Leverage ePayPolicy for faster receivables

by Digital Payment Processing

Leverage ePayPolicy for faster receivables

There are a handful of ways you can put this powerful tool to use for your business today.

Get the word out

  1. Place your ePayPolicy link on all your invoices
  2. Add your ePayPolicy link to your company’s email footers
  3. Add a Pay Now button to your corporate website (Download icons)
  4. Send an email to your current customers announcing this exciting new payment option

Don’t forget your team
One of the best ways to implement ePayPolicy at your company is to add your team to application. The platform gives you entire organization the ability to track payments. Getting your team excited about the many benefits of ePayPolicy will only serve to help engage your customers.

Top 3 reasons to stop accepting checks

by Digital Payment Processing

Top 3 reasons to stop accepting checks

Checks became common practice in the late 17th century and have somehow survived hundreds of years of financial evolution, but that run could be coming to an end. We’ve come up with three reasons why you should shift to digital payment solutions. 

Inconvenience
Consumers use checks, because we’ve always used checks. We often overlook the numbers of steps it takes to pay a bill by check. From finding the checkbook to finding stamps, envelopes the mailing address, to the outgoing mail box. When a consumer starts paying with electronic checks or credit cards they never turn back.

Long Wait Time
Merchants that receive payments by check get paid slower. Whereas credit card payments are processed and hit a business bank account in one to three days, the average time it takes to receive and process a check is 15 days. If you want to speed up your receivables, stop taking checks.

Checks Bounce
Credit card payments are denied immediately, but checks can bounce. Not only does this lead to longer wait times (see above), the resulting fees and administrative time needed to track down payments costs businesses valuable resources. 

We know that many businesses can’t stop taking checks, but offering digital payment alternatives is a step in the right direction. Migrate customers to digital payment solutions and you’ll be glad you did.

Sign up in five minutes. With ePayPolicy you’ll start accepting payments online in under 24 hours. Learn more…

3 reasons why every independent insurance agency should accept payments online

by Digital Payment Processing

3 reasons why every independent insurance agency should accept payments online
Online payments have been on a meteoric rise since…well…a long time. And just about every major industry accepts credit card payments online except insurance. If you talk to any producer, they’ll tell you exactly why – they don’t want to lose a dime out of their commission; including a transaction fee to Visa, MasterCard, Amex or any of the other card brands.

But did you know that it’s possible to pass on the credit card fee to your insureds?

Even though some states regulate these fees, what’s commonly referred to as a surcharge, there are still ways to make it legally work.

Now that we got a reason NOT to accept online payments out of the way, let’s cover why you SHOULD.

Reason #1: You Bind Policies Faster

Have you ever had a client tell you that the check is in the mail only for you to wait a week and not have it arrive? That’s right, you’re getting slow paid. Or maybe not paid at all.

But take yourself back to the moment when you were standing in his office. What if you could pull out your phone and accept a payment right there via check or credit card? Just think of it. No special software. No fancy dongle. It’s as simple as punching in a few numbers and clicking a button.

Just like that you’ve captured a payment and you can bind the policy. You’ve done the hard work in getting the quote together, why stumble on capturing the payment? After all, that’s supposed to be the easy part.

Reason #2: No More Paper Checks

Most of the time when online payments are discussed credit cards come to mind, but that’s just the tip of the iceberg. For insurance agencies, it’s incredibly important to be able to accept checks online. In fact, our clients typically run 3 times more eChecks than credit cards. That makes sense given the fact that the fees for processing eCheck transactions are MUCH lower than credit card transactions.

And when your insured has cash in the bank and he is footing the bill on the transaction fee, which one do you think they’ll choose – $3 for a eCheck transaction or a percentage for a credit card transaction?

Let’s not forget a major benefit to your agency. The current process of handling a paper check is cumbersome at best. Once the check finally arrives you have to open that envelope, scan the check, and upload or drive it to the bank.

Even if you valued every employee’s time at a flat $15 an hour, what does it cost your agency to process checks? And how much would it save your agency if you could process a check payment online without scanners or faxes?

So say good-bye to paper checks and let your insured pay online via eCheck. It’s just easier.

Reason #3: Your Insureds Will Thank You

Now think of what it’s like in their shoes. Imagine you’re a business owner and your wonderful insurance agent calls to remind you that your payment is due and if payment is not remitted immediately, the policy will expire. So, naturally you ask how you can quickly make the payment. That’s when your agent asks you to write a check and drive it across town in rush hour traffic.
Let that sink in.

In an age where every business is trying to find simple technologies to make it easier for their customers, wouldn’t it make sense to let insureds pay from their office or field or home? Trust me, your insureds will love you for giving them the option.

The role of stamping offices in surplus lines insurance

by Digital Payment Processing

The role of stamping offices in surplus lines insurance

For many businesses, the concept of surplus lines insurance can be complex and confusing. The role of stamping offices in this industry can be even more difficult to navigate. Among the most important recent changes in surplus lines insurance is the creation of stamping offices. Such offices serve as a voluntary partnership between state regulators and the surplus lines insurance industry.

The role of these offices is to facilitate consistency and encourage compliance even though the surplus lines insurance industry exists outside the typical regulatory structure. While stamping offices might seem like a new concept, the idea actually dates back to the 1930s when the first surplus lines association was formed in California. Along with educating the public regarding this insurance market, stamping offices offer help to buyers and assist in evaluating the eligibility of surplus companies.

There has been some debate regarding the importance of the role that stamping offices play in regards to the regulation of the surplus lines insurance industry. Stamping offices certainly make it easier for consumers to locate eligible carriers. Additionally, stamping officers allow for a much smoother flow of information between licensed surplus lines brokers and the insurance office. In an industry that can be quite complex, communication can be essential. Furthermore, stamping offices assist surplus brokers with making certain they comply with local stamping requirements.
All surplus lines policies are required to be stamped. This means that the policy is stamped to clearly indicate that the policy is, in fact, a surplus lines policy rather than a regular insurance policy, which would be subject to state regulations.

Requirements may vary from one state to another, but agents are typically required to submit a copy of every surplus lines insurance policy sold to their state stamping office. That office will then be responsible for reviewing the policy to make certain it was placed properly with an eligible surplus lines insurer.

The consequences for failing to submit the policy to the state stamping office may vary. In most states, compliance in regards to the stamping office is strict and significant penalties may be incurred should a broker fail to comply.

While surplus lines carriers remain relatively free from regulation on a state level, particularly in regards to rates, this does not mean that they are completely free from all regulation. Surplus lines carriers are still able to act as free agents while responding to the coverage needs of consumers and changing market conditions, but adherence to stamping office regulations and requirements is necessary in many states.

What Is Surplus Lines Insurance?

by Digital Payment Processing

What Is Surplus Lines Insurance?

The world of insurance can be complex enough, but when specialty insurance becomes involved, it can become even more complicated. A prime example of this is surplus lines insurance. In many instances, companies or individuals will go to a broker to find insurance coverage. The broker serves as an intermediary between the individual or company and the insurance company and works to find a policy from a state-licensed insurer that meets the client’s needs. In some cases, the individual or company may present too great of a risk because it does not meet the established guidelines of the licensed insurer. When this happens, a surplus line producer or broker may become involved in procuring a policy that will meet the needs of the client. Many times, this means working with an insurer that is not licensed in that state.

As the insurance company is not licensed by the state, this means it is also not regulated by the Department of Insurance in that state, or at least not the same degree as a licensed insurance company. This gives the surplus lines insurance company more freedom and flexibility in terms of how it operates. It is generally not restricted to the same rate regulations as are insurance companies that are licensed in that state. Additionally, a surplus lines insurance company has more flexibility in terms of establishing guidelines as related to accepting risks.

Also sometimes referred to as excess lines insurance, this type of policy makes it possible for companies or individuals to obtain coverage for unique risks, including a claims history that most insurance companies would not cover.

While there are obvious benefits to a company or individual seeking coverage from a surplus lines insurance company, there are also drawbacks. For instance, the policyholder takes on an additional risk since there is not a guaranty fund. This means that in the event the surplus line insurer files for bankruptcy, the policyholder may not be able to receive a claim payment. By comparison, if a state-licensed insurance company goes bankrupt, a policyholder’s claim could be paid from the state guarantee fund. Additionally, rates may be higher with a surplus line insurer. State-regulated insurance carriers must adhere to state regulations in regards to the rates they can charge. This is not the case with a surplus line carrier. Since a surplus line carrier is not regulated by the state, it is able to take greater risks and may also charge higher rates.

Perhaps one of the best examples of a surplus line carrier is Lloyd’s of London. While this carrier is not licensed in the United States, Lloyd’s of London does issue policies in the United States.
In situations in which a company or individual is not able to obtain coverage from an in-state provider, surplus lines insurance can provide an effective solution.