Debunking Myths About Electronic Payments: What Radio Stations Should Know

Myth 1: Advertisers Don’t Want to Pay Online

Many stations think their customers are committed to paying by check. It’s likely simply a habit they have, and if it’s the only option, they’ll have to continue this way. The fact is that they are making online payments to other vendors.

The shift to electronic payments in the B2B space has been high. In 2024, only 32% of companies paid by check or cash. ACH and credit card payments account for nearly 55%. Most businesses appreciate this convenience. Agencies want this option and may find it cumbersome if you don’t offer it.

If you make this available and communicate that they can receive and pay invoices online, you could see quick adoption.

Myth 2: Entering Manual Card Payments Isn’t Risky

Manually taking credit card payments over the phone and typing them creates risk. Staff may inadvertently enter numbers incorrectly, causing discrepancies that are hard to track and correct.

Additionally, someone may write this information down and accidentally forget to dispose of it securely. It could, unfortunately, fall into the wrong hands.

Disputes can be an issue with manual runs, as someone can dispute the charge, stating they didn’t authorize it. As a result, you could face fees and extra work to get paid.

Along with carrying risk, manual processes are inefficient and time consuming.

Using a payment portal, your customers can enter their information in a secure, compliant environment. There’s no work for your team, and the money can fund in as little as one day.

Myth 3: Sales Teams Want to Collect Checks as Part of the Relationship

Salespeople often play a role in receiving payments, but do they really have time to drive around and pick up checks? They’d rather be generating new business and having strategic conversations with current customers.

If sellers have some concerns about this, talk to them about how easy electronic payments are for customers and your station. They’ll certainly appreciate faster payments since it directly impacts their commissions.

Myth 4: Customers Won’t Use a Portal If They Have to Create an Account

In many cases, when making purchases online, companies do force their customers to create accounts. It can cause friction, but some businesses appreciate the self-service aspect of updating their information and viewing their invoices. Access to this also decreases calls to the station about what they owe.

Account creation isn’t mandatory for many electronic payment solutions. Instead, they can use guest checkout. Advertisers can view their statement and enter their payment information without a login.

Myth 5: Accepting Electronic Payments Is Too Expensive

You have to pay processing fees for ACH, credit cards and debit cards. These fees can vary depending on the type of payment. ACH has the lowest rate, while credit cards have the highest. Some processors use a tiered rate system with different costs depending on multiple factors. It’s hard to know what you’re paying month to month.

Flat fees are typically less and much easier to understand. Beyond processing costs, you may also have to pay “hidden” fees. On top of this, payment portals can charge you a lot for implementation, software use and integration into your radio traffic system. It’s easy to believe the expense isn’t worth it in these cases.

However, you can find a cost-effective solution with a competitive flat rate. All those other expenses aren’t part of every system. Additionally, you can reduce fees by promoting ACH electronic payments. You can also choose to surcharge, but it may deter some customers.

The truth is that you get paid faster electronically, which means money comes in sooner and more reliably. There are many steps to enter and deposit a check, which can cost you $1 to $2 per invoice.