Digital billing also is known as electronic billing or e-billing is a technology, used by the businesses to get quick and secure payments, without having to deal with the nuances of handling paper bills and cheque payments.
This kind of billing system facilitates both the delivery and the payment of bills to take place absolutely online which not only improves efficiency but also reduces costs. This sounds quite beneficial for business owners. It is always good to know some important facts about digital billing, so that the owners, with recurring bills to pay, can switch over to it.
What is digital billing? Things to know
Digital or e-billing is a process of sending bills as well as collecting payments for the bills sent over. The options to pay electronically is generally provided with this.
This method of billing integrates multiple systems, like a banking system, a billing system, a customer’s bank bill pay system as well as an online interface for helping the e-billing system to work. This method is absolutely necessary and beneficial for the businesses which have recurring bills to pay every month. The best example of this would be an electricity company, which charges power bills every month or at a fixed interval of time. The customers can be sent e-bills every month and they can be paid online, must to the ease and comfort of both the service provider and the customer.
Electronic or digital bills are paperless options for delivering the bills. Generally shared as PDF Files, these can now be shared through various online mediums. This allows the customers to know more about their bills before they pay for it. Also, automated payments can also be set up so that on a certain day of every month, the bills get paid, without the customers having to remember it or even touching a button.
Some benefits of this, newly introduced format of billing are:
- Electronic or digital bills are low-cost alternatives to send bills to customers.
- Secure and legit just as paper bills.
- There is a provision for automatic payments.
- The payments can be made really fast.
Both the customers and the businesses benefit immensely from e-bills as they are less expensive, faster and more secure.
How does an electronic billing system work?
The electronic or digital billing systems help with generating and delivering invoices and accepting the payments made by the customers. The flow of an invoice through this kind of billing is through the following path:
- Customer billing data is aggregated in the billing system.
- The bill is generated by the billing system.
- The billing is passed to the electronic billing system.
- The bills are aggregated and sent to the customers.
- The customer receives the new bill notification email.
There are two main types of billing systems which are used; biller direct systems and bank aggregator systems. In biller-direct electronic billing, the service companies allow users to log in to view and make the bill payment. In bank-aggregator systems, the users have to log into the website of their banks and pay the bills.