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Contactless payments are becoming more common in all different areas of life. Accelerated by the Coronavirus pandemic that began in 2020, more and more customers are looking for ways to pay for products and services without physical contact, leading to a growth in popularity of payment methods such as mobile payments.
One such method that is becoming more popular is Interactive Voice Response Payments (IVR Payments). Put simply, this is a way for customers to provide payment details to an automated system over the phone. IVR payment services are a secure way to pay, and can be done from anywhere and at any time. Keep reading to find out more about IVR payment processing and to learn the answer to the question: “How does IVR payment work?”.
What is a IVR payment?
Many business owners and customers alike are asking the question: “What is an IVR payment?”. Basically, this is a payment made using an interactive voice response – in other words, by interacting with an automated system over the telephone.
IVR payment services may be self-service or agent assisted. For self-service systems, the customer makes a phone call and then is automatically transferred to the IVR payment system where they can make debit or credit card payments. For agent-assisted calls, the customer will initially speak to an agent who transfers them to the IVR payment processing system before exiting the call.
Agent-assisted calls can help to build the customer’s trust in the transaction, as some may be wary of an entirely automated system.
How does IVR payment work?
IVR payments work in a similar way to other MOTO payments, which is a term used to refer to transactions that take place when the customer is not physically present. These payment systems rely on the customer providing card details to a payment gateway, often through a website. In this case, they will provide their card details over the phone.
Businesses can accept by setting up a dedicated phone number to accept payments. When you provide customers with a bill, you will also give them a unique reference number that they can key in when they call the number. Following this, they will enter their card details and CVV to complete payment. The telecom company will not store any details, making this a secure method.
What are the benefits of IVR payment processing?
Now that you understand how IVR payments work, you might be wondering why you should consider offering them to your customers. There are a number of different benefits to introducing an IVR system:
Reduce work for your staff members. If you have sales representatives who are currently accepting payments over the phone, you can reduce their workload by automating this process. This leaves them free to focus on other tasks and therefore reduces low-skill work.
Customers are not restricted to office hours and can make payments whenever they are available.
You reduce the risk of late or missed payments, as customers can make the payment whenever is convenient to them.
IVR payments are compliant with the major industry standards such as PCI and HIPAA, making them a secure way for your customers to pay.
Are IVR payments secure?
Some people feel uncomfortable at the prospect of paying over the phone, with worries that IVR payments may not be secure. In reality, IVR payment processing is a highly secure process, as no payment details are recorded by the telecom company. What’s more, it reduces the risk of more traditional methods, where agents may physically note down customers’ payment details.
In addition, IVR payments are required to comply with the standards of PCI and HIPAA. Global PCI standards ensure the highest technical and operational security, protecting sensitive customer data. HIPAA (the Healthcare Insurance Portability and Accountability Act) is a piece of US legislation that requires businesses to protect personal data and confidentiality with proper security systems.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.