An online debit system allows communication service companies to charge in real-time for services rendered. The system initiates charges as soon as the service session ends, using financial data on file. The system generates an electronic invoice and sends it to the customer via email. The system benefits suppliers by increasing cash flow and creating unique price packages, while customers benefit from settling charges quickly and receiving payment confirmations.
An online debit system (OCS) is a type of payment system that allows companies that provide communication services to charge in real time for services rendered. The exact process used will vary based on how the pricing matrix is set up for the services provided. Typically, when the charges involved are for per-minute/per-connection-rated services, the online billing system can initiate the charge as soon as the service session ends, using financial data on file with the provider.
One of the easiest ways to understand how an online billing system works is to consider how a teleconferencing company might bill a customer for a conference call. With this form of call accounting, the process begins as soon as the conference call session ends, usually when the telephone line designated as the lead or moderator is released from the call and all other lines are also released. At that point, the conference call details are downloaded from the conference bridge to the provider’s billing system. There, call usage is priced against the price extended to that customer, and an electronic invoice is created in the system.
Once the invoice is created, the online billing system uses the financial data to draw up a credit card or bank account for the total cost of that conference call. Assuming the funds are received, they are transferred to the provider’s bank account. One of the features that can work in tandem with the OCS is a feature in the billing system that generates and immediately sends an electronic invoice to the customer via email. In this case, it is not uncommon for the online debit system to also send the customer a payment confirmation.
A significant benefit of using an online billing system is that suppliers are able to receive payments in real time, without much of the cost and delay associated with more traditional billing processes. This increases the frequency of cash flow, while also making it possible to create unique price packages for different customers with minimal effort. Customers benefit because charges are settled quickly and there is no possibility for late fees or charges to be applied. Additionally, the ability to receive a payment confirmation that includes an electronic invoice that has already been marked as fully paid can make it easier for the customer to keep their accounting documents up to date.
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