Payments and Billing

[Norwayguy]

Getting resistance about this in the office. We live in a low income area and our employees are saying we aren't being fair to the people who have no checking accounts. I say, take your cash to the bank, get a bank check and pay your bill that way. How do they pay their phone and electric bill? How about their oil bills?

Or take a month and on every agency pay have them record the premium amount....You will get an idea of what percent of your client bases uses this and what the potential loss of commission is.

 

[The Colonel]

Although I'm quite conservative, I have a very liberal money taking (ie getting paid) policy-anyway you want to give it! I do know of some folks in urban areas that have a "no cash policy" for saefty reasons, but other than that why risk losing (or not getting) a client by not offering the payment option they want?

 

[VolAgent]

Getting resistance about this in the office. We live in a low income area and our employees are saying we aren't being fair to the people who have no checking accounts. I say, take your cash to the bank, get a bank check and pay your bill that way. How do they pay their phone and electric bill? How about their oil bills?

It is business. It is not about being "fair", it is about delivering good service and being profitable. I would follow Peter's advice. If it is a large percentage of your business, then you better keep taking cash. If it is just a few old clients that have been with the agency for years, I'd probably keep doing it to honor their loyalty but not do it for anyone else going forward.

 

[Aram Fingal]

If it's an existing customer and they come in to pay you cash, you can't refuse the payment. I believe you're violating insurance law if you do. So the only way to deal with that is to strongly recommend they come up with some other form of payment in the future, or move them to another agent. There are agencies that would probably be glad to take your clients off your hands.

 

[redsox24]

Thanks everyone. I did do what Peter said. If we lost everyone that pays with cash, we would lose $3,700 in commission. I don't like that. So I decided I will grandfather the ones that have paid cash forever and going forward, as you said VolAgent, we won't do it.

 

[insurance1822]

What's so wrong about cash payment client? If and when I am able to establish my own P&C agency, these will be my primary target.

WOW.....just....wow. Good Luck Skippy!

 

[benwrigh]

We don't have a problem with taking cash payments. I prefer not to, but in our region, rural and lower income, a large amount of the population does not have a checking account. It is quite astounding. The question is what is your goal? To make your life easier or your client's?

 

[redsox24]

I don't think it's a question of an easier life for the customer or the agent. I think it comes down to responsibility. And I have an example that I am working on right now. It's almost 8:00pm here. It's Labor Day weekend. I opened the office email and at 7:00pm we were sent an email with the customer's credit card number, expiration date, security number, name, address and phone number in the email asking us to make a payment. It was due on 8/27/13 and will be charged a late fee of $15 after 5 days. So now it's our responsibility to make sure this customer's bill is paid. Why is it our agency's responsibility? Suppose I had left for the weekend with no access to our email or to the company's website. She would be in cancellation and have a late fee of $15. Plus, throwing her credit card info into an email is just unbelievable to me. I love helping people. I've done that most of my life. But sheesh people, take some responsiblity for yourselves. The company gives you three options on your bill to pay!! Just do it!

 

[Milkman1265]

what the heck... i must be doing something wrong....

even though all my policies are direct bill, 80% of them still likes to bring me a check/cash in person. I just remit it for them. I get to talk to them for a few minutes, find out anything new, and possible get a referral or another product line out of them.

i'll say 30% of my clients come in and pay me cash, i don't find it so hard to deal with. Although i discourage it by saying its easier to track and do your taxes with a check. But they do come in with cash. I just deposit and have the carrier/mga sweep my account or write out a check to the carrier myself.

I never had a problem with cash or check written to agency at all.

No one likes agency bill here?

 

[redsox24]

Milkman, whatever works for you, then that's the way to go.

Maybe I've been in this for too long.

Edit: I DESPISE AGENCY BILL!!! The only agency bill accounts we have are the ones with Surplus Lines. All of our personal lines and commercial accounts are direct bill.