SMS billing is a way that customers can make a payment for a product or service they have received using a text message. A customer makes a payment after receiving a text message with an invoice. The customer then completes the transaction by replying with a text message or clicking on the provided link. That text message or clicking on the link will communicate with the seller’s payment processor, and the customer can complete the payment.
SMS Billing Services
The way that SMS billing works may vary from provider to provider, but the basics include:
- Sending a text message to the customer’s number or the customer texts a short code to the business to pay for the product or service
- After the customer or the business initiates the texting, the customer receives a link that leads to a payment form.
- The customer fills in the provided form by providing payment details
- The customer will receive a code that is unique to that one transaction, and they can complete it
- The customer may opt to save their payment details for recurrent payments. For subsequent transactions, they will receive a text message verifying that they want to make another transaction.
To begin using SMS billing, you will need an SMS payment provider. The provider enables your business to integrate text messages with a payment processor. It is crucial to have a secure payment processor that keeps customer information secure to be confident that their financial information is safe.
Some text messaging payment processors will only have that function, but some can provide credit card processing in addition to text messaging processing. If your business already has a credit card facilitator, check if the two payment processors can integrate. If they can, it will be easy to process all kinds of payments convenient for accounting purposes.
Getting Started With SMS Billing
You will set it up by text commands, payment links, or SMS invoices to use SMS billing. Text commands are when a customer is interested in making a purchase. Your business will send a text message containing a keyword specific for that transaction to complete that purchase. The customer then replies with that keyword to make the payment once they have approved the transaction.
This method is best for repeat customers because they key in their information and the text message sends the keyword for them to approve the transaction. The customer does not have to key in their information every time they need to make a payment.
Using payment links works by sending your customers a link. When they click on that link, they can complete the payment. This payment method is great for customers who need to make a recurrent payment such as a weekly or monthly bill. The text message serves as a reminder to make the amount due and the link to complete the transaction.
Using invoice while using text short codes is another method of SMS billing. The customer’s invoice is in the text message sent as an attachment or within the text. The invoice also comes with a link to click on and make the required payment.
Benefits Of Using SMS Billing
SMS billing benefits both the customer and the business owner. All your customers can receive text messages. Because most people have access to mobile phones with text messaging capacities, you can reach many others.
Another benefit is that text messages are easily accessed compared to emails and other types of messaging. Additionally, text messages create a convenient payment reminder system with a good response rate.
Another advantage of using SMS billing is that customers will easily make payments quickly and conveniently when they click on the link—hence, your business benefits from regular and consistent payments. It also allows shorter periods for making payments, and you will not have to do countless follow-ups to them.
There are fewer instances of credit card fraud or receiving fake cash with SMS billing. You also do not have to get any special hardware.
Conclusion
SMS billing is beneficial for businesses as it makes it easy to process large volumes of payments in a short time. It is also easy to set up and use for daily reminders to your customers.
