Benefits of card acceptance for public sector agencies
Public sector institutions—including transportation agencies and various levels of government—face major challenges in their efforts to control costs and improve cash flow and payment compliance.
Labor and Operational Efficiencies
Credit and debit card acceptance allows agencies to automate fee collection via the Internet, automated telephone voice response units, and self-service kiosks. Card transactions are often completed more quickly and efficiently than transactions that involve making change, filling out forms, or processing checks.
Improved Cash Flow
The electronic payment methods available with cards today can result in funds deposited in an account more quickly, allowing you to earn interest faster. In addition credit and debit card payments made by telephone or in a face-to-face environment can eliminate "mail float"—the interest forgone while checks are in the mail.
Reduced Risk of Losses from Bad Checks
When card transactions displace check transactions, the resulting volume of checks returned for "non sufficient funds" (NSF) and their associated fees, penalties and collection costs are reduced. This also diminishes redeposit fees that your agency must pay, as well as the cost of processing additional transactions.
Enhanced Payment Compliance
Card acceptance offers payment flexibility—allowing cardholders to spread payments out over time. This can result in healthier collection rates of taxes, fees and fines and increased revenues. Consumers also appreciate the convenience of debit cards that enable them to access a checking account without writing a check.
Increased Customer Satisfaction
Electronic payment methods allow public sector agencies to match the level of customer service typically provided by companies in the private sector. Improvements are evident in shorter waiting times, better customer relations, and greater access to information. The speed, convenience, and payment flexibility that cards offer have become a way of life for consumers, who demand an ever-wider variety of payment choices from government agencies. In fact, the costs involved in card transactions can often be partially or fully offset by the benefits discussed here.
Download and read case studies on the benefits of card acceptance. Monterey County, California simplified child support payments, Beaver County maximized revenues, The Virginia Department of Motor Vehicles made business more efficient and The Long Island Rail Road enhanced customer service and improved operations...all with the implementation of a card acceptance program.