IVR Payment: What It Is, How It Works & Why Your Business Needs It?

An IVR payment is a phone-based system that utilizes Interactive Voice Response (IVR) technology to enable customers to make secure payments using voice prompts and keypad inputs. Customers follow a voice menu, enter their payment details, including a card number or PIN, and complete the process.

IVR payments can be used across various industries to simplify bill payments. In banking, IVR payments can handle credit card payments and loan EMI collections. Similarly, in retail businesses, they are used for order payments, product pre-booking, and subscription renewals.

For hospitals and clinics, it enables patients to settle medical bills or insurance premiums remotely.

An IVR transaction works by guiding the caller through a series of automated voice prompts to enter payment details, such as credit card or bank information, using their phone keypad or voice. Once the information is verified, the system processes the payment securely and provides a confirmation.

It begins when the customer initiates a call, is transferred by an agent, or receives an outbound call. After an automated greeting and payment instructions are provided, the customer enters their payment details, which are verified and processed in real-time, with a confirmation provided once the transaction is complete.

1. Call Initiation: The IVR payment process can begin in three different ways, depending on who initiates the call:
   • Customer-Initiated Call: The customer can make a payment directly by calling a dedicated IVR payment number.
   • Agent-Initiated Transfer: If the customer is already on a call, the agent can transfer them to the secure IVR payment line.
   • Agent-Initiated Outbound Call: An agent calls the customer and transfers them directly to the secure payment system.
2. System Greeting: In the automated payment line, an auto-attendant welcomes the client with a recorded greeting.
3. Payment Instruction: The system uses a multi-level IVR to present payment-related prompts and guides the caller through the process step-by-step, also informing them of the amount due to be paid.
4. Entering Payment Information: The caller provides their payment details, including the credit card number or bank account details. Then, they enter the password or PIN using the keypad or voice commands.
5. Payment Verification: The IVR system securely checks the provided information for accuracy, validity, and authorization.
6. Payment Processing: Once verified, the system processes the payment in real time through the connected gateway.
7. Payment Confirmation: After payment processing is complete, the system confirms the transaction and may provide a receipt or confirmation number via SMS, email, or other options.

IVR phone payments provide customers with 24/7 access to your business, allowing them to pay at any time without requiring internet, apps, or agent assistance. With PCI-DSS compliant systems, payment details stay protected, more secure, and highly reliable. As a result, you improve cash flow and deliver a better customer experience.

1. Improved Customer Experience: IVR phone payments enable consumers to pay bills remotely at any time, making the payment process convenient. This reduces wait times, speeds up the process, and provides a hassle-free experience.
2. No Internet or App Needed: Customers don’t need internet to make a payment. Plus, there’s no need to download any apps or visit websites. That’s why IVR payments are super easy to use: just pick up the phone, dial the number, and follow the voice prompts.
3. Reduces Support Costs: Users don't have to face issues related to logging in, app glitches, and internet problems. It reduces support calls in the call center and frees up agents, which in turn lowers the support costs.
4. Secure Transactions: Most IVR systems strictly follow PCI-DSS (Payment Card Industry Data Security Standard) standards to protect clients’ sensitive data. As there’s little to no human involvement, it reduces the risk of fraud and data breaches.
5. Improved Cash Flow: Since IVR payments are available 24/7, customers can pay whenever convenient for them, even after business hours or on weekends. As a result, there are fewer missed payments and quicker transactions.

IVR payment can be offered as a standalone solution or built into call and contact center platforms as a feature. Below, we’ve listed 5 standalone IVR payment solutions you can choose from.

Agile Payments is a trusted IVR provider that automates phone payments using credit cards and Automated Clearing House (ACH). It also offers easy setup through an online dashboard and optional integration with web-based bill pay systems.

The platform is renowned for its flexibility, enabling customization tailored to individual business needs. Pricing is quote-based, with full IVR setup starting at $500.

Plivo is a leading phone-based payment solution that gives businesses full control over their systems to customize and reduce costs. It also ensures robust data protection, complying with PCI DSS, GDPR, and HIPAA standards.

While pricing for IVR payment isn’t listed separately, Plivo follows a competitive pay-as-you-go model, covering calls, local numbers, and call recording.

Encoded is a top IVR provider offering secure, 24/7 automated self-service for credit and debit card payments. It holds Level 1 PCI DSS accreditation, the highest security standard for payment processing.

Encoded also integrates smoothly with your existing CRM and phone systems, creating a seamless experience.

Repay is an omnichannel payment processing provider from Georgia and offers fully automated IVR payments. It can handle multiple payment methods, including credit/debit cards, ACH (bank transfers), digital wallets, and even transform cash into digital payments using its eCash feature.

Moreover, businesses can set and adjust their business hours without incurring additional labor costs.

Key IVR is a secure, cloud-based payment solution that supports automated phone payments. Customers can pay using credit or debit cards, or via direct debit.

It supports three payment methods: agent-assisted, warm transfer, and outbound IVR, all of which are PCI-compliant with real-time progress tracking and full data masking.

Selecting the right IVR payment provider is crucial to ensure your business can securely process transactions and provide a seamless customer experience.

Consider the security features, ease of integration, customization options, support, scalability, and pricing of the provider while choosing one.

1. Security Features: Ensure the provider sticks to industry security standards, such as PCI DSS, and offers encryption and fraud protection to secure customer data.
2. Ease of Integration: Choose a provider that integrates smoothly with your current phone system, payment systems, and CRM tools to simplify the payment process and enhance efficiency.
3. Customization Options: The best IVR transaction processing systems allow easy customization of call flows, menus, and prompts. It ensures the system can be tailored to suit your business needs and provide a reliable customer experience.
4. 24/7 Support: Look for a service provider that offers dependable support around the clock. Issues can arise at any time, and having access to support ensures that problems are resolved quickly.
5. Scalability: It should be able to grow with your business. Select a provider that can handle higher call volumes and provide flexible solutions to meet your evolving needs.
6. Budget and Long-Term Value: Choosing a provider within your budget matters, but cost-effectiveness extends beyond price. Look for strong features, solid security, and options that also offer long-term savings.
7. Look for Transparent Pricing: Decide on a provider with transparent pricing that includes no hidden fees, avoiding unexpected costs that could impact your budget or lead to mistrust.

IVR payment is a powerful and secure way for your customers to pay over the phone, eliminating the need for apps or websites. It is a quick and easy way to process secure payments without relying on live agents.

As a result, it improves accessibility, reduces operational costs, and helps businesses of all sizes offer a fast and reliable payment option. Whether you're in banking, retail, healthcare, or any other sector, IVR payment can simplify your billing process and improve customer satisfaction.

When selecting a provider, prioritize security, integration, customization, support, and transparent pricing. Ultimately, a well-implemented automated phone payment system not only enhances convenience but also fosters trust among your customers towards your business.