processes huge volumes of debits and credits electronically. Across the pond, the UK has developed FasterPayments, which offers the speed of a wire transfer with the administrative simplicity of an eft. Throughout the Eurozone, payments are streamlined by the existence of the Single Euro Payments Area, a group of countries within which a payment can cross borders and time zones with the same ease and efficiency as if both parties were in the same country.

You can be sure that as the demand for electronic payments grows, more countries will work to create and streamline their own specific electronic payment services to deal with the need. Payment processing companies also respond to the growing demand for electronic payment processing by offering a full suite of local electronic payments.